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By E M. Wightman, C L. Evans

A recent survey of mineral processors undertaken as part of the International Mineral Processing Council (IMPC) Education Commission identified mineralogy as one of the key skills required for mineral processors (the other key areas being comminution, flotation, physical separation, sampling and extractive metallurgy). Past experience in a number of operations has shown what can be achieved when the data outputs from mineralogical tools are coupled with people with the right skills who can transform the data into actionable information. This paper reviews what has been done successfully in plant operations over a period of more than four decades and gives examples of a range of applications with both long and short-term objectives. The examples demonstrate the usefulness of mineralogical data – both basic and complex – in optimising mineral processing operations, whether the data are applied in a simple analysis or in more complex modelling. Similarly, the examples show the range of options available for operations to access the mineralogy information they need – through in-house experts and equipment based in centralised technology centres, through on-site equipment and experts or through external laboratories and consultants.The examples from industry highlight the huge potential benefit of including mineralogy as an integral part of operational best practice and raise the question of why more operations do not utilise what should be readily available data. Successful application of mineralogical data requires skilled people to generate relevant data of the required quality, together with skilled people to interpret the data (this may be the same person). And, as in any project, corporate recognition of the value of this approach to best practice is required to ensure continuing support. With fewer university courses providing courses in process mineralogy to undergraduate mineral processing engineers and chemical engineers, there is an increasing lack of knowledge about what mineralogical information is needed, how to get the required data and, equally importantly, how to turn the data into useful information.CITATION:Evans, C L and Wightman, E M, 2018. Understanding minerals in mineral processing – the basics and beyond, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 363–376 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By A. O. Sfriso

"Numerical modelling is becoming universal in rock engineering practice. Most applications focus on the prediction of failure loads of 2D problems, where the numerical models are useful extensions to analytical methods and experience-based design criteria. For 3D problems and problems where the assessment of serviceability indicators – displacements, ground-structure response, etc. – are of importance, the selection of the constitutive models themselves and the implications of the selection of material parameters may have a very heavy impact on the reliability of the model outcome and its predictive capability.This paper overviews basic common aspects of constitutive equations used in practical rock engineering and summarizes some challenges that are frequently observed when reviewing numerical models performed for routine problems in rock engineering. INTRODUCTIONNumerical methodsFrom a philosophical perspective models, either analytical or numerical, are idealizations of a perceived reality. For us engineers, models are just tools we use to guide our judgement and understanding of the problem in hand. When dealing with problems in rock engineering, we resort to a wide range of techniques:1. Closed form solutions like confinement-convergence methods for circular tunnels: these methods satisfy equilibrium and compatibility requirements at the cost of a crude simplification of the material behavior and geometry;2. Limit analysis methods, like bearing capacity formulas: lower bound methods satisfy equilibrium but sacrifice compatibility, and upper bound methods do the opposite. Material behavior must be simple, geometry admits limited freedom;3. Limit equilibrium methods, like method of slices for slope stability: they satisfy restricted forms of equilibrium, do not satisfy compatibility requirements, require simple material behavior but have a much greater flexibility on geometry;4. Numerical methods, where a mesh is employed to discretize the problem geometry: when properly formulated, these methods satisfy equilibrium and compatibility requirements and give reasonable approximations to the behavior of very complex geometries and construction sequences. Very little restrictions remain on geometry and material behavior, but the cost of calibrating the material parameters can be very high."

Jan 1, 2015

By Rami Abousleiman, Gabriel Walton, Sankhaneel Sinha

"Although conventional coal mine designs are conservative regarding pillar strength, local failures such as roof-falls and pillar bursts still affect mine safety and operations. Previous studies have identified that discontinuous, layered roof materials have some self-supporting capacity. This research is a preliminary step towards understanding these mechanics in coal-measure rocks. Although others have considered broad conceptual models and simplified analogs for mine roof behavior, this study presents a unique numerical model that more completely represents in-situ roof conditions. The discrete element method (DEM) is utilized to conduct a parametric analysis considering a range of in-situ stress ratios, material properties, and joint networks to determine the parameters controlling the stability of single-entries modeled in two-dimensions. Model results are compared to empirical observations of roof-support effectiveness (ARBS) in the context of the coal mine roof rating (CMRR) system. Results such as immediate roof displacement, overall stability, and statistical relationships between model parameters and outcomes are presented herein. Potential practical applications of this line of research include: (1) roof-support optimization for a range of coal-measure rocks, (2) establishment of a relationship between roof stability and pillar stress, and (3) determination of which parameters are most critical to roof stability and therefore require concentrated evaluation.INTRODUCTIONRecent studies on pillar design have suggested that the assumptions utilized in traditional methods such as tributary area theory (TAT) (i.e. overburden has no self-supporting capacity, infinite pillar array, and CHILE material properties) are invalid in many geo-mining conditions (Esterhuizen, Mark, and Murphy, 2010; Frith and Reed, 2017). Although TAT is conservative with respect to pillar loading, and mine fatalities have steadily decreased since 1990, roof-falls and pillar bursts still occur and injure hundreds of miners per year (Mark, Pappas, and Barczak, 2011). Even though large-scale global mine failure has not occurred in a US coal mine since 2007, the mechanics of global and local stability as governed by the relationship between geologic parameters, mine geometry, and engineering design are still not well-constrained.Numerical methods are a highly effective tool that can be used to gain further insight into these relationships. When using such an approach, calibration to existing empirical relationships is imperative to ensure that numerical model results are realistic. In this study, we utilize the discrete element method (DEM) approach in Itasca’s Universal Distinct Element Code (UDEC v. 6.0) (Itasca, 2010).DEM accounts for explicit separation and contact of individual deformable blocks (Jing, 2003) and captures how discontinuities can affect system behavior. Discontinuous and anisotropic rockmass properties are typical features in coal-measure rock which contain various horizontal (bedding) and sub-vertical (joints) fractures depending on their depositional environment, diagenesis, and historic and current stress states."

Jan 1, 2019

By K E. Mudzanani, T A. M Msagati, D T. Maiga, T T. Phadi, M R. Letsoal, B M. Chabalala, S W. Limani

This paper addresses critical environmental, health, regulatory and scientific concerns related to gold mining activities in the specific area of Barberton, Mpumalanga, South Africa. The paper thus calls for informed decisions to be made by the authorities to safeguard both the environment and people’s health. The novelty of this study is based on its comprehensive nature of the simultaneous assessment of both cyanide and potential toxic elements (PTEs) in tailings, while taking into account their composition variability over time. By combining these aspects, it is then possible to provide a holistic understanding of the contamination risks associated with mining tailings and thus justify the need for regular monitoring and supervision to ensure compliance against regulatory limits. Additionally, this paper considered investigating the dynamic nature of tailings, which are subject to changes in their chemical composition due to exposure to weathering by various agents. In this study, the determination of weak acid dissociable (WAD) and free cyanide in tailings was performed using a validated method employing the South African Council for Mineral Technology (MINTEK) Laboratory Cynoprobe. The PTEs in tailings were determined by an inductively coupled plasma optical emission spectrometer (ICP-OES). The results revealed that the tailings contained primarily substantial amounts of PTEs, including Fe (87 566 to 37 800 mg/L), Cu (271 to 110 mg/L), Mn (2100 to 680 mg/L), Ni (400 to 390 mg/L), Zn (180 to 68 mg/L), Cr (645 to 510 mg/L), As (450 to 128 mg/L), and Pb (up to 35 mg/L). The cyanide concentrations in tailings varied between 0.20 mg/L and 0.26 mg/L for free CN (with a mean of 0.23 mg/L in water leaching), 0.23 mg/L to 0.28 mg/L for free CN (with a mean of 0.25 mg/L in alkali leaching), 0.24 mg/L to 0.35 mg/L for WAD CN (with a mean of 0.28 mg/L in water leaching), and 0.31 mg/L to 0.39 mg/L for WAD CN (with a mean of 0.35 mg/L in alkali leaching). The measured concentration of cyanide and the PTEs was compared to the minimum permissible levels enforced by the South African Department of Water and Sanitation (DWS) and the Water Research Commission (WRC) regulations that govern the disposal of hazardous constituents into the environment. Additionally, it was observed that the concentrations of contaminants in the tailings exceeded the acceptable minimum limits for hazardous waste exposure, posing risks to the environment and human health.

Apr 16, 2024

By Omid Marzoughi

Chromium has a wide range of applications, including as an alloy addition in various steels and also as a corrosion resistance coating. Carbothermal reduction of chromite ore (FeCr2O4) in a submerged arc furnace is an important industrial process for extracting chromium, but the energy consumption is excessive. It is suggested that one area for future research is the low temperature carbothermic solid state reduction of chromite to produce an intermediate product, which can subsequently be upgraded to ferrochromium. In this regard, a thermodynamic model has been developed to investigate this process and the effects of temperature, carbon additions and ore composition on the recovery of chromium and the grade of the ferrochromium, have been studied. Further development of the model may allow it to be applied to the simulation of other processes for the recovery of chromium from chromite ores.

By John L. Rich

A New Field for the Mining Industry A new field for the mining industry is in prospect. This is the recovery of the petroleum which has been left in the ground in the older oil fields whose yield has declined until they are no longer profitable to operate in the ordinary way. The fact that an oil field has reached the economic limit for operation by pumping does not necessarily 'mean that the oil has ? been exhausted. In many such cases not over one-fifth, or even one-tenth, of the total oil content of the field may have been taken out when this stage has been reached. This means that there exists a large reserve of oil which can be recovered by whatever process best takes advantage of the natural conditions under which the oil occurs. Mine drainage is one of the processes by which this oil may be recovered. Its relative importance will depend partly on the ingenuity and wide-awakeness of mining engineers, and on mining capital. The opportunity is undoubtedly at hand. In order that we may be in a position to judge the possible advantages of mining methods for the recovery of this oil, I have reviewed, on the following pages, the methods now in use, and have discussed the physical conditions of the reservoir rocks in which the oil is found, and the suitability of the various recovery processes, in use or proposed, in the light of these reservoir conditions.

Jan 1, 1927

By William R. Hess

Volcanic ash, although a little-used Kansas resource, is available in forty counties with estimated, reserves of more than 20 million tons. It was first produced in Kansas in the early 1900?s but not until the early 1920 is did it become an important abrasive material. Total production to date is estimated at 2 million tons, the major use being as an abrasive in scouring compounds and soaps, additional uses include ceramic glazes, an additive in cement, and a filler and stabilizer in hot mix asphalt for paving. Unrecorded tonnages have also been used in construction of black-top (macadam) roads. From 1916 through 1944, Kansas ranked first among the states in volcanic ash production; peak production was about 52, 000 tons in 1923. Since 1945, production has steadily declined, primarily because materials other than volcanic ash are now being used for abrasives; only two producers operated in 1964.

Jan 1, 1965

By B E. McCarthy

Red Dome Mine was a highly complex gold copper operation developed over a number of phases between mid-1986 to October 1997. With only three years of production ahead at any time, a proactive practical approach to mine closure was necessary. In 1989 the Domains Concept to life-of-mine planning and mine closure was created as a response to the proposed changes to legislation.The Domains Concept, a relatively simple idea developed to integrate mine closure during production at Red Dome, has been broadly adopted by both government agencies and industry in the intervening 20 year period. Over time the author has observed that the concept has been poorly applied, misunderstood and in some cases even misrepresented. As a consequence, the potential opportunities from applying the concept, including the optimisation and minimisation of life-of-mine costs, mitigation of long-term financial liability exposures and building credibility with the general community, have been missed.This paper examines the many benefits, advantages, applications and perceived barriers to developing and integrating a fully costed life-of-mine plan. Integrating the Domains Concept early in the project, within the operational budgeting, allows the production of a meaningful and useful document, representative of a whole life-of-mine, cradle to grave, with measurable rehabilitation and closure outcomes when the concept is used to full effect.The Domains Concept serves to optimise cost-effective, whole of mine, life cycle planning which provides beneficial outcomes for the community, significantly mitigates legacy issues and contributes to the attainment of compliance and sustainability principle objectives.CITATION:McCarthy, B E, 2014. The domains concept – 20 years on retrospective, obstacles and opportunities for effective life-of-mine implementation, in Proceedings Life-of-Mine 2014 , pp 621–636 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By J Zhang, R Dimitrakopoulos

A two-stage stochastic mixed integer non-linear program is formulated for a mining complex to optimise strategic and tactical plans. The objective is to find the near optimal decisions for a mineral supply chain in the context with uncertainties in both ore supply and the commodity market (price and demand). The endogenous spot price in the commodity market and long-term sales contracts are considered in the formulation of the mining complex’s optimisation model and an ad hoc heuristic is developed to deal with the throughput – and head-grade-dependent recovery rate in processing plants. Numerical results indicate that the proposed heuristic is effective and efficient in numerical tests. Based on the proposed model and heuristic, a long-term contract design strategy is proposed for making decisions on the contract price and strategic investments. A shadow price based method is also proposed to evaluate the existing mining schedule.CITATION:Zhang, J and Dimitrakopoulos, R, 2014. Optimising a mineral supply chain under uncertainty with long-term sales contracts, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 25–32 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By James V. Thompson

ENGINEERS from industrialized countries are frequently called upon to examine mining operations in primitive areas and make recommendations regarding mechanization and modernization. They often set forth with self-confidence, knowing full well that all that is needed is their experience and several shiploads of mining machinery, and at times they mentally provide the answers before the problems have been clearly stated. In primitive areas it is absolutely essential that the examining engineer spend enough time at the site to acquire a thorough understanding of what is being done now and why it is done the way it is. The objective here is to state in simple terms some of the problems that may be encountered, in- as much as solutions, if they can be found at all, will differ with each experience.

Jan 8, 1958

By IPMI Educational and Scientific Foundation

It is with great pleasure that we announce the availability of this fourth issue of the IPMI Journal, a publication of the International Precious Metals Educational and Scientific Foundation. This digital peer reviewed publication has been created as a vehicle for the sharing of technical information related to the science and technology of precious metals. Since 1976, the International Precious Metals Institute has championed the exchange of information of critical importance to the precious metals scientific and commercial communities through its various communications vehicles. This has included instructional videos, annual conference symposia, special topic committee meetings, regional seminars, and professional and student achievement awards. Due to the breadth of important topics related to all aspects of precious metals, it has been the vision of the IPMI to provide a publication available to the general public that would become a key source of pertinent topics containing high quality publications by experts in their fields of study. Historically, the IPMI has attracted world renowned experts in many fields (including Nobel Laureates Henry Taube, Ei-ishi Negishi, Robert Grubs, Professor Ben Feringa, and David MacMillan) in the dissemination of discoveries, inventions, and industry proven practices. Such information has a total value greater than the sum of its parts as seemingly unrelated innovations from distinct focus areas can be adapted to solve problems. Because of this important characteristic of information exchange, we have decided to create a digital journal, available to the general public, that will not only communicate state of the art discoveries and sound practices, but will also review historical communications from the IPMI’s archives that have value and use even in today’s environment. On behalf of the members and leaders of the IPMI, we hope you will find value in this new publication.

Dec 1, 2023

By J. Ita, F. Malekzadeh

"Multi-scale simulation in coupled fluid flow- geomechanical systems is a computationally efficient method for numerically solving large poroelastic systems. When using multi-scale methods, care must be taken in ensuring consistency when information is exchanged between systems that have a different discretization. Here a method is presented which provides consistency between the pore pressure being calculated on a fine scale fluid flow domain and upscaled to the coarser scale geomechanical domain and the pore volume change being calculated on the coarse geomechanical domain and down-scaled to the fine fluid flow domain. Central to this process is the characterization of the mechanical properties of the poroelastic system at both scales.Another advantage of the method presented here is that it is applicable to hydraulically disconnected but laterally drained (i.e. multi-porosity) layered systems as well as hydraulically connected, layered systems. Thus it can be used in geological situations where thin shale streaks or hardpans impede flow between laterally extensive, hydraulically conductive units. This is significant as the pressure evolution of such a hydraulically disconnected, laterally drained system can be very different than a hydraulically connected one as shown here. INTRODUCTIONA multi-scale treatment of fluid flow and deformation is a key enabler when simulation of poroelastic phenomena is limited by computational resources. As the spatial domain of the geomechanics model is usually larger than the fluid flow model, it is desireable to use a coarser discretization in the geomechanical model compared to the fluid-flow model. This type of multi-scale simulation requires a consistent up-scaling of pore pressure from the fine scale fluid flow model to the coarse scale geomechanical model and down-scaling of pore volume change from the geomechanical model to the fluid flow model (see Figure 1)."

Jan 1, 2015

By BUREAU OF MINES

This report is submitted in accordance with provisions of the Synthetic Liquid Fuels Act of April 5, 1944 (30 U. S. C. 321-325, as amended), which require that: "The Secretary of the Interior shall render to Congress on or before the first day of January of each year a report on all operations under this Act." Owing to the broad scope of the content and the diversity of interests represented, the Annual Report for 1954 has been divided into two separate publications. Each is being published by the Bureau of Mines as a Report of Investigations, and the respective titles follow: R. I. 5118, Part I - R. I. 5119, Part II - 011 From Coal. 011 From 011 Shale. The introduction, identical in both reports, summarizes research progress in 1954 under the entire Synthetic Liquid Fuels program. A free copy of either publication may be obtained by writing to the Bureau of Mines, Publications Distribution Sec- tion, 4800 Forbes Street, Pittsburgh 13, Pa. The R. I. number and title of the publication desired should be indicated.

Mar 1, 1955

By BUREAU OF MINES

This report is submitted in accordance with provisions of the Synthetic Liquid Fuels Act of April 5, 1944 (30 U. S. C. 321-325, as amended), which require that: "The Secretary of the Interior shall render to Congress on or before the first day of January of each year a report on all operations under this Act." Owing to the broad scope of the content and the diversity of interests represented, the Annual Report for 1954 has been divided into two separate publications. Each is being published by the Bureau of Mines as a Report of Investigations, and the respective titles follow: R. I. 5118, Part I - R. I. 5119, Part II - 011 From Coal. 011 From 011 Shale. The introduction, identical in both reports, summarizes research progress in 1954 under the entire Synthetic Liquid Fuels program. A free copy of either publication may be obtained by writing to the Bureau of Mines, Publications Distribution Sec- tion, 4800 Forbes Street, Pittsburgh 13, Pa. The R. I. number and title of the publication desired should be indicated.

Mar 1, 1955

By Xiong Tong, Jiushuai Deng, Yingbo Mao, Lingyun Huang

Ammonium carbamate has been used as a reagent for the leaching of copper from the copper oxide ore found in the Honghe state, Yunnan province, China. In order to find the optimal conditions for the leaching of copper from this copper oxide ore,the effects of several processing parameters, including the concentration, time, temperature, particle size and stirring intensity have been investigated. The results of these optimization experiments showed that the leaching rate of copper reached up to 72.76% under the following conditions: liquid-to-solid ratio of 10:1, ammonium carbamate concentration of 2.5mol/L, leaching temperature of 45 °C, stirring speed of 300rpm, a reaction time of 1.5 h and 85% by weight thereof passes through a sieve having 0.074 mm.

Jan 1, 2015

By L. J. M. Smits

A theoretical equation is developed describing membrane potentials of shaly sands as a function of the cation-exchange capacity per unit pore volume of the rock and saturating water salinity. This equation is based on the same simple physical model as that employed earlier7 describing the electrical conductivity of shaly sands. Experiments conducted with NaCl solutions showed that the equation is obeyed, except in the case of saturated salt solutions where minor deviations were observed. A possible explanation is given for this discrepancy. As the clay content and the porosity of shales may vary appreciably, shale membrane potentials also vary. It was found that membrane potentials of shales can be calculated accurately with the aid of the same theory. Consequently, changes in membrane potentials can be accounted for by simple measurement of cation-exchange capacities per unit pore volume of both shales and shaly sands. Charts are given to facilitate interpretation of the electrochemical part of the SP in terms of cation-exchange capacities and the salinities of mud filtrate and formation water. INTRODUCTION A spontaneous potential (SP) log is a record of the way in which the electrical potential of a sonde varies as it passes down a borehole. Such variations frequently reflect rock texture, e.g., permeable beds intercalated in an impermeable series often are indicated by a sharp change in potential. Nowadays it is recognized that SP logs may be interpreted in terms of formation-water salinity and formation shaliness. The four sources of the SP are illustrated in Fig. 1. El and E4 represent streaming potentials generated by the flow of mud filtrate through mud cake opposite permeable formations and through shale, respectively. An extensive review of the literature on the evaluation of these streaming potentials is given by Lynchl and will not be discussed here. The remaining part of the SP generally is called the electrochemical potential, which is divided into two parts: a membrane potential across the shale (E3, Fig. 1) and a membrane potential in the permeable sand at the diffusion boundary between formation water and mud filtrate (E2, Fig. 1). It was found by wyllie2 that the membrane potential across the shale, E3, is the most important contribution to the electrochemical potential, the shale acting as a semi permeable membrane. When the sand is clean it does not influence the diffusion process, so E2 equals the value of the so-called liquid-liquid junction potential observed when the two solutions diffuse freely into each other. When the sand contains clay, however, this interferes with the diffusion process and affects the diffusion potential generated. The greater the proportion of clay, the stronger this effect will be. Wyllie,3 Doll4 and Poupon et al.5 took this effect into account theoretically, starting from a physical

Jan 1, 1969

By J Pan, G Qiu

In this paper, an analysis is made of the present situation in the Chinese steel industry and its demand for iron ores. It is shown that the demand for iron ores has been growing substantially with the rapid development of the steel industry all over the world, especially in China. However, the iron ore market is currently in the situation where supply exceeds demand due to the economic crisis, with more investment in mines and less output of steel for several years ahead all over the world. Gigantic pressure is confronting the Chinese steel mills due to the too high and irrational price of iron ores. It is time to return the price of iron ores to a normal position much closer to their value. More attention has therefore been paid to developing low-grade and complex iron ore resources in China due to the irrational price of imported iron ores. More innovative mineral processing processes have been developed to tackle these complex resources. A systematic introduction to the development of beneficiation processes for low-grade iron ores is provided, including upgrading low-grade siderite, limonite, micron sized haematite and magnetite resources.

Jan 1, 2009

By M. K. McCarter

Surface mining applies to extraction of mineral resources from water and sediments of rivers, lakes, seas, and oceans; from solutions circulating through broken rock and soil; and from rock and soil excavated from the earth. Surface mining is responsible for the majority of mineral production in the United States and a substantial portion of the world?s total production. This section deals specifically with extraction methods which employ mechanical processes in a relatively dry environment to free minerals from the earth. The following section, Section 15, deals exclusively with aqueous methods. With recognition of the importance of reclamation in all activities which temporarily disturb the earth?s ecosystems, it is appropriate to classify mechanical extraction methods as either deferred reclamation or concurrent reclamation. Deferred reclamation is necessary when the shape and logistics of the excavation require that it remain open throughout the productive life of he project. Upon exhaustion of economic reserves, the opening is then reclaimed in a manner consistent with public safety, environmental acceptability, and land use policy. Methods employing deferred reclamation are commonly referred to as open pit or quarry mining. Metallic ores, industrial minerals, and coal are all extracted using open pit methods. Typical examples are provided in Chapter 14.1.

Jan 1, 2008

By Douglas W. Fuerstenau, Pradip Pradip

The design and development of selective flotation collectors has been the key to the remarkable success of flotation in beneficiating complex, difficult-to-process ores. Sustained research efforts in the field over the past hundred years have led to delineating the scientific basis of selective mineral flotation in terms of the crystal chemistry and the surface and colloid chemistry of minerals including their solubility, and the aqueous solution chemistry of added reagents. It is now well-established that the electrical double layer theory (EDL) is the most powerful means of quantifying the relative strength of mineral-reagent interactions in the case of nonsulfide minerals. We illustrate the utility and the power of the EDL in delineating the science underlying selective mineral flotation with the help of a few examples taken from our own work, in particular on the selective flotation of rare-earth minerals (bastnaesite) from associated semisoluble minerals (barite and calcite) using alkyl hydroxamate collectors and the flotation separation of lithium-containing minerals (spodumene) from associated alumino-silicate minerals with oleate (fatty acids). Both of these mineral separation systems are of contemporary research interest and of immense value to the industry today. Recent advances in utilizing molecular modeling computations, particularly in the context of quantifying the effect of crystal chemistry and the relative distribution of adsorption sites available on mineral cleavage planes, are also reviewed.

Production sharing and cost apportionment in joint ventures is commonplace in Australasia today and elsewhere. It is a recognised convention that, with the exception of a free carry situation, joint venture participants usually share the proceeds of the joint venture in direct proportion to their respective participating interest, after having first paid its respective cash calls, in advance, to cover the projectÆs ongoing operating and capital cost requirements.In surface mines, the parties simply pay their way and take their proceeds in this manner. In underground mines, the situation is no different, though treatment of capital, depreciation and tax may differ between the parties. A common feature in many cases is the creation of a joint venture entity to conduct the business. This entity then collects cash from the parties, banks it, employs the staff, runs the operation, provides reports and pays out the proceeds. This convention appears to be relatively simple in application. In practice, it has been known to be complicated in the situation where the participants take their product at the mine gate and undertake their own marketing and selling arrangements. A more complex situation presents itself where the joint venture tenement boundary with an unrelated third party straddles an economic deposit. In this scenario, both the joint venture parties and the third party may wish to mine the deposit, sharing some infrastructure and costs, yet taking their own product as it is produced. A case study outlining such a situation is presented in the paper, outlining firstly how the major cost categories were identified and treated for cost apportionment purposes. Secondly, a mechanism for the equitable apportionment of product is suggested. Finally, issues such as timing and cost reporting are dealt with, together with a checklist of points which should be considered when a similar situation might arise in the future.

Jan 1, 2002