Search Documents

By Mary Nelima Ondiaka, Kayode Henry Talabi, Oladunni Oyelola Alabi, Fatai Olufemi Aramide, Francis Gitau

Iron ore is essential in steel making; however, high-grade ores have diminished, making low-grade ores inevitable. These lowgrade iron ores need further beneficiation to upgrade the iron content. Currently, traditional physical and chemical methods are utilized and are not environmentally friendly. Bio-beneficiation techniques have emerged as a sustainable alternative for mineral recovery. This review delves into recent bio-beneficiation advancements for enhanced low-grade iron ore recovery using microbes. Research has revealed that bio-beneficiation methods such as bio-leaching, bio-flotation, and bio-flocculation have proven successful in iron recovery from ores. The bio-beneficiation process occurs in mild conditions using bio-reagents derived from microbes and offers a reduction of chemicals used in processing. Bio-beneficiation of iron ore potentially offers a relatively energy-efficient, cost-effective, and environmentally friendly method of maximum iron ore recovery. However, this review has identified a scaling-up difficulty in which a future approach for industrial-use applications is offered following a thorough sustainability assessment. Bio-beneficiation, using microbial processes, provides a viable avenue for maximizing iron ore recovery while tackling the constraints of dwindling high-grade iron ore resources and environmental sustainability.

Mar 16, 2024

By J. D. Miller, J. Hupka

Environmental applications of the air-sparged hydrocyclone (ASH) technology are presented. The original ASH design used porous sintered steel or porous polyethylene tubes as spargers. To diminish/prevent plugging and to reduce pressure head loss in the gas path a wire screen sparger and new hydrocyclone design have been developed, which allows for wide application of the technology to solve environmental problems and to be used as a chemical reactor. Field and laboratory trials have shown that the ASH technology might be preferred for the stripping of volatile organic compounds WOC) from contaminated water. The ASH has also been developed for absorption of SO2, toluene vapors, and for the recovery of cyanide.

Jan 1, 2005

By C. J. Cajka

Commodity agreements, trade liberalization, producer cartels, the New International Economic Order, price stabilization and access to supply are buzz words of the day. The international concern and dialogue on these concepts, often by a new breed of politically motivated experts, have generated intense interest in seeking an international solution to natural resource problems. While this momentum was maintained during the past year, the growing incidence of protectionist actions by several major nations has been eroding confidence in the global approach. The seriousness of current difficulties has created an urgent need for decisive action. At the same time, the limitations of the global approach have become more evident.

Jan 1, 1978

By Christian Maguire

Tunnel contracts in New York have in recent years had few bidders with the bids received being much higher than anticipated. Since 9/11, security has become a key issue in planning key infrastructure projects in New York. This is especially true in the case of large water supply tunnels. Striking the right balance between cost and security was the major factor in determining the best configurationfor the Kensico-City Tunnel. This paper outlines the efforts made to determine realistic probable bid costs for the tunnel contracts, and the innovative approaches taken to deal with security issues.

By A. Lee Barrett

"THE COAL INDUSTRY of the United States• and Canada has made great progress in recent years. Coal mining in •the old days represented one of the most arduous tasks for labour and industry, but over the years great progress has been made in reducing the effort required from labour. Also, the tonnage produced per man, the cost of the coal per ton, and the overall safety of the operation, have been greatly improved.Looking back over the past fifty years:, the era can be divided into four principal parts: (a) hand-loading, (b) track mining methods, (c) off-track mining methods, and (d) continuous mining. For many years, all of the coal was won by hand-mining methods. The first forms of mechanization •resembled the move from the horse •and buggy to the automobile. Early track mechanical mining methods were usually adaptations of the direct methods involved in hand-mining, with each improvement directed toward some specific process. A revolutionary development came about with off-track mining methods. The first efforts in this direction were provided by off-track mechanical loading machines, which loaded the cars •on track and differed from conventional track mining methods only in that the loading machines themselves operated on the mine floor. With the advent -of the shuttle car about ten years ago, true off-track mining came into being, and real progress in this direction began to be made.At the present time we •are at the beginning of a new era -.the era of continuous mining. There will be a period of development with some time needed before the system is generally applied throughout the industry, but -already enough •has been done to indicate rather dearly what the future holds in this direction."

Jan 1, 1953

By Reamy Joyce

CONDITIONS in underground mining are so variable that in approach-ing the problem of the economies effected by the use of pressure-treated mine ties and mine timbers, it is necessary to secure specific data for each mine. Facts must first be dug out to show the service life of untreated timber and the reason for its failure. Generally speaking, decay is the usual cause of failure, but in some mines mechanical destruction is an important factor. Occasionally the two causes combine to produce fail-ures, and it is difficult to determine positively which factor is responsible. In making comparisons, it is always necessary to start with the cost in place and for this reason there must be accurate information covering the labor cost of installation and the labor cost of renewals. When treated timber is used, it is necessary to know the specifications for the treating process, whether the timber was painted, dipped, treated open tank, or impregnated under pressure according to standard specifica-tions. It is also necessary to know the preservative used and the amount of the preservative that was retained by the timber after treatment. It is also well to know whether the timber was thoroughly air-seasoned before treatment or was green at the time it was treated. The kind of timber available, both untreated and treated, must be known and all of the factors listed above must be taken into consideration in the study of any problem.

Jan 1, 1939

By Bruno Miotto, Rômulo Faria, Juliano Tessinari

Water has become a scarce resource in quality. Companies in the ornamental stones sector use water intensively in their processes. Given the current situation, it is imperative to rationalize this feature that at first is related to the reduction of consumption, through no waste. Considering the importance of environmental preservation of this resource and also to comply with the legislation that governs the procedure for processing of ornamental stones, new alternatives should be available for the maintenance of current activities and promoting the development / growth of the sector on the principles of environmental sustainability and economic in future scenarios. The ornamental stones processing industries, especially for micro and small enterprises, require the implementation of a management program that optimizes the use of this feature, since the techniques individually processed operate with three basic processes dependent on water use: split blocks, polishing and finishing slabs. This technology requires a large volume of water resources and control measures involving operating recirculation water can minimize power consumption, making the company more profitable and sustainable. This is a survey of literature, associated with technical reports provided by partner companies and government agencies. This study aimed to the organization and provision of theoretical knowledge about the subject matter coupled with management practices, which may be reproduced or re-purposed in ornamental stones processing companies. It should be noted that the industry in question is lacking in technical expertise for the implementation of sustainable attitudes relevant to water reuse.

Jan 1, 2014

By H. H. Campbell

In the extending employment of open-hearth steel for structural purposes, it is a matter of prime importance that the test-piece shall represent with practical accuracy the characteristics of every portion of the heat from which it comes. In ordinary practice this homogeneity is assumed; but inasmuch as leading exponents of the revolving-hearth system have claimed that a reasonable uniformity could be obtained by their method alone, it may be pertinent to offer a few facts on the subject. The following heats made by the Pennsylvania Steel Company, for bridge-work, were tested by casting two four-inch ingots, one being taken during the first third and the other during the last third of the cast. Test-pieces obtained from these small ingots usually give results inferior to those obtained from larger sizes; but for purposes of cornparison they are equally conclusive. Many of the tests were made for experimental purposes within a few hours of the time of rolling, and before sufficient time had elapsed for the usual molecular redistribution necessary for the best results. All the tests were made on 3/4-inch rounds just as they left the rolls and without annealing; the results, therefore, are subject to the errors caused by variations in the diameter, and in the temperature at which the bar was finished. The tests from any one heat, however, were always nude as nearly as possible under the same conditions; and inasmuch as these data include the results of every heat so tested, and inasmuch as the errors could not by any chance always support any single theory, we may be certain that the unanimons testimony of the experiments indicates a valid conclusion.

Jan 1, 1886

By U. Sachse

This paper explores a systematic approach for mining decision-makers to use when faced with choosing which method to use for a specific rockpass length. The different excavation methods available in the broad South African mining industry are compared against a number of critical parameters, as applied to rockpasses of varying length. This approach is not meant as a definitive, prescriptive planning tool, but rather as a proposed approach to enable designers and planners to choose the best system to excavate their specific rockpasses

Jan 1, 2005

By J. R. Kish, J. Dabrowski

"The susceptibility to intergranular corrosion modes is a major technical issue preventing widespread utilization of higher strength welded AA7xxx extruded beam profiles, in the peak-aged T6 condition, in automotive bumper assemblies. A study was undertaken to evaluate the relative exfoliation corrosion resistance (ASTM G85-A2) as a function of joint design parameters, namely the base alloy composition, heat-treated condition and beam orientation after exposure to a cyclic acidified salt spray test. This paper documents the major findings extracted from this study.INTRODUCTIONBumper systems play a predominant role in the passive safety of an automobile, since they are one of the main structures for absorbing the collision energy in the event of an automobile crash. Heattreatable AA6xxx-series (Al-Mg-Si) and AA7xxx-series (Al-Zn-Mg) Al alloys, with relatively high strength, toughness, energy absorption, weldability and formability, make it possible to design costcompetitive bumper systems to crush in a controlled fashion. In this context, Cu-lean AA7xxx extrusions, such as AA7003 and AA7108, which exhibit higher strength than AA6xxx extrusion, such as AA6082, represent an attractive light weight material from which to fabricate bumper assemblies (Clausen et al., 2000; Pedersen et al., 2008; Chen et al., 2009).Arc welding is a key joining process for AA7xxx alloys within the transportation industry. A major technological issue preventing widespread utilization of arc-welded AA7xxx joints is the susceptibility to severe localized corrosion (Kent, 1970, Reboul et al., 1985; Holroyd et al., 1987). It generally occurs as exfoliation corrosion within a heat affected zone (HAZ) a few millimeters from the weld bead, or a type of stress corrosion cracking (weld-toe cracking), which initiates at the weld toe and propagates into the interfacial region between the weld bead and the HAZ (so called “white zone”). In addition to the micro-galvanic cell activity induced by the intermetallic compound constituent and strengthening particles present, there is strong evidence that macro-galvanic cell activity between the weld bead and base AA7xxx alloy may be playing a controlling role. Electrochemical profiles taken across fusion welded joints, in cross-section, during exposure to saline solutions suggest that a significant potential difference exists across the AA7xxx arc-welded joint (Shumaker et al., 1967; Grauer and Wiedmer, 1980; Tuck, 1985, Onoro and Ranninger, 1993). These studies consistently show that the HAZ and base alloy are more electronegative with respect to the weld bead (arc-welded with AA5xxx filler wire). Despite this initial important work, the majority of the recent corrosion research effort on welded AA7xxx alloys has focused on the performance of friction stir welds (Lumsden et al., 1999; Wadeson et al., 2006; Hatamleh et al., 2009)."

Jan 1, 2012

By Ihsan Berk Tulu, Ted Klemetti, Deniz Tuncay, Cicek Sena, Zhao Haochen

"Analysis of Longwall Pillar Stability (ALPS) and Analysis of Retreat Mine Pillar Stability (ARMPS) treat the pillar as a passive structure that is designed to carry overburden dead-weight. This dead-weight is calculated by simple rules based on the geometry of the mining, such as “tributary area theory,” “pressure arch theory,” and “abutment angle theory.” Although the pressure arch loading approach indirectly accounts for the generally stiffer overburden response of narrow and deep panels, it does not include the effect of specific geology of the overburden in load calculations. The relationship between successful pillar layouts and overburden geology can be incorporated into the load calculation by using the Ground Response Curve (GRC) approach.This paper introduces the GRC modeling methodology to investigate the effect of overburden geology and excavation geometry on load transfer mechanisms using seven field measurement case studies from four U.S. mines. It was also shown that the modeling methodology used to derive GRC in this study approximates mining-induced stresses and deformations within 5% of the values measured in the field.INTRODUCTIONFrith and Reed (2017) stated that current state-of-the-art pillar design methods ignore the overburden mechanics and use estimated dead-weight of overburden to compute pillar sizes. In the United States and around the world, overburden loading is typically estimated by simple geometric rules, generally with the tributary area theory (TAT). The specific overburden mechanics, structural competence of the overburden strata, geology, in situ stresses, and overburden/pillar interactions are typically ignored. However, these important mechanical responses affect the stability of the mine pillars and openings; therefore, they also affect the safety of the mine workers.Research conducted by the National Institute for Occupational Safety and Health (NIOSH) after the Crandall Canyon mine disaster (Esterhuizen, Mark, and Murphy, 2010) showed that small panel width-to-depth ratios and stiff-strong overburden result in a reduction of the observed pillar loads, much smaller than the TAT estimate. In fact, as a response to the Crandall Canyon disaster, Mark (2010) implemented a pressure arch loading approach into the latest ARMPS program to recognize the inherently greater stability of narrow panels at depth. The pressure arch approach is a first logical step to introducing non-tributary area loading into the practical ARMPS program. Although the pressure arch loading indirectly accounts for the generally stiffer overburden response of narrow and deep panels, it does not include the effect of specific geology and mechanical response of overburden in the load calculations."

Jan 1, 2019

By R. W. Hiteshue, R. W. Fridy, W. Kawa

A study of the production of coronene , a high - melting ( 440 ° C ) , highboiling ( 525 ° C) , polynuclear hydrocarbon , was made by the Bureau of Mines to determine the maximum yield obtainable by the hydrogenation of coal and coalderived materials . Experiments were made with anthracite and bituminous coals and with asphaltenes and centrifuged residue obtained from heavy oil produced in a pilot plant by the hydrogenation of a bituminous coal at 2,000 psi and 480 ° C. With anthracite , yields of coronene of 0.5 to 0.7 wt pct of moistureand ash - free coal were obtained at 6,000 to 8,000 psi , 700 ° to 750 ° C , and a residence time of 30 minutes . With bituminous coal , yields averaging 0.4 wt pct of maf coal were obtained at 6,000 psi , 800 ° C , and 30 minutes ' residence time . With asphaltene and centrifuged residue , yields of less than 0.02 wt pct of maf coal were obtained at 6,000 psi , 700 ° C , and 60 minutes ' residence time .

Jan 1, 1964

By T. Bauerle, G. Poplin, Z. Dugdale

"The issue of mine worker fatigue is as complex as it is understudied. Generally, worker fatigue lies somewhere on a continuum between psychology and physiology, which makes the measurement and management of it difficult with no easy solutions for operators or workers. Answers to even basic questions remain elusive—such as what is fatigue, how is it measured, and how can organizational resources reduce fatigue—and answers seem to present no single, clear path to action for the health and safety of the worker. This manuscript supplements the growing body of interest in the problems of fatigue in the mining industry by reviewing some of what is known about worker fatigue in general and in the mining industry in particular. The material covered here includes basic topics of the hows and whys of worker fatigue; an overview of fatigue models, findings, and evidence-based solutions with a focus on mining; and potential future directions aimed at mitigating miner fatigue. INTRODUCTION “It is recommended that the whole fatigue test problem be stated in a form the nature of which may be indicated by the following suggestions: that the term fatigue be absolutely banished from precise scientific discussion, and consequently that attempts to obtain a fatigue test be abandoned [emphasis added].” – Bernard Muscio, Pioneer Australian Philosopher and Industrial Psychologist, in a 1921 Report to the Cambridge Industrial Fatigue Research Board Fatigue presents several challenges for the mining industry. Depending on the specific occupation, daily work, or operational setup on any given mine site, mining jobs can have a fair amount of labor-intensive tasks mixed with monotonous and repetative duties. Combined with the long working hours and shift-work schedules of mining work, the prevalence of fatigue in mine workers may seem rather unsurprising. On the one hand, mining is certainly not alone in facing the challenge of addressing worker fatigue. Indeed, many of the characteristics above mirror the similarities of fatigue in other industries, such as health care, aviation, and security. To the extent that fatigue in mining acts like fatigue in any other industry, then any fatigue management applications, trainings, or interventions in existence can be borrowed from other industries and applied to mining in a “cookie-cutter” approach. On the other hand, some have argued that mining in particular is especially susceptible to increases in the prevalence of fatigue beyond the characteristics listed above due to the multifaceted combination of factors in mining environments associated with fatigue: dim lighting; limited visual acuity; hot temperatures; loud noise; highly repetitive, sustained, and monotonous tasks; shiftwork; long work hours; early morning awakenings; and generally poor sleep habits (Canadian Centre for Occupational Health and Safety, 2012; Legault, 2011). Legault (2011) in particular argues that it is the combination of these factors simultaneously that can make mineworkers particularly susceptible to sleep deprivation and fatigue in comparison to other industries where these factors are often not present alltogether. If fatigue looks and acts different in mining, as others have argued, more research is needed to determine if, how, and why worker fatigue might need to be managed differently in mining."

Jan 1, 2018

By J. S. Lasater

Resu1ts of experinmental measurernents of heat capacities and thermal conductivities of some typical porous rocks are presented. Measured heat capacities agree closely with va1ues calculated front known chenlical . compositions of the rocks. On the basis of this agreement, heat capacitir.7 of fluid-satttrated rocks were calc~ililted. Therrnal conductivities of the rock samples were measured under varioits conditions of fluid saturation. From these data therrnal dif-fvsivities were calculated. A significant variation of thermal diflusivity with trnlperature is indicated. Knowledge of the thermal characteristics of fluid-bearing porous rocks has become increasingly important with the development of thermal oil-recovery processes. Reliable thermal data for petroleum reservoir rocks are not available and approximate values are generally assumed for reservoir calculations. 'The effects of temperature, pressure and fluid saturation on thermal properties of porous rocks have not been carefully studied. The purpose of the present work was to measure and report the thermal characteristics of some typical porous rocks. A group of eight sedimentary rock samples, including limestone, shale, sandstone and silt-stone, was selected for the study. Properties reported include heat capacities, thermal conductivities and thermal diffusivities. The effect of fluid saturation on these properties was also considered. Determinations of thermal properties require precise measurements which are time consuming and difficult to reduce to a routine basis. Methods have not been developed for measurement of thermal proper-ties under conditions of pressure, temperature, and fluid saturation, which may be encountered in thermal recovery processes. As one approach to these problems, some preliminary work on methods of estimating thermal properties from other more readily measurable characteristics of the rock-fluid system is reported. The samples selected for the studies were oilfield cores from within, or closely associated with oil-productive zones. Descriptions of individual samples are given in Table 1. Clay minerals present in the samples were determined by differential thermal analysis (DTA). Quartz content was estimated from DTA cooling curves. For all but the thermal conductivity tests, a representative 200-gm sample of each core was disaggregated, thoroughly extracted in diox-ane and oven dried at 100°C. The cleaned and dried sample was care- fully split into appropriate portions for the several tests. Chemical analyses of the samples were obtained to permit calculations of heat capacities by methods which are outlined later. Resuits of chenlical analyses are given in Table 2. Heat contents of the test samples were measured by a Runsen-type calorimeter. The heat content of the unknown sample is measured relative to the known heat content of platinum. The apparatus is referred to as a relative error type because of the comparative measurements, and has the advantage of canceling systematic errors. Experimental results are reproducible within 0.5 per cent. A temperature base of 298.16 K is taken for heat content measurements. Measurements were made at five temperatures (260, 440, 620, 800 and 980° F). It was necessary to preheal the sample above the maximum experimental temperature to eliminate volatile constituents. Assuming the weight loss on pre-heat, ing was mostly water, a correction to the observed heat content was made to account for the water originally present in the sample. This latter procedure was followed in the determination of calculated heat contents as will be described later. The apparatus and the method of measure-

China's coal energy development, characteristics and relationships with atmospheric pollution are reported. Atmospheric pollution sources from coal combustion are analyzed. Some of the projects for clean coal combustion in the Shanghai area include use of industrial briquettes, investigation of coal combustion additives, and blending combustion of coal with industrial wastes. Coal is China's main energy source, and 80 percent of China's annual coal production is used in combustion devices. Coal-flue gases from the domestic stoves and industrial furnaces are the main atmospheric pollution source. China's atmospheric pollution is, in fact, the pollution of coal-flue gases. To 2000, in view of China's energy needs as a developing nation, the atmospheric pollution from coal combustion must receive our utmost attention.

Jan 1, 1994

By D. C. Austin, P. J. Hazell, A. A. H. Ameri, J. P. Escobedo-Diaz, D. East, M. A. Bevan, A. D. Brown

Additive Manufacturing (AM) has become increasingly popular due to the ability to produce components with complex geometries and properties. The efficiency of this manufacturing method is investigated in this paper by examining the mechanical performance of AM austenitic stainless steel 316L under different strain rates. Dynamic compression experiments were conducted by using a Split Hopkinson Pressure Bar (SHPB). Microstructural observations were performed by utilizing optical microscopy. The behavior of this material is compared against stainless steel 316L manufactured by conventional methods. The results show that theAM316L used in this study display a considerable difference in the mechanical properties compared with conventional stainless steel alloys.

Mar 1, 2017

By E. I. Gedgagov, A. V. Tarasov, V. M. Paretsky, A. D. Besser

"Hydrometallurgical technology and equipment have been developed in the Gintsvetmet Institute (Moscow, Russia) for processing of rhenium-containing alloys waste to produce commercial- grade metal products with recovery of all valuable components. The technology is based on waste treatment with hydrofluoric acid with subsequent decomposition with nitric acid at pH = 1 to 1.5 to ensure maximum degree of rhenium conversion to the liquid phase of pulp. Some experimental lots of ammonium rhenate and ammonium molybdate were produced at a pilot plant. The following main techno-economic performance values have been achieved when processing grinding residues (balance-based tests were conducted with a lot of SP-2 alloy waste) to produce ammonium rhenate of high purity, as well as tantalum-niobium, nickel-cobalt and tungsten-molybdenum concentrates: rhenium recovery of 92.3% into a commercial product from grinding waste; production cost of 170-210 US Dollars per 1 kg of rhenium in commercial-grade ammonium perrhenate taking into account its recovery; tantalum and niobium recovery of 75- 77% into bulk concentrate; nickel and cobalt recovery of 88-89% into a mixed concentrate; tungsten and molybdenum recovery of 88% to 91% into concentrate. Introduction During the recent years the use of rhenium has been increasing at a fast pace worldwide [1]. The growing prices for this refractory metal are an essential factor encouraging collection and processing of rhenium-containing wastes. Double-component waste, such as molybdenum- rhenium or tungsten-rhenium alloys can be readily decomposed and the process of rhenium recovery does not cause, therefore, any difficulties. The main separation of metals takes place at the stage of waste digestion with acid, because molybdenum and especially tungsten remain in precipitate in the form of hydrated oxides and rhenium reports in the liquid phase, from which it can be easily extracted by solid ion-exchange or solvent extraction techniques. However, most of rhenium is contained in super-alloy waste [2]. Such waste has different contents of valuable components, such as tantalum, niobium, molybdenum, tungsten, cobalt, nickel, chromium and other metals. The basis of all such super-alloy waste is nickel. Refractory metals in the super- alloy composition are in the form of metallized target-oriented eutectics, and due to this reason hydrometallurgical decomposition of such alloys is a difficult technological task."

Jan 1, 2008

By L. Heber Cole

Introductory During the past few years, salt (sodium chloride) strata have been encountered in western Canada in a number of wells, while prospecting for oil and gas. The ever increasing number of such wells points to the presence of a vast salt basin, the boundaries of which are at present unknown. This basin extends in a northwesterly direction from a point near the United States boundary south of Regina, crosses the Saskatchewan- Alberta boundary northwest of Unity, Sask., and continues with more northerly trend to Waterways and beyond. The beds, as encountered, appear to have a general dip to the southwest of between 10 to 20 feet to the mile and a pitch along the strike to the southeast. Thus one finds the salt strata at Waterways, Alta., at 600 feet below the surface (121 feet above sea level) whereas at Radville, Sask. south of Regina, the top of the salt is at a depth of 6,643 feet below the surface (4,430 feet below sea level). Whether this is a continuous salt basin or a series of separate basins is not yet known. We do know however, that in some of the well~ more than one salt horizon occurs while in others which normally should have encountered corresponding beds, the salt strata are absent. This latter condition, however, may occur only in the southern part of Saskatchewan, where a barren area seems to come in from the southwest. In the northwestern part of the basin, on the other hand, the occurrence of the salt strata seems to be more regular and continuous, and depths at which salt should be encountered in a drill hole in this part of the basin may be predicted with a fair degree of accuracy.

Jan 1, 1948

By John C. Robison

INTRODUCTION Sensitivity analysis is a means of gauging the impact of individual risks on a financing. Key risks can occur in three time periods: - Feasibility, engineering and construction phase; - Start up phase (usually through completion); - Operating phase (post completion). If a company has agreed to cover these risks prior to completion, then less attention will be paid to the sensitivity of the project in the first two time periods. Since the operating phase of the project generates cash for both operations and debt service and generally does not begin until two to six years after the loan is signed, it is wise to look at scenarios other than the projected "base-case" scenario in order to determine the project's capability to operate successfully under a broad range of probable future events. Lenders are compensated at a fixed spread over their borrowing base and generally are not compensated if the project is successful beyond expectation. They are also subject to the loss of principal plus funding costs if the project performs below expectation. Because of this, lenders establish sensitivities around the parameters of conservative projections developed in the project feasibility studies and the cash flows resulting from these projections. The initial cash flow projections should demonstrate the project's ability to meet cash costs, debt service requirements (principal and interest), and still have sufficient cushion to cover contingencies such as strikes, price fluctuations, force majeur situations, etc. (See Schreiber, Chapter 10). The selection of the level of sensitivity analysis to be performed is the result of both objective criteria, including probabilistic analysis applied to the technical parameters, and, of equal importance, subjective criteria applied by the analysts, especially with regard to the economic and financial parameters impacting the project cash flows. RISK SENSITIVITY Assumptions used in the cash flow projections should be realistic. Risks identified by the lenders should be identified and cash flows prepared to assess whether these project risks are acceptable. Typical project risks include the following (see also Chapter 9): - Sufficient reserves - quantity and quality - Product price - Production level - Operating costs - Availability of energy and supplies - Transportation and infrastructure requirements and costs - Interest rate - Completion risks - Tax level - Political risks - Cost over-run risks - Operator experience - Management - Technological risks - Environmental permits and risks - Foreign exchange risks - Insurance coverage - Equity of sponsors - Inflation rate - Capital expenditure during project life In order to see the effect on the cash flow projections, each risk should be analyzed for its impact on the cash flow generating capacity of the project. Sensitivities can be examined to see if the resultant cash flow projection will meet the lenders minimum credit standards. 1.Reserve Sensitivity In general, lenders will not assume the reserve risk. However, it should also be noted that lenders receive loan proposals in which reserves range anywhere from proven to possible. Sensitivities are not generally run for various reserve levels and reserve estimates are either considered acceptable or not acceptable by the lenders.

Jan 1, 1985

By Paul H. Earl

This paper discusses the evolution of a modeling methodology for explaining price behavior in the aluminum industry. Three generations are described, each utilizing as a foundation a microeconomic stages-of-processing approach. The second generation represents an improvement over the initial version, by incorporating more rigorous specifications of energy cost, and market strength (demand-supply balance) as well as endogenous treatment of market strength. International linkages across prices, costs, and markets, are the major extensions in the third generation. The discussion covers theoretical considerations, data problems and limitations, and model specifications. Simulation and forecasting properties of the models are also addressed.

Jan 1, 1979