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By J. W. Town

This report summarizes the results of laboratory investigations conducted by the Federal Bureau of Mines to obtain hydrometallurgical information on the dissolution of mercury sulfides from ores, flotation concentrates, and pure mercuric sulfides. Statistical methods were used to design the experiments and evaluate the resulting data. Studies demonstrated that cinnabar is readily soluble in sodium sulfide, partly soluble in potassium sulfide, and essentially insoluble in ammonium sulfide. Additions of sodium hydroxide or potassium hydroxide to sodium sulfide solutions increased mercury extraction slightly; when either was added to potassium sulfide or ammonium sulfide solutions, mercury extraction was equal to that of sodium sulfide. Tests at the Albany Metallurgy Research Center showed that sodium sulfide would completely dissolve chemically pure mercuric sulfide, more than 95 percent of the cinnabar in 5-percent mercury flotation concentrates, and 60 to 90 percent of the cinnabar in low-grade ores. The double-leach tests showed that potassium sulfide would dissolve over 90 percent of the arsenic in mercury-arsenic products and 1 to 10 percent of the mercury; then sodium sulfide-hydroxide solutions would dissolve 80 to 90 percent of the remaining mercury and 5 to 10 percent of the arsenic.

Jan 1, 1961

By M. King Hubbert

"The present large-scale use of energy and power by the human species represents a unique event in the billions of years of geologic history. Furthermore, in magnitude, most of the development has occurred during the present century. In the United States, the peak in the rate of petroleum production occurred in 1970 and that for natural gas is imminent. The peak in the world production of crude oil is expected to occur at about the year 2000 and that for coal production at about 2150 or 2200. For other sources of energy and power, water power, geothermal power and tidal power are inadequate to replace power from fossil fuels. Nuclear power, based on the breeder reactor and utilizing lowgrade deposits of uranium and thorium, has a larger potential than the fossil fuels, but it also constitutes a large perpetual hazard. The largest source of energy available to the earth is solar radiation. This source has a life-expectancy of a geologic time scale, is nonpolluting and is larger in magnitude than any likely requirements by the human s pecies. In consequence of the large supplies of available energy, the period since 1800 has been one of an unprecedented exponential industrial growth. This also has been accompanied by a world-wide ecological disturbance, including that of the human population. It can easily be seen that such a period of growth must be ephemeral in character and, in fact, is now almost over. One aspect of this transition from a state of exponential growth to a state of nongrowth is the present alarm over an ""energy crisis."" Actually, the world's present problems are by no means unmanageable in terms of present biological and technological knowledge. The real crisis confronting us is, therefore, not an energy crisis but a cultural crisis. During the last two centuries, we have evalved what amounts to an exponential- growth culture, with institutions based on the premise of an indefinite continuation of exponential growth. One of the principal consequences of the cessation of exponential growth will be an inevitable revision of some of the tenets of that culture."

Jan 1, 1973

By Valois R. Shea-Albin

An accurate assessment of the vertical stress on a coal seam at depth is important for mine design. Vertical stress calculation techniques presently available either are not sufficiently accurate or cannot handle complex surface topography. Therefore, the U.S. Bureau of Mines developed a computerized method to calculate vertical stress exerted on surfaces at depth that includes the effect of topography. Two input data sets are required: a digital elevation model containing topographic elevations and a coal seam file defining coal seam elevations at depth. Boussinesq's equation then quantifies the vertical stress resulting from topography. The computerized method was tested on a coal seam overlain by a complex topography where a vertical stress map encompassing several square miles was produced. Results show that depth mitigates the affects of surface topography, while the coal seam topography has a direct effect on the vertical stress. In comparison to the computerized method, the direct stress method overestimates stress under hills and underestimates stress under valleys. The largest difference between the two methods occurs under the steepest topographic relief. A limitation of the computerized method is that stresses cannot be accurately determined near an outcrop.

Jan 1, 2010

By Leo J. Vogel, E. D. Hummer, David J. Akers

INTRODUCTION An efficient refuse-disposal system is a necessary part of the modem cleaning plant. The large-scale refuse system and disposal area, engineered for the lifetime of the plant, has become more important due to the greater tonnages of refuse produced from increased quantities of mechanically mined and prepared coal. Laws and increased government regulations have affected the design and operation of disposal systems. THE EFFECT OF MINE AND PLANT OPERATION Refuse disposal starts at the mining face. The mining system, the type of roof support, the machinery used, and the degree of discipline at the face contribute to the amount and type of refuse that must be removed through the disposal system. Economies gained through modification of the mining system or mining machinery may be partially offset by increased dilution of the mined coal with impurities from associated rock formations. In some cases the change in the mining system and equipment has reduced the dilution. In all cases the ratio of impurities that must be removed from the raw-coal feed to the plant not only affects the maintenance and

Jan 1, 1979

By G. W. Murrie

A geologic study of the Mary Lee Group of coalbeds in the Black Warrior coal basin was undertaken to examine coal stratigraphy and determine regional trends and extent of the coalbeds. The area investigated encompasses 835 square miles in Jefferson, Walker, and Tuscaloosa Counties, Ala. More than 700 core logs were used to construct a structure map, coal, interval, and overburden isopachs, and cross sections. There is evidence that structure affected sedimentation. Coalbed isopachs indicate the Mary Lee Group was deposited in fluvial-deltaic and low-lying coastal plain environments. The Mary Lee coalbed is the only coalbed which is continuous throughout the area, commonly with two benches which have a combined thickness of 2 to 12 feet. The Mary Lee coalbed changes rank in the basin from high-through medium-to low-volatile coal. The methane gas potential of the Mary Lee Group coals is estimated to be greater than 1 trillion cubic feet. There is an excellent correlation between the orientation of surface cleats with those measured underground in the Mary Lee coalbed. The face cleats roughly parallel the axes of the area's folds and trend northeast-southwest.

Jan 1, 1976

By V. J. McSweeney

This paper is directed at interested parties outside the Beach Sand Industry : the scope is quite broad. The geomorphology described is a successful working hypothesis which guided the author during prospecting and pegging campaigns : the author is not an expert in this field. The test data used in the text, for illustrative purposes, is original and may constitute a contribution to the state of the art. The operation- al and design philosophy embodied in the text is personal and describes the author's methods : all practising exponents would differ in some degree amongst themselves on these subjects. In this paper, no criticism of any existing operation or brand of equipment is intended and names are used to maintain a real contact with the subject matter. The author believes that the operational and design techniques evolved in the Beach Sand Industry under continual duress, have a wider application in the mining industry. This glimpse of the Industry is intended to enhance the respect for the present and past members. Space does not permit individual acknowledgements.

Jan 1, 1982

By Thomas N. Walthier

This paper will review world trends that are increasingly restrictive of mineral exploration and mining throughout the Free World This is occurring in the face of projected huge increases in demand for mineral products Some of the impediments are direct and absolute; others are indirect, but nevertheless effective; still others represent merely hostile attitudes Many of the world governments have a reputation for lack of integrity in dealing with existing foreign investments within their borders, and consequently are quite uninviting places for new investments, especially in the capital intensive natural resources industry. Compared with even 35 odd years ago (and pre-World War II is not that long ago) there are few places left where private mining investments are both wanted and where investors are willing, to go. We shall begin with an analysis of conditions in the U. S., shift to neighboring Canada and Flexico, and then have a look around the world. As the world grows smaller for the private mining sector, the function of exploration, development, and operation is passing over to government. We'll conclude with a view of what this holds for the future

Jan 1, 1976

By Richard E. Thill

Engineering properties of rock are essential in most phases of mining from site reconnaissance through mineral processing. Review of the literature indicates, however, that property data is scarce for most coal measure rocks in the United States. The Bureau of Mines, U.S. Department of the Interior, has undertaken a wide-ranging testing program to provide more complete property data for coal strata in the U.S. coal basins. The property data are expected to have application in geophysical exploration, the development of pre- mining and hazard detection probes and instrumentation, mine design, engineering and rock mass classification, subsidence engineering, and ground control. This paper describes the comprehensive program encompassing in situ geological, geophysical, and geotechnical properties and laboratory determinations of acoustic, electromagnetic, physical, mechanical, and index properties and discusses results for 500 ft of coal measures at a minesite in the Northern Appalachian, Eastern Coal Province.

Jan 1, 1982

By Toby Mayo, Tassos Grammatikopoulos, Massoud Aghamirian, MARK FEDIKOW

The Zoro pegmatite project in east-central Manitoba occurs 20 km east of the historic mining town of Snow Lake. A composite sample (Master Comp) was prepared fromthree pegmatite zones within Zoro Dyke “D1” including the North, Central, and South Zones for mineralogical analysis and heavy liquid separation (HLS). The mineralogical examination was conducted on a subsample crushed to ca. P80 of 600 μm to determine the overall mineral assemblage, liberation of spodumene, and assess the potential recovery of spodumene by flotation. XRD and QEMSCAN results show that the sample consists of spodumene (10.5%), quartz (29.3%), plagioclase (29.0%), K-feldspars (21.3%), micas (5.1%), tourmaline (2.9%), and Fe-Mn-phosphates (0.1%). Spodumene is well liberated (88%), but also forms complex particles (7%), and middlings with quartz (4%). Liberation of spodumene increases from 81 in the + 600 μm to 95%in the − 106 μm size fraction. Liberation of quartz, feldspars, and micas account for 89%, 94%, and 83%, respectively. Electron probe micro-analyses and LA-ICP-MS showed that the average Li concentration is 3.7% in spodumene, 2196 ppm in micas, 1001 ppm in tourmaline, and 115 ppm in K-feldspars. Thus, spodumene accounts for 96%, micas 2%, Fe-Mn phosphates 1%, and both K-feldspars and tourmaline for < 1% of the total Li in the sample. The mineralogical data indicate the potential to recover spodumene by flotation with minimal Li losses due to other than spodumene carriers. Heavy liquid separation was conducted on the Master Comp which was crushed to − 6.4 mm, while the − 600 μmfractionwas removed fromthis test. The coarse fraction − 6.4mm/+ 600 μmwas subjected to HLS tests with eight heavy liquid-specific gravity cut-points (2.65 to 3.10 g/cm3). HLS indicates that it is possible to produce a high-grade lithium concentrate (close to 6% Li2O) after the rejection of iron silicates with magnetic separation.

Sep 16, 2020

By Walter L. Fisher

The public interest in the Alaskan situation is such that, with the consent of the President, I have concluded, at the request of the American Mining Congress, to make at this time a candid, if somewhat informal, expression of the views I have formed as Secretary of the Interior, under whose official supervision much of the administration of the Territory is now placed. Pressure of other matters imperatively requiring attention has prevented their presentation in as precise and comprehensive a form as I had hoped. The absence of the President from Washington has also prevented the submission to him of what I have prepared. I wish to say, however, that no one is more earnest than he in the desire to see a policy of prompt and wise development inaugurated in Alaska, and that the general policy contained in this address has been discussed with him, meets his approval, and will have his support. I have recently returned from an altogether too brief but nevertheless a most interesting and profitable visit to those portions of Alaska that are more immediately involved in the questions now under public consideration. Favored by extraordinary weather and the cooperation of steamship and railroad lines and the assistance of all of the governmental agencies, including the Revenue-Cutter Service, I visited every port in Alaska that seems likely in the near future to become an important entrance to the country. I examined all of the harbor and town sites which for this purpose have attracted any considerable public attention. I traversed the entire length of each of the three railroads that have been constructed in the Terri.tory and made a short trip from White Horse down the upper Yukon. Both before and during the journey I examined a mass of books, records,' and papers relating to the country and its resources. I had conferences with official committees representing the principal communities I visited and with numerous individuals, residents both of the coast and of the interi.or, and conferred with engineers, miners, prospectors, railroad officials, business and professional men.

Jan 1, 1911

By R. V. Higgins, H. C. Miller

"INTRODUCTION The development of methods for determining the total quantity of crude oil that a given pool could be expected to produce in the future and the well-spacing and drilling programs most likely to result in the recovery of the maximum quantity of oil at the minimum cost became problems of acute concern to American oil producers and petroleum engineers during the second decade of the twentieth century, The United States faced what seemed at that time to be a serious shortage of petroleum, and it appeared that the constantly increasing demand for petroleum and its products could not be adequately supplied. Undrilled prospective acreage, which until then had been plentiful, seemed to be getting scarcer, competition was increasing, the margin of profit to the producer was shrinking, and the need for developing constructive policies of conservation appeared paramount. As a result of physical and economic changes then taking place within the petroleum industry prompted by the seemingly uncertain future, accurate knowledge pertaining to the probable future production of oil wells and of oil lands especially was needed and greatly desired. Furthermore, the need for obtaining the maximum quantity of oil from known fields caused technical information - which up to that time had not been deemed essential to the successful and profitable operation of oil lands - to be sought eagerly. The need for technical information, such as methods for determining future reserves of oil and the rate at which the oil could be obtained under a specific program of drilling, was emphasized further with the passage of the Revenue Act of 1918, and oil producers with enough income to place them in the taxable class were compelled, for the first time, to report their taxable income 4/ to the Treasury Department."

Nov 1, 1939

MR. McKEEVER: I think we had to start some- where. The proceeds of the beltbuckles and hard hat stickers will certainly be a beginning in a scholarship for some of our young people. And maybe, you know we might even get one of them sometime to go to the University of Oklahoma. A few years ago the luncheon speaker for tomorrow, Brooks Mitchell, got a few of the mine presidents together and we spent a full five hours of just dedicated listening to Carl Terzian. We listened basically on three subjects: how to work with the media, how to work with image, and how to identify with our political systems and those who are in them. I remember that as one of the turning points in my perspective on how our system really works. This gentleman who will be addressing you today, Mr. Terzian, will be conducting about a three-hour session tomorrow. And it&apos;s a shame that our other activities will not allow some of the golfers to probably be there. Those of you who can come to the session tomorrow morning will find it most rewarding. A little bit later on we will also have a panel session. And I see all of the panelists are here except for Bob Golten, but I understand that he is registered. We should have a full afternoon session with Charlie and his panel. When we started working on this, we naturally went back to Carl Terzian to give us some guidance. If there is anything wrong with your session, it&apos;s my fault because he knows how these should be done and he guided us along the way. One thing that I am sorry, it wasn&apos;t his fault necessarily, is that Harry Reasoner will not be with us for lunch tomorrow. Brooks Mitchell is going to make all of the PR he can out of the fact that Harry got scratched and he got in place for him. Brooks gave me one comment along that line. He said, "Do you know what you get when you cross a gorilla with a computer"? Of course I bit on that. He said. "Well, you get a Harry Reasoner." A little over a month ago I was invited out to California to Woodbury University at Carl Terzian&apos;s insistence. I happened to be sitting by one of his vice presidents. It was a formal affair. We had to wear tuxedos and everything and Mr.Green was sitting there and he said, "You know," he didn&apos;t know who I was at that time, but he said, "You know Carl really didn&apos;t want this formal affair. Said he had a couple of friends coming from the coal mining industry and they wouldn&apos;t know what to do with tuxedos." So with that Carl, we will start this little session and it&apos;s your mike. MR. TERZIAN: Thank you very much Ira. Let me begin by expressing my appreciation to the men and women of the Institute for allowing me to be here. I&apos;m deeply concerned about my reputation, my image and don&apos;t want you to get the inference that I am responsible for Ira McKeever&apos;s image. Nobody could be responsible for that! But it is a great case in point that we all should be concerned about our images. I guess tomorrow morning from about 8:30. a.m. to about 11:30 a.m. we are going to do a? hopefully, a productive and very pleasant expertence for all of us in this growing field and great interest that people have in the area of image. I happen to be from Los Angeles. I have a national firm which has handled about 600 corporations&apos;, over the years through the areas of public relations,&apos; community, civic involvement all built around a strengthening and safe guarding our precious, free enterprise system. And the message that I hope to give you, as you will be eating your lunch today, is really not so much about the image of individuals but as the attitudes built on what Bill Banowsky

Jan 1, 1982

By Henry S. Washington

I. INTRODUCTION. DURING the last twenty years or so the chemical investigation of rocks has made great advances, and it is now generally recognized that a knowledge of the chemical composition is as essential as that of the texture or mineral composition-if not more so-for the proper classification of rocks and study of their origin and relationships. Rock-analyses have vastly increased in numbers and, what is of greater importance, in quality. New and improved methods permit of greater accuracy than was possible in the early days, and the list of chemical constituents frequently determined has risen from the seven or eight of the greater part of the nineteenth century to twenty or more. Indeed, rock-analyses with determinations of so many constituents are now commonly made by the chemists of the United States and Australia, while in Germany, Great Britain, France, and Italy the rarer constituents are determined more frequently than formerly. As a consequence of this modern, accurate work, it has been discovered that some elements which were formerly supposed to be rare are of wide-spread occurrence and are often present in considerable amount. The fact is further being developed that the elements tend to show certain relations of occurrence or abundance in connection with each other. This is a fact which is applicable to the rarer elements, and which also finds a broad geological and petrological expression in the recognition of petrographic provinces. We are beginning to obtain some definite, though as yet rudimentary, knowledge of the distribution of the elements among igneous rocks. Some of the results along these lines obtained by study of the vast accumulation of analytical data now available are well known to petrologists, while others do not seem to be so gener-

Sep 1, 1908

By Edward W. Parker

I. INTRODUCTION. AT the Seventy-sixth meeting of the Institute, held in New York, N. Y., February, 1899, I presented a, paper on this subject entitled, Coal-Cutting Machinery,&apos; which has become somewhat out of date, in view of the decade&apos;s development in this feature of the coal-minim industry. It should be explained that the present paper is limited to the use of mining-machines in bituminous mines. Practically all of the anthracite mined is ?shot from the solid," no undercutting being done. Anthracite-mining is therefore not considered in the statistics or other references. The statistical record as compiled by the United States Geological Survey shows that in 1898, the year preceding the presentation of my former paper, there were 32,413,144 short tons of coal undercut by the use of machines. In 1907 the machine-mined coal-product amounted to 138,547,823 short tons. In sympathy with the general decrease in coal-production during 1908, the output of machine-mined coal decreased to 123,183,334 short tons, but the proportion of machine-mined coal to the total output, nevertheless, showed an increase, from 35.1 per cent in 1907 to 37 per cent in 1908. In 1898 only 19.5 per cent. of the total product was undercut by the use of machines. The number of undercutting-machines in use in the bituminous mines of the United States has increased from 2,622 in 1898 to 11,144 in 1907, and to 11,569 in 1908. The total production of bituminous coal in the United States in 1908 was almost exactly double that of 1898, while the machine- * Published by permission of the Director of the U. S. Geological Survey. 1 Trans.. xxix.. 400 to 4,59 (1899).

Sep 1, 1910

By D. A. Reynolds, J. D. Davis

During early development of the blast furnace, Connellsville coke made entirely from Pittsburgh-bed coal proved to be an excellent fuel. The need for blending coking coals arose as the industry grew and it became necessary to carbonize coals having voking properties inferior to those of Pittsburgh coal Most coals carbonized today in continental Europe and this country are blonded: This practise has improved the quality of coke and permitted the utilization of coals that would yield inferior coke, if carbonized sepa- rately, The depletion of the world's better coking coals, which has been noted by leading coal technologists,2/4/wes accelerated during the recent war and. It is important, therefore, that reserves be evaluated and conserved. In the principal, steel-producing sections of this country, Pocahontas coals have been blended so extensively that the terms "low-volatile coking coal": and. "Pocahontas" have become virtually synonymous. Other low-volatile coals. have been used to manufacture metallurgical coke and will be used more extensively as, the supply of the better known and more accessible Pocahontas coals decreases. Recognizing the need for augmenting the supply of high-rank coking coals, the Bureau of Mines has included both low- and medium-volatile coals in its Survey of the Carbonizing Properties of American Coals, which was started with the cooperation of the American Gas Association in 1929. Twenty coals, 12 of low-volatile and 8 of medium-volatile rank, have been blended with high-volatile A Pittsburgh-bed coal, and five standard low- volatile coals have been blended with various high-volatile coals. Most of the results of carbonization tests of these coals and their blends have been

May 1, 1946

By Hooman Askari-Nasab, AHLAM MAREMI, EUGENE BEN-AWUAH

In oil sands mining, tailings are voluminous unwanted by-products generated from extracting the desired mineral from the mined ore. Dyke construction and backfilling activities require well-managed techniques to facilitate progressive reclamation at the earliest opportunity. This directly affects the sustainability and profitability of the mining operation. This research introduces a goal programming framework that simultaneously optimizes the (1) production schedule with limited duration stockpiling and directional mining; (2) dyke construction schedule; (3) size, shape, and location of tailings-cells; and (4) mining and processing production targets. The results show that in creating in-pit tailings-cells designs, decreasing the mining-cells volume and increasing the number of mining-cells improve the net present value of the operation due to increased operational flexibility. The model generated a uniform schedule for ore and practical tailings-cells designs for backfilling activities. Integrating tailingscells optimization into oil sands mine planning and waste management ensures the efficient use of in-pit mined-out areas required for sustainable operations.

Apr 14, 2021

By Bülent Erdem, Zekeriya Duran, Tuğba Doğan

The objective of this study was to evaluate the potential health risk associated with exposure of dozer operators to whole-body vibration. Measurements were made on 31 dozers used in different surface mines in Turkey. Predictions of adverse health effects of vibration were based on the standards BS 6841:1987, ISO 2631–1:1997, ISO 2631–5:2004, and the EU Vibration Directive:2002. Operators experienced high and comparable levels of vibration acceleration and dose during all dozer tasks: pushing the material (DOZE), moving forward (FORWARD), moving backward (REVERSE), and ripping (RIP). Specifically, DOZE, FORWARD, REVERSE, and RIP showed high potential of adverse health effects in terms of vibration dose according to the worst-case axis and vector sum criteria and a moderate adverse health effect for acceleration according to the worst-case axis criterion. Operators of large dozers were exposed to lower levels of vibration. However, no statistically significant relationship between vibration exposure levels and the propelling mechanism and the service time of dozers, operator experience, operator age, and ground type was found.

Jun 16, 2022

By P. O. Osifo, K. Premlall, X. Goso, R. H. Matjie, M. R. Mulaudzi, J. R. Bunt, K. Mphahlele

This study investigates the transformation of pyrolytic spent tyre-derived char and crumb rubber into high-performance activated carbon chars for industrial wastewater remediation. Utilising an in-house macro-thermogravimetric analysis system under an argon atmosphere, spent tyre-derived activated carbon char were synthesised via physical temperature activation and aqua regia demineralisation. Comprehensive characterisation using x-ray diffraction, Raman spectroscopy, and scanning electron microscopy, revealed a predominantly amorphous structure with nanoscale crystallites (~1 nm) and active surface functional groups. Proximate analysis confirmed that both crumb rubber and leached tyre crumb rubber with aqua regia derivatives achieved favourable compositions (ash ≈ 9.6%; fixed carbon ≈ 84%), comparable to commercial activated carbon (AC). At an optimal activation temperature of 850°C, the char of tyre crumb leached with aqua regia variant exhibited a significant surface area of 300 m²/g. Crucially, the tyre crumb char produced at 850°C variant developed a pore volume of 0.8 cm³/g—effectively doubling that of commercial activated carbon (0.4 cm³/g)—facilitating the sequestration of large organic molecules. In application tests using high-strength starch wastewater, char of tyre crumb leached with aqua regia and tyre crumb char, both produced at 850°C, achieved total organic carbon removal efficiencies of 60% and 50%, respectively, bridging the performance gap between waste-derived and commercial adsorbents. These findings validate waste tyres as a viable, low-cost precursor for industrial-grade adsorbents, offering a sustainable circular economy route for tyre valorisation and reduced industrial disposal costs. Future research will focus on kinetic modelling and the recovery of zinc from spent tyre-derived activated carbon char residues.

Mar 30, 2026

By R. A. Egen

The purpose of this book is to provide an indication of what good hoisting practice is and how it might be achieved. To this end the book contains discussions of equipment and inspection and maintenance procedures developed and used by mining people in striving for safe, reliable hoisting equipment. Most of this information comes from domestic practice; the rest is foreign, notably from Canada. Most things discussed have long proved their general worth, and others promise to; a few are beginnings. However, nothing is conjectural or theoretical; the practices described herein are in use somewhere in the mining world. The stress is on equipment in use; it is not a design-guidelines manual. Nevertheless, there are some sections dealing with design material since it may be of value in a maintenance/ replacement sense. Mine hoisting installations encompass such a wide variety of equipment and conditions that it is impractical to specifically cover them all. This book mainly treats conventional systems using conventional components with some discussion of the more common unconventional (special) systems in use. There is no recognized definition for a "conventional" mine-hoisting system. Herein the term means those systems most commonly used in daily operations for transporting men, materials, and product-electrically driven drum and friction hoists, with guided conveyances running in vertical or inclined shafts. Beyond this, what "conventional" means is probably best illustrated by the topics discussed.

Jan 1, 1975

By M. J. Lawrence

Independent natural resource Valuers are an essential link between miners and mineral explorers on the one hand and the finance industry on the other. Investors (and regulators) expect the mining and financial industries to be vigilant against the use of inappropriate methodology or use of illogical steps within the chosen valuation method. The Australian Corporations Law generally requires an Independent Expert Report to support mergers and takeovers (as well as for capital raising activities). The introduction of the VALMIN Code (1998) by The Australasian Institute of Mining as Metallurgy, has meant that such Reports, when prepared in compliance with it, are now much more comprehensible and reliable than before. This is because the key requirements of the Code are for transparency and materiality in the Technical Assessment and Valuation Reports prepared in connection with the transaction involved. Transparency is particularly important because it allows the reader to identify and understand the assumptions made to derive a value and to then form a view as to the reasonableness of the result. Even though many elements of resource asset valuation practice are undeniably subjective, there must be some basis of objective rationality to it. Where the reasoning is patently illogical or the inputs are chosen to achieve a particular result, the estimated value must be viewed as virtually worthless. Experience, qualifications, competence and repute are the hallmarks of a professional technical auditor and valuer.

Jan 1, 2000