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By E. Wainer, K. D. Burnham

A wet beneficiation technique for producing wollas-tonite from its ore in high yield and purity has been evaluated in a pilot plant operation at the rate of 75 tons per month. Finely crushed, unsized wollastonite ore mixed with water is passed through a high in tensity oscillating wet magnetic separator of unique design and in a single pass over 90% of the wolla-stonite exhibiting a crystal purity of 99.8% is obtained irrespective of size of feed fraction. Thereafter, the material is processed by closed cycle standard wet milling and classification techniques to yield a 1µ size product, though any mesh size up to and including 50 mesh may be obtained, if desired. Costs appear to be significantly lower than those available from dry processed techniques. Wollas tonite made by this unusual wet process appears to have potential utility in the following fields: ceramics, paints, plastics, paper, organic finishes, reinforcement of portland cement items, controlled porosity refractory ceramic foams, cinder and concrete block paint, and the like. The 1µ and certain chemically processed varieties of wollastonite may have unusual utility in the paper industry both as a filler and as a coating material and in the organic finish industry. Extensive deposits of wollastonite ore equivalent to an average tenor of 50% to 60% of this latter mineral in easily separable form exists in and around Essex County in northern New York State in reserves of the order of several tens of millions of tons. While important portions of these deposits are susceptible to open pit mining techniques, one operation near Wills-boro, N.Y., involves tunnel mining and dry milling and beneficiation techniques. This mill and tunnel mine is presently being operated by The Cabot Corp. and a variety of particle sizes are now sold into markets in the ceramic, paint, plastic finish, floor tile and in similar fields in substantial tonnages on a repetitive basis. Serious investigation and study over the past several years has indicated that, outside of the obvious economies of open pit techniques for mining purposes, wet beneficiation and milling procedures applied to the ore not only represent a potential for greater economies in the production of a superfine finished product but yields products of improved properties exhibiting increased market potential which may not be available from the dry ground product. The Lewis and Deerhead deposits, controlled by the Adirondack Development Corp., appear to be identical to the Wilisboro deposit. Utilizing ore taken from the Lewis and Deerhead deposits, a pilot plant process for the wet beneficiation, milling and classifying of wollastonite ore has been operated for several months. After scalping a marketable garnet product from a minus 16 mesh dry crushed feed on a high intensity roll magnet the balance of the material is then roll crushed in a closed cycle until it will pass a 50 mesh screen. The product constitutes the feed of the wet magnetic separator. The heart of the new beneficiation process is a cyclically operated wet magnetic separator which exhibits the unique feature that unsized feed is easily handled. Product yields of higher purity are equal to that obtained with dry magnetic separations which use closely sized dry ore and multiple passes, but only produce wollastonite of about 98% mineral purity as determined by sink float techniques. It was anticipated that the wet processing through the grinding, milling and classification stage would yield a low cost 1µ ground product which should make available greatly increased applications for the mineral beyond those presently enjoyed. The improved purity was also expected to provide coarser sizes which might be utilized as a raw material for chemical modification which again would expand the uses of wollastonite. The evidence thus far collected appears to indicate that this premise may be expected to be fulfilled. There are on the surface of wollastonite particle sites at which cheinical reactions may occur1. It is believed that wet ground material provides a better base which will allow wollastonite a deeper entree into the field of chemical raw materials. Wet ground at 20µ and finer permits with certainty a number of chemical reactions, some of which are mentioned later in this article. While well crystallized wollastonite makes up the majority of the ore, the balance consists mainly of very weakly magnetic diopside of the hedenbergite-

Jan 1, 1965

By R. C. Hartviksen, B. H. Boyum

"The Sherman Mine, Temagami, Ontario, is an iron ore pellet operation rated at one million tons per year capacity. Mining is done from three open pits in two bands of Keewatin iron-formation intercalated in a 'greenstone belt' thought to be part of the Archean 'Abitibi Belt'. The bands of iron-formation are tabular and steeply dipping, averaging 75 degrees. The principal ore mineral is magnetite.Blast holes, 1214 inches in diameter, are drilled on 28-foot centers, each hole being sampled and assayed for both total iron and magnetic iron. Concentration tests are made in the laboratory to determine the anticipated concentrate grade. Two classes of ore are recognized -'liberating' or 'refractory'. Blending is done on iron con-.tent, degree of ease of liberation (i.e. grain size) and chunkiness. The latter is important, as primary milling is done in autogenous mills. Actual daily mill results are compared with predicted grade from blast holes, exploration diamond drill holes and pit inspection. Hourly mill samples are analyzed by the X-Ray Fluorescent Analyzer, with emphasis on silica grade. In 1969, the pellet grade was improved from 7 .01 per cent silica natural to 5.50 per cent silica natural."

Jan 1, 1970

By Peng Qian, Xiao Li, Guoyan Fu, Peiwei Han, Yongliang Wang, Shufeng Ye

"Arsenic removal from high arsenic gold concentrate is conducive to increase the mineral value and realize the mineral comprehensive utilization. This study investigated the alkaline pressure oxidation leaching (APOL) of an arsenical gold concentrate in lower temperature to separate the arsenic into filtrate. The effects of temperature, NaOH concentration, solid-liquid ratio, reaction pressure and stirring speed on the leaching efficiency were investigated, and the characteristics of the gold concentrate and leaching residues were evaluated using XRD and SEM analysis methods. The obtained results showed that by using lower temperature (<60?) it is possible to avoid the production of elemental sulfur during the leaching process, which is benefit for the oxidation of arsenopyrite; When the reaction was carried out under appropriate conditions, more than 98% of the arsenic will be extracted into the filtrate as the form of arsenate or thioarsenate. INTRODUCTION In recent years, there has been considerable interest in the recovery of gold from refractory arsenical gold ore. The arsenic in this kind of ore usually exists as the form of arsenopyrite, and the gold surrounded by arsenopyrite exists as the form of fine particles, which will give many difficulties to metallurgical work. When the content of arsenic in the gold ore is more than 0.5%, it will seriously penalize the smelting efficiency (Ruiz et al., 2014). So pretreatment of the refractory gold ore is necessary to obtain the largest economic value and environmental benefits (Balaz et al., 2000). The oxidation pretreatment processes mainly include roasting oxidation, pressure oxidation, chemical treatment and biological treatment (Ann et al., 1992; Kou and Chen, 2012; Tongamp et al., 2010; Fernandez et al., 1995; Lin and Zheng, 1996). Among them, the roasting oxidation and pressure oxidation are the more ordinary processes in industry. The roasting oxidation process is the mature and adaptable technology, but the production of waste gas containing sulfur and arsenic will pollute the environment. The pressure oxidation method possesses certain metallurgical and environmental advantages, and can efficiently decompose the mineral. According to the different solution media, the pretreatment can be divided into alkaline and acidic pressure leaching pretreatments (Papangelakis and Demopoulos, 1990; Hiskey and Sanchez, 1995). The acidic pressure oxidation method has been used in most smelting plants for high arsenic gold ore pretreatment, while the alkaline pressure oxidation is still not widely applied. Compared with the acidic pressure oxidation, the alkaline pressure oxidation can be realized under lower temperatures."

Jan 1, 2018

By T. Maruyama

The Tamano Smelter of Hibi Kyodo Smelting CO. ,Ltd. went into operation in 1972. The Flash Smelting Furnace that was originally adapted was equipped with electrodes that were attached to the settler substitute of the slag cleaning furnace. Later the development of our own original coke combustion technology was promoted and a new Tamano Type Flash Smelting Furnace (T-FSF), without electrodes, was put into operation in 1988. The technology of coke combustion and combustion the burner have continued to improve. As a result the copper losses in the slag have been reduced as well as a stable operation has been achieved. Furthermore, this has been accomplished while increasing the concentration feed and the matte grade The current objective is to continue to strive for high matte grade operation and to raise production efficiency while paying attention to the important subject of copper losses in the slag. In this report, the data related to the copper loss in the slag reduction are presented along with the influence of the thickness, settling time and coke. The recent operation conditions of the T- FSF are also presented.

Jan 1, 2003

By M. Razavi

This investigation is part an overall investigation on the effect of sodium silicate on the properties of the mine backfill. The results presented will highlight the effects of binder dosage, sodium silicate concentration, and pulp density on the performance of stabilized sodium silicate-fortified sand pastefill samples. Binders implemented for these experiments consisted of cement, slag, and sodium silicate in various proportions. The binder content varied from 3 to 9 wt% (total dry weight) and sodium silicate concentrations was adjusted at 2 and 4% (total binder weight). Moreover, pulp density was adjusted to values between 80 and 83 wt%. For completion of the aforementioned phase of the study, series of sand pastefill test samples were prepared and cured for 28, 56, or 120 days, in a humidity and temperature controlled room. The specimens were tested for uniaxial compressive strength (UCS). In order to study the effect of sodium silicate on microstructures of stabilized sand pastefill, some MIP tests were conducted on selected samples. The results of this investigation evaluate the use of sodium silicate as a partial replacement of cement in stabilized backfill. The analyses of the results demonstrates that, with an increase in binder content and a decrease in pulp density, the UCS values of sand pastefill samples increase. Further more, the results indicate that increase in addition of sodium silicate does not necessarily result in higher strength minefill.

May 1, 2007

By A. Cecala, J. Noll, J. Hummer

"NIOSH has observed that many control rooms and operator compartments in the US mining industry do not have filtration systems capable of maintaining low dust concentrations in these areas. In this study at a mineral processing plant, to reduce respirable dust concentrations in a control room which had no cleaning system for intake air, a filtration/pressurization system originally designed for enclosed cabs was modified and installed. Eighty-seven percent of submicron particles were reduced by the system at static conditions, meaning that greater than eighty-seven percent of respirable dust particles should be reduced. The particle size distribution for respirable dust particles are greater than for submicron particles, and filtration systems usually are more efficient in capturing the larger particles. A positive pressure near 0.02 inches of water gauge was produced which is an important component for an effective system and minimizes particles (e.g. dust) from entering into the room. The intake airflow was around 118 cfm, which is greater than the airflow suggested by ASHRAE for acceptable indoor air quality. INTRODUCTION Chronic overexposure to respirable silica dust (particle diameter < 10 microns) leads to a progressive lung disease known as silicosis. Workers who develop silicosis have an increased incidence of lung cancer and pulmonary disorders. In June 1997, the International Agency for Research on Cancer (1) found sufficient evidence to declare that inhaled crystalline silica in the form of quartz and cristobalite is carcinogenic. Mining is one of the leading industries for occupational exposure to silica dust (2-7). Control rooms located in dusty areas in some mines are of particular concern (8). Many mineral processing operations utilize operator’s compartments and/or control rooms to house workers who are performing particular job functions. Most industrial processing mills have rooms where a worker looks out over the facility and has direct control over the product flow throughout the entire building. In addition, primary crusher operators are often located in a compartment from which they are able to view the primary crushing function. Their job is to control when trucks dump into the primary jaw crusher and the rate of feed of the ore from the hopper into the crusher. Many of these control rooms and operator booths do not have filtration systems capable of cleaning air entering the control room or booth, which can result in elevated concentrations of dust in the room or booth. To reduce the dust concentrations in these rooms, it would make sense to clean the entering air with filtration/pressurization units similar to those proven to provide a clean environment in enclosed cabs."

Jan 1, 2016

By Sergio N. Monteiro

Polymeric matrix composites reinforced with coir fibers are being used in many industrial applications such as automobile interior panels and cushions. These composites have relatively low mechanical strength due to the weak fiber/matrix interface. The objective of the present work was to investigate the effect of a surface alkali treatment of the curaua fiber on the mechanical behavior of polyester composites with different amounts of these fibers. The treatment, also known as mercerization, was performed with distinct concentrations, 0.1 and 10% of NaOH at 1 min and 1 hour, before incorporation of the coir fibers into the polyester composite. The results showed no significant change in comparison to similar untreated coir fiber composites. A microstructure analysis revealed that, in addition to reducing the hydrophilic characteristic of the fiber,the treatment also affects the surface morphology and impairs the fiber/matrix interfacial strength.

Jan 1, 2009

By B. S. Ignasiak, Dennis Carson

"Laboratory study of the behaviour• of binary coal blends shows that coke strength is more closely dependent on the distribution of ""reactive"" oxygen in the parent coals than on their proximate, elemental or petrographic compositions, and it also appears possible to qualitatively predict coke strength from information about reactive oxygen. Proceeding from this recognition, experiments were carried out to test the possibility of preparing metallurgical cokes from binary blends in which non-caking hvb coal was substantially freed of reactive oxygen by prior heat t1•eatment under controlled conditions. The results indicate that such blends can yield surprisingly strong cokes and that coke strength may be amenable to further improvements by modifying the size distribution of the pre-heated component and the rate at which it is charred."

Jan 1, 1976

By B. Q. Li, S. P. Song

"Numerical models are developed to represent complex electromagnetic, free surface deformation and fluid flow phenomena in floating zone refining processes with radio frequency inductive heating. The computational methodology is based on the coupled finite/boundary element method for the electromagnetic field distribution and the Galerkin finite element method for magnetically driven fluid flow and free surface profiles of the molten zone. With the models, the complex transport and free surface phenomena in a floating zone system can be studied as a function of various operating conditions including applied current, frequency, inductor position and shape, surface tension, floating zone diameter and height. Results show that the equilibrium shape is sensitive to the height of the molten zone and that the free surface shapes can have a significant effect on the melt flow in the molten zone. Our extensive simulations also suggest that to ensure accurate results, the same mesh should be used, whenever possible, for both the electromagnetic forces and fluid flow calculations.1. IntroductionThe floating zone processes have been widely used in the materials industry to grow ultra-pure rare earth metal or semiconductor single crystals for sensor or electronic applications that have a tough demand on purity. Developed based on the principle of magnetic melting/levitation, the processes possess a main advantage that the molten zone is supported in air by the electromagnetic forces generated by the coil (see Figure 1), and therefore is free from contamination from a container. Consequently, the final products made from the floating zone processes have higher inherent purity than those by other techniques [1-4].Complex physical phenomena occur in the floating zone processing of materials. These include free surface deformation, magnetically-driven melt flow, which may be turbulent or mildly turbulent [5] depending on the applied conditions, and solidification. Thermal stresses also develop in the single crystals, which are affected by the flow and temperature field and which can have direct implications to qualities of single crystals [6]. An understanding of the fundamentals governing these physical phenomena can be of critical value in elucidating the physics that controls the properties of the metal or semiconductor crystals being produced, thereby providing a rational basis for process improvement and quality control."

Jan 1, 1997

By G. Bulut

The aim of this study is to produce desiccant clay from a well known Ca-bentonite deposit in Turkey. Towards this aim, bentonite samples were first procured and then subjected to some characterization tests. Various methods were applied to enhance the moisture adsorption capacity of bentonites to a desirable level. These methods include utilization of some additives namely calcium chloride and heat treatment at various temperatures. It is shown that the moisture adsorption capacity Ca-bentonites without any additive are between 14%~17 % (w/w) upon by heat treatment whereas the addition of calcium chloride significantly, raised the moisture adsorption capacities.

Jan 1, 2014

By Katsuyoshi Kondoh

The synthesis processing of Mg2Si or Mg2SiIMgO at lower temperature from the elemental magnesium alloy powder/chips and Si or SiO2 powder mixture was established via the repeated plastic working (RPW) based on Powder Metallurgy (PIM) process. RPW is much effective on the mechanical breakage of MgO surface films, which prevent from the solid-state reaction between Mg and Si powder. The solid-state synthesized Mg2Si particle of 200nm-2um is extremely fine, compared to that via the conventional casting process, causing the coarse one of 50-100um. This is because of not coarsening during the solid-state synthesis of Mg2Si. By using in-situ fonning process of Mg2Si via RPW and pre-heating before hot working such as extrusion and forging, the magnesium composite material with Mg2Si or Mg2Si/MgO dispersions was developed in employing Si or SiO2 particles, respectively. For example, when employing AZ31 chips as raw materials of the matrix, it has low density of 1.85g/cm3 and extremely superior mechanical properties, such as tensile strength over 350MPa with 5-10% elongation and Young&apos;s modulus of 47-50GPa, to the conventional Mg-Al-Zn alloys. The Mg composite alloy wires and pipes were produced via the hot extrusion process in the manufacturing plant, and also showed excellent mechanical properties.

Jan 1, 2003

By Katsuyoshi Kondoh

The synthesis processing of Mg2Si or Mg2Si/MgO at lower temperature from the elemental magnesium alloy powder/chips and Si or SiO2 powder mixture was established via the repeated plastic working (RPW) based on Powder Metallurgy (P/M) process. RPW is much effective on the mechanical breakage of MgO surface films, which prevent from the solid-state reaction between Mg and Si powder. The solid-state synthesized Mg2Si particle of 200nm-2JIm is extremely fine, compared to that via the conventional casting process, causing the coarse one of 50-100um. This is because of not coarsening during the solid-state synthesis of Mg2Si. By using in-situ forming process of Mg2Si via RPW and pre-heating before hot working such as extrusion and forging, the magnesium composite material with Mg2Si or Mg2Si/MgO dispersions was developed in employing Si or SiO2 particles, respectively. For example, when employing AZ31 chips as raw materials of the matrix, it has low density of 1.85g/cm) and extremely superior mechanical properties, such as tensile strength over 350MPa with 5-10% elongation and Young&apos;s modulus of 47-50GPa, to the conventional Mg-Al-Zn alloys. The Mg composite alloy wires and pipes were produced via the hot extrusion process in the manufacturing plant, and also showed excellent mechanical properties.

Jan 1, 2003

By Jinsheng Wang, Xueming Lv, Wei Lv, Junyi Xiang, Xuewei Lv, Chenguang Bai

In this study, microwave heating was used to dry the nickel laterite which contains plenty of free water, crystal water and hydroxy water. The results showed that compared with the conventional drying process, the microwave drying greatly improved the drying efficiency of nickel laterite. The whole microwave drying process can be divided into three stages according to the drying rates, namely, the rising stage, stable stage and declining stage. The effects of microwave power output and particle size were also studied in the range of 0.8–2.0 KW microwave power and 3–6 cm of particle size. The results showed that the drying time significantly decreased with the increase of microwave power and decrease of particle size. The phases transition of the sample during the microwave drying process were also discussed.

Mar 1, 2018

By D. G. Collins

As part of its effort to develop ways to maximize resource recovery, the Bureau of Mines investigated the extraction of vanadium from Western phosphate beneficiation tailings with H2S04 and/or H3P04. Dissolution of the vanadium was accomplished by digesting a mixture of acid and a 50-pet-solids, tailings-water slurry. In the most effective method investigated, vanadium and phosphorus were leached by digesting the slurry at a constant boiling temperature (1000-1100 C) in a stirred reactor. In batch tests, maximum vanadium dissolution was 95 pet. In continuous-circuit tests designed to further evaluate vanadium dissolution at con-stant boiling temperature in a continuously stirred reactor, vanadium dissolution ranged from 70 to 85 pet. An economic evaluation of the process demonstrated that H2S04 consumption is the major cost factor. Based on the value of the vanadium product with no allowance for a phos-phate product, the cost of producing the V205 is more than twice its value. The potential for profit would depend upon the value of the phosphate fertilizer produced from the impure H3P04 remaining after vanadium extraction.

Jan 1, 1985

By M L. Leybourne

In 2012, in response to an increasing potential unfunded liability, the Western Australian Government passed the Mining Rehabilitation Fund Act 2012. The intent of this Act was to introduce an annual levy on tenements covered under the Mining Act 1978 based on the area of disturbed land. The fund generated from these levies could then be used to rehabilitate mining sites where all other options to ensure rehabilitation had been exhausted. The fund could also be used to rehabilitate abandoned sites or features which, in Western Australia, number over 10 000.The Mining Rehabilitation Fund (MRF) was implemented on 1 July 2013 for an initial voluntary year. It becomes compulsory on 1 July 2014. By the end of March 2014, nine months into the voluntary period, over $6.5 million had been paid into the fund. The incentive for tenement holders to voluntarily enter the fund was the opportunity to have unconditional performance bonds held against their tenements retired. While there will be circumstances where bonds will continue to be applied, it is the State Government’s intention to retire most of the bonds.The MRF has received mostly accolades from industry and companies that have entered. Most have found the system easy to use. The MRF was also cited as a reason for Western Australia’s improved position in the Fraser Institute’s annual survey of mining jurisdictions. Work is now starting on processes to select priority abandoned mines for rehabilitation.This paper explains the background to the MRF and its development, and reviews its implementation during the first, voluntary, year. It also discusses how the fund will be managed into the future and what this will mean for both abandoned mine features across Western Australia and any future abandoned mine sites.CITATION:Leybourne, M L, 2014. Ensuring rehabilitation into the future – The Western Australian Mining Rehabilitation Fund, in Proceedings Life-of-Mine 2014 , pp 441–448 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By Samson Adeosun, Sanmbo Balogun, David Esezobor

"Iron and steel making processes give rise to large amounts of usable and unusable materials, the latter generally being termed wastes. It is sometimes difficult to distinguish between re-usable by-products and wastes which cannot be sold or land-filled. Much depends on circumstances such as the local market for the material. This can itself vary from time to time with by-products which cannot be used or sold becoming wastes and vice versa. This paper defines the concept of “waste-free technology”, discusses its development in the steel industry and highlights the benefits of the technology to the manufacturing sector and the environment. The paper also articulates how the “waste-free” technology could be applied in the proposed Ajaokuta integrated steel plant in Nigeria.IntroductionIn the past, nature was considered an inexhaustible store. Its resources were consequently exploited and waste products therefrom were discarded. Today, attitudes have not changed appreciably even as raw materials cost rise by the year to pose a series of socio-economic problems, which, among others, may include the rational and optimum utilization of resources, environmental protection and reduction of waste formation. Consequently, industrialists now face unexpected regulatory pressure in areas of pollution prevention, waste minimization and hazardous waste disposal.Iron and steel making processes give rise to significant amounts of usable and un-usable materials, the latter generally being termed waste. It is sometimes difficult to distinguish between re-usable by-products and wastes which cannot be sold or land-filled. Much depends on circumstances such as the local market for the material. This can itself vary from time to time with by-products which cannot be used or sold becoming wastes and vice versa. In this paper, the term waste refers to those materials that are either irrationally utilized or, land-filled and part of the byproducts that are not utilized. It includes that part of used materials which is not incorporated into the products manufactured during a process stage and which in contrast to reuseable materials, is considered not suitable for any further use, owing to technical or economic factors. In general, these materials are inorganic and parts of them are either utilized or passed to the other processes; the other part should be disposed of using well-established waste disposal practices to avoid any environmental threat.Thus, creative methods must be developed to modify the manufacturing processes to reduce emissions and process wastes by fully utilizing all resources. One method of eliminating the negative effect of waste formation is the use of purification and cleaning structures (pollution control system, PCS). These are, however, quite expensive."

Jan 1, 2008

By J. A. Cavallaro

The heats of formation of anhydrous barium carbonate (witherite), strontium carbonate (strontianite), and lead carbonate (cerussite) were determined by solution calorimetry. The solution mediums were hydrochloric acid for barium and strontium carbonates and perchloric acid for lead carbonate. The heats of formation at 298.15° K are as follows: BaCO3 -297.5 ± 0.8 kcal/mole; SrCO3 -294.6 ± 0.5 kcal/mole; and PbCO3 -168.0 ± 0.3 kcal/mole.

Jan 1, 1966

By H. Miki, S. Wheatley

The addition of precipitated silica greatly enhances chalcopyrite leaching in the presence of sodium chloride at moderate temperatures (65-90°C) in acid media with ferric ions as the oxidant. The beneficial effect increases with the increase in chloride concentration and temperature. The addition of sodium silicate and silica sand has no significant influence. The analysis of solubility data in acid/salt solutions indicates that the solubility of silica as Si(OH)4 as the dissolved species is controlled by the activity of water, as expected from the hydration theory. Kinetic analysis shows the trends that copper dissolution from chalcopyrite in the presence of precipitated silica with sodium chloride follows a shrinking sphere model indicating a chemically controlled surface reaction. The effect of temperature on copper dissolution in the presence of both precipitated silica and sodium chloride was also larger compared to the results in sodium chloride alone. The SEM analysis shows that chloride and silica facilitates the precipitation of sulfur on the surface of the silica particles rather than the chalcopyrite particles which avoids the blockage of the mineral surface and thus improves the leaching kinetics.

Jan 1, 2014

By Siddhartha Roy, Hemant Agrawal, Ram Madhab Bhattacharjee, Devi Prasad Mishra

The paper addresses heat stress in underground coal mines, which poses significant threats to miners’ health, safety, and productivity. It involves a comprehensive ventilation survey in three deep and mechanized underground coal mines in India. Using VentSim software, 3D simulation models were developed to predict heat stress conditions and explore the application of auxiliary ventilation and spot coolers to reduce heat stress.

Oct 1, 2023

By Alfred Jr. Petrick, William A. Vogely

INTRODUCTION The scope of mineral finance extends beyond the economic aspects of property evaluation to all of those activities involving acquisition and utilization of funds with an objective to optimize the value of the firm. It must, therefore, en- compass consideration of the overall financial goals of the firm, decisions involving external versus internal growth and domestic versus foreign investments, management of working cap- ital, efforts to minimize the cost of capital, and decisions with regards to the instruments of long- term debt and equity financing. The scope of this section is limited to considerations of special interest to the mineral or petroleum engineer, which include the following aspects of mineral finance: (1) The technical aspects of mineral or coal property or oil and gas reservoir evaluation which provide the basis for estimation and forecasting of revenues and costs. (2) Estimation and forecasting of costs and prices in a inflationary economic environment. (3) Calculation of cash flows which model .. , the investment in minerals, coal or oil, and gas. Such models require assumptions as to the timing of cash flows, escalation of capital and operating costs, base prices, and escalation, the tax regime, royalties, division of profits and the economic aspects of loans. (4) The role of discount rate in the economic analysis of an investment which requires consideration of the opportunity costs of the firm, cost of capital, risk premiums. (5) Risk analysis including application of the concepts of conditional net present value, expected value, and risk preference as well as the application of the techniques of sensitivity and simulation. (6) Selection of application criteria for in- vestment decision making. (7) Capital structure with particular reference to the effect of debt financing. (8) Consideration of sources of funds utilized by the minerals industries. (9) Long-range planning including portfolio analysis. This section is limited to principles, methodologies, and trends in mineral investment, finance, and long-range planning in the United States with a perspective from the year 1984. Consideration of the key concepts is supplemented by case examples of investment risk analysis and financial structure. Important factors affecting mineral investment evaluation during the 1980s include volatile metals prices, cost inflation, and the introduction of techniques requiring the computer and its capacity for improved technical and economic analysis into the hands of those who know most about the industry. The personal computer is replacing the calculator on the desk of the individual analyst and is rapidly becoming a required tool for the study of engineering and economics. Examples of change brought about by the micro-computer include greatly improved techniques of cost estimation, wider application of the computer for project analysis, computer graphics, reserve estimation, geostatistical analysis, mine design and other techniques that capitalize on the ability of the computer to handle

Jan 1, 1985