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By Billy W. Osborne

The use or primary dross as a source for aluminum ion in the manufacture of aluminum sulfate offers opportunities for an inexpensive raw material. The aluminum sulfate industry in the US is a mature market with numerous small plants operating close to major users. The majority of manufacturers use either bauxite or aluminum oxide trihydrate as a source for the alum¬inum ion.. However, using process technology developed and patented by IWC, the oxides are removed from primary dross for use in manufacturing aluminum sulfate prior to metal recovery. This process offers the benefit of reducing costs for metal recovery. This paper discusses some of the methodology used in this process.

Jan 1, 1995

By M. G. Benz, J. F. Elliott

A new type of solution calorimeter has been constructed to measure heats of mixing, enthalpy increments, and heats of fusion, formation, and reaction at temperatures above 1000°C. With it, measurements hove been made of the partial molar heats of mixing joy tin in the Cu-Sn system from 0 to 13 at. pet Sn at 1127°C and fir nickel in the Cu-Ni system from 0 to 9 at, pet Ni at 1200°C. The integral molar heat of mixing for the Cu-Sn system is strongly negative with a calculated minimum value corresponding to the composition Cu3Sn. The integrnl molar heat of mixing for the Czi-Ni system is slightly positive at these temperatures. These integral molar values have been measured with a probable error less than 30 cal per g-atom at an atom fraction of nickel or tin equal to 0.1. The estimated probable error for the Cu-Sn system is approximately 450 cal for a measured heat of solution of approximately 9000 cal. For the Cu-Ni system it is approximately 700 cal for a measured heat of' solution of approximately 60 cal. A new type of heat of solution calorimeter was designed and constructed to provide a more accurate experimental method for determining heat effects at high temperatures, (T > 1000°C). With it, partial molar heats of mixing, enthalpy increments, heats of fusion, and heats of formation and reaction for metal systems can be measured directly. Previously it has been necessary to rely upon the use of the dropping calorimeter or the van't Hoff equation applied to equilibrium data for this information. For the most part equilibrium data are scarce and difficult to obtain in many cases, and it has been necessary to rely upon the "method of mixtures" for the desired enthalpy measurements. An earlier study1 provides a prototype for this work. The "method of mixtures" as outlined by K. K. kelley,2 "consists of dropping the substance under investigation from a furnace, with controlled and measured temperature, into a calorimeter operating at or near room temperature.'' In this manner the change in the total heat content (enthalpy) of the substance between the temperature of the furnace and that of the calorimeter is determined. In order to determine high-temperature heats of mixing, enthalpy increments, and heats of fusion, formation, and reaction, it is necessary to take the difference between two such measurements, one before and one after the occurrence of the enthalpy change being studied. The desired enthalpy change is then the small difference between two large numbers. Small errors in the large numbers are included as large errors in this small difference. It is this difficulty that must be avoided for accurate measurement of the desired functions. The procedure with the new solution calorimeter consists of dropping the substance under investigation from a furnace, with controlled and measured temperature, into a solution calorimeter operating in the temperature range of 1000o to 1200°C. Measurements in the range of 1200" to 1600°C are planned for the future. By selection of the composition and

Jan 1, 1964

By O A. Aladejebi, S Mitra, T Singh, D O’Dea, S, T Honey

Granulation of the iron ore blend and the additives is the foremost step in the agglomeration of iron ore fines to achieve a permeable bed during sintering, which is crucial for sinter productivity. This study investigated the granulation of four types of blends to determine the impact of granulation on bed permeability. The blends were granulated in a rotating drum at various moisture contents and their JPU permeability was measured at each moisture content in a permeability pot (diameter 95 mm and height 500 mm) at various flow rates. Several independent experiments were carried out to investigate the changes in permeability when mixtures of different particle size range (-1 mm and +1 mm) were introduced into a packed bed with a larger particle size range (-6.3 mm to +4.0 mm). The results revealed that the addition of particles in the -1 mm size range had a more pronounced negative impact on permeability compared to particles in the +1 mm size range. This can be attributed to the relatively higher energy losses (mainly inertial) associated with the presence of -1 mm particles in the mixture. The findings were used to quantify the granulation process based on the -1 mm particle size fraction in the granulated mix and their utilisation (denoted by UI-1 mm). For achieving optimal permeability in a specific blend, it was found that a UI-1 mm (utility index of -1 mm particle size) ranging from 0.82 to 0.92 was required. However, exceeding a UI-1 mm value of 0.95 resulted in weaker granules prone to deformation and led to decreased bed permeability. The study also showed that the UI-1 mm was highly dependent on the water addition per kg of -1 mm in dry feed and suggested adding ~80 to 110 mL of water per kg of -1 mm in dry feed to attain the best possible permeability. Additionally, the research proposed a mechanism involving the melting of granules at high temperatures and highlighted the influence of -1 mm particles on bed permeability during the sintering process.

Sep 18, 2023

By M. M. Fine

This Bureau of Mines report describes the theory, experimental procedures, and the results obtained to date in the development of the Bureau's process for magnetically roasting iron ores using scrap iron as a means of reduction. Since magnetic separation is an operational step common to magnetic taconite plants, the preliminary research studies emphasized only the novel magnetic roasting step. The studies included the use of automobile scrap, ferrous reductants such as borings and turnings, and prereduced pellets. Technical feasibility of the process was demonstrated both on a bench- and pilot-scale. Quality magnetic concentrates with recoveries of over 90 percent were obtained from a direct shipping ore containing 59.5 percent Fe and from fine grained semitaconites with about 30 percent Fe.

Jan 1, 1966

By Comfort Adams

WHEN this country went into the war, but two concerns, The Bethlehem Steel Co. and The Midvale Steel and Ordnance Co., knew how to make steel fit for great cannons and at these concerns there were relatively few men who knew the whole art. Fortunately, certain of these men put their knowledge at the service of the Government, and proceeded to instruct the metallurgists at the arsenals and at various steel works. The then chairman of the Engineering Division of the National Research Council, Doctor Howe, suggested that this work might be facilitated, and the number of effective gun-steel makers thereby increased, if a detailed description of the best practice could be written, giving the reasons for the various steps, and issued with the endorsement of a committee composed of those who were evidently the most competent authorities. It was thought that something would be gained by clarification of the subject, and something by the eminent authority' of the members of the committee. To that end, the Engineering Division appointed-a committee, consisting of the gentlemen whose names follow, to mention only those who retained their connection with it. At, this time there were serious difficulties in the manufacture for the Government, of aircraft and high-speed engine crankshafts, of certain ordnance forgings, and of shells for both the Army and Navy. This Committee was asked to study and report upon these, with a view to betterment of practice. There were indications that the source of some of the difficulties went back to the melting of the steel and the production of the ingot. Hence, the committee first studied steel melting and ingot production, in order to guide the wartime manufacturers to an even larger percentage of useful production from the steel initially melted.

Jan 1, 1922

By J. Morris

Petro-diesel is a common collector for fine coal froth flotation but partitioning of diesel range organics (DROs) in process streams has not been widely studied. Preliminary research suggested that under normal dosing schemes total residual DRO in process waters should be limited to the sub-ppm water-soluble fraction (WSF). Further, polycyclic aromatic hydrocarbons (PAHs) should partition proportionately with DRO. The purpose of this study was to confirm these findings in laboratory flotation tests. Total DRO and specific PAHs were measured in tailings and concentrate streams, and coal recovery and ash rejection were tracked. Results show that concentrate waters consistently had higher DRO than tailing waters, and DRO in both streams generally increased with increasing diesel dosage. DRO again appeared to be limited to the WSF and PAHs tended to partition proportionately with DRO. Results indicate optimal flotation performance should generally coincide with minimal DRO partitioning to process waters. Under typical operating conditions residual DRO should not present an environmental concern; however, conditions should be avoided that allow significant overdosing of diesel.

Feb 23, 2014

By John E. Miller

In recent years there has been increasing concern in the mining industry over the availability and high cost of diesel fuel to support mining operations. Unit Rig & Equipment Co. has been deeply involved with the development and testing of the newest designs for trolley assist. Beginning in dune 1980, Unit Rig modified and commissioned six 156 metric ton (170 short ton) trolley assist haulage trucks at two mine locations in South Africa. Operating haulage trucks with General Electric GTA 15E/776 drive systems were chosen for the tests since this size of truck represented the majority of the population of large size haulage trucks and the greatest technical development problems. Test operations have proven the feasibility of equipment designs in actual operation and preliminary economic data has convinced the operators to proceed with planning to modify their entire mining operation to use trolley assist. The initial capital investment incurred for trolley assist can be recovered in a short period of time. Following this quick capital recovery, mines will continue to realize lower operating costs through increased productivity and lower diesel consumption.

Jan 1, 1980

By L. Muñoz, L. Steffen, W. Vilas

The emission of particulate material is one of the several parameters related to environmental control in mining operations near communities. Blasting is an event that generates and leaves a large amount of dust in suspension, which can cause discomfort to communities, generating complaints that can compromise the operational continuity of the mine. The proper management of these environmental impacts is a key factor to ensure a good relationship with the neighborhoods, making a responsible mining in harmony with the environment, giving sustainability to the mining business in the medium and long term. The main goal of this work is to present different techniques and technologies applied in a large-scale open pit mine in Brazil, with operations close to a community, to minimize the emissions of particulate material into the atmosphere. For this, different technical solutions were implemented. First, a non-conventional blasting technique was introduced that incorporates special charging and timing configurations, generating a first upper layer that serves as a blanket to contain a second, higher-energy lower layer. An optimal stemming was also defined in order to minimize ejections and maximize cratering, using the scaled depth of burial theory as well as video and fragmentation analysis. In addition, changes were made in the timing between decks (to guarantee a minimum time between layers) and between holes (changing the initiation point opposite to the free face). Finally, additional measures such as humidification of the bench, use of a wind vane to identify wind direction and the construction of a physical barrier between the mine and the community were implemented as additional mitigation measures. By applying the above techniques together, in some specific zones of the mine, it was possible to considerably reduce the ejections generated by blasting versus conventional blasting without the above measures, which was demonstrated in the field with dual blasts trials. Additionally, it was possible to achieve a vibration reduction in the community of ~30%. This work demonstrates how, by applying these technical solutions, it was possible to minimize the dust and vibrations generated by blasting allowing this operation to do sustainable mining

Jan 1, 2024

To the members of The South African Institute of Mining and Metallurgy We have audited the annual financial statements of The South African Institute of Mining and Metallurgy set out on pages 357 to 366 for the year ended 30 June 2002. These financial statements are the responsibility of the Institute?s Council. Our responsibility is to express an opinion on these financial statements based on our audit. Scope We have conducted our audit in accordance with statements of South African Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. An audit includes: ?examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, ?assessing the accounting principles used and significant estimates made by management, and ?evaluating the overall financial statement presentation. Audit opinion In our opinion, the financial statements fairly present, in all material respects, the financial position of the Institute at 30 June 2002 and the results of its operations and cash flows for the year then ended in accordance with South African Statements of Generally Accepted Accounting Practice. Auditors 26 July 2002 Council?s approval of the annual financial statements The annual financial statements for the year ended 30 June 2002 set out on page 357 to 366 wereapproved by the Council on 26 July 2002 and are signed on its behalf by:

Jan 1, 2002

By N. W. Xu, M. D. Wei, F. Dai, B. Li

"Chevron notched samples achieve general acceptance for measuring the Mode-I (opening mode) fracture toughness of rocks. The cracked chevron notched semi-circular bending (CCNSCB) sample, which is developed from the International Society of Rock Mechanics suggested the cracked chevron notched Brazilian disc method, has recently received much attention. However, these chevron notched methods have not been fully mastered, some ideal assumptions based by their theories and formulas, such as the straight-through crack assumption (STCA), have not been verified detailedly. Fractures of CCNSCB specimens were numerically simulated considering different heterogeneities, geometrical and mechanical parameters. The results show that, the real fractures of CCNSCB specimens are never satisfied with the STCA. In fact, micro fractures not only occur in the notch tip but also the two chevron edges. Consequently, the crack front features prominently in a shape of parabolic curve, far from being straightthrough. Moreover, curvature of the crack front is only affected by shape of the chevron ligament. Cracks usually start from two sides of the notch tips rather than center of the notch width, and propagate deviating from the postulated fracture routes. These fracture mechanisms induce errors with the measurements, and thus more attentions should be paid to the real fractures of the chevron notched samples for measuring fracture toughness more accurately. INTRODUCTIONWith the increasing requirement of people for resources and energies, frequent rock engineering activities have been conducting, such as underground excavation, oil exploration and deep burial of nuclear waste. Many problems appear in rock fracture. Consequently, there are more and more attentions paid in rock fracture mechanics due to its broad application prospects for solving these engineering problems. Since Mode-I (opening mode) fracture is the most common failure mode in rocks, Mode-I fracture toughness is a primary parameter to predict rock mechanical properties in actual engineering, and thus its accurate values are necessary to the researches of rockburst, rock mass slope stability, rock cutting, hydraulic fracturing, tunneling, et al. Therefore, it is thus significant to evaluate and study relevant methods to obtain the reliable value."

Jan 1, 2015

By R. H. Moore, B. D. Breitenstein

INTRODUCTION The United States Uranium Registry (USUR) tissue program was funded in 1978 by the United States Department of Energy (DOE) through its Human Health and Assessments Division, and registrant enrollment began in 1980. It is operated by Hanford Environmental Health Foundation (HERF), Richland, Washington, with support provided by Pacific Northwest Laboratory (PNL).** The USUR tissue program is the first systematic effort to contact and gain assistance of workers occupationally exposed to uranium and to seek and study uranium deposition in human tissue. This paper describes the program objectives, populations selected for study, procedures for enrolling workers in the program, types of tissue to be studied, and analytical procedures to be used. PROGRAM OBJECTIVES The objectives of the USUR tissue program are to: 1) Determine the distribution and concentration of uranium, if any, in the tissues of occupationally exposed workers. 2) Compare bioassay measurements of exposed individuals with the results of analyses of tissues obtained at autopsy. 3) Seek evidence of histopathologic changes related to any uranium deposition that may be present. 4) Conduct analyses of whole bodies, when available, to obtain more precise data on the uranium burdens, if any, in the body and organs, and especially the distribution in parts of the body, such as the skeleton, that are not usually accessible for sampling. 5) Develop data that will assist in evaluating a) the accuracy of current in-vivo measurement techniques, b) the propriety of existing regulations, and c) the adequacy of current protection programs. SELECTION OF POPULATIONS FOR STUDY Selection of the populations for the USUR tissue program was based on studies of the United States Uranium Registry described elsewhere (0c81). Potential populations for study were quite varied because of occupational exposure to different chemical forms of uranium, different levels and eras of exposure, varying ability to identify populations exposed in the past, and the general interest and cooperativeness of the populations. Nevertheless, certain identifiable populations emerged that were both willing to participate in the study and likely to provide useful information. Among the targeted populations are individuals who were exposed to uranium prior to the existence of modern exposure standards. These individuals are presently being enrolled by the USUR. The reliability of concentration and distribution data and the demonstration of effects are more likely in such individuals than in those who have received less exposure. However, the targeted groups also include individuals who Have been exposed to permissible levels of uranium, and reference employees in uranium plants who have not worked with uranium. The lesser exposures are of immediate interest because of the rarity of heavy exposures under current standards. The sampling of potentially exposed individuals with negative in-vivo measurement results may serve to check the adequacy of in-vivo measurements in the detection of deposition. [ENROLLMENT PROCEDURE] The enrollment of participants follows three patterns. 1) Presently employed workers are enrolled by the cooperative efforts of USUR staff with the medical, industrial relations, and/or health physics personnel of the uranium facility. Volunteers may be enrolled by medical personnel at the time of their physical examination or by health physics personnel at the time of a bioassay or lung counting procedure. Follow-up after initial contacts with currently employed uranium workers is carried out by on-site personnel, but subsequent follow-up is the responsibility of the Registry. 2) Retired workers are contacted by mail, with a covering letter from their former employer supporting the principles of the study but leaving participation in the program on an entirely voluntary basis. 3) An alternate method of enrollment is to obtain a USUR autopsy consent after death from the next of kin. As part of enrollment in the program, permission is requested for access to the individual's medical and exposure data, and a short occupational history is filled out. The autopsy permission agreement signed by the individual is for an initial period of 5 years; the USUR ordinarily seeks renewal of the agreement upon its expiration. While this agreement provides

Jan 1, 1981

By Susanne Pignolet-Brandom

Fourteen samples of crushed Duluth Complex rock were characterized by the QEM?SEM automated scanning electron microscope image analysis system to evaluate the application of the system to mining waste rock characterization. The system can reliably distinguish the iron sulfides, the copper-iron sulfides and the nickel-iron sulfides. Calcite was distinguished from all other minerals except fluorite. The volumetric abundances were verified by comparing elemental abundances calculated using the QEM"SEM volumetric percentages and appropriate mineral compositions with elemental abundances determined by standard laboratory procedure. The pH and sulfate concentrations of rinse water from laboratory leach experiments correlated well with the mineralogical data.

Jan 1, 1989

By M. Trim, Y. Sun, D. Tepavac, A. Kumar

Configuration of Rozelle Interchange Project’s ventilation system required design and construction of some of the largest and tallest underground civil caverns attempted in Australia. The paper focuses on the technical challenges of designing these caverns within a heterogeneous, generally weak sandstone under highstress conditions while providing a construction sequence that would align with the contractor’s preferred techniques and schedule. Various construction techniques were investigated, but ultimately an observational approach relying on a construction sequence and specialized instrumentation met both the designer’s and contractor’s requirements. Relevant data obtained from excavations and the construction monitoring program are presented within.

Dec 1, 2022

By Robin M. Forbes. Jones, Suhas V. Patankar, Ramesh S. Minisandram, Jr. Carter, Kanchan M. Kelkar

"The nucleated casting process currently under development has the potential for production of Ni-base superalloy preforms that possess superior microstructure to product made by conventional casting processes, primarily for gas turbine applications. In this process, electroslag remelted (ESR) clean (i.e., free of ceramic inclusions) molten metal is conveyed via a watercooled copper Cold-walled Induction Guide (CIG) to a gas atomizer. The spray of clean metal droplets is then directly cast into a water-cooled crucible for ingot production. The microstructure of the resulting ingot preform evolves within the length scale of the individual droplets and is a function of the thermal state of the incoming metal droplets. This, in turn, depends on particle size, flight time and heat exchange with the gas phase.In the present study, computational models is developed for the analysis of the flow and heat transfer in the gas-metal spray system under axisymmetric and steady-state conditions. The gasphase flow is analyzed using an Eulerian framework and turbulent mixing within the gas phase is modeled using the two-equation k-e model. The dynamics of the metal particles is analyzed using a Lagrangian framework that involves calculation of the trajectories of the metal droplets. A two-way coupling is considered whereby the transport and heat transfer in the gas and the metal phases influence each other.The analysis is developed at two levels. The spray model performs a detailed calculation of the spray dynamics in the vicinity of the spray and is intended for predicting the temperature and mass flux distributions of the metal spray depositing into the mold. The chamber model enables prediction of gas flow and motion of metal particles in the entire spray chamber."

Jan 1, 2004

By Bengt H. Fetlenius

The "Pile Prediction Event" at the ASCE GeoInstitute's Deep Foundation Conference in February 2002 involved prediction of drivability and capacity of three 14m long, 324mm diameter, closed-toe pipe piles driven into loose to compact fine sand to slightly silty sand. Predictors were provided the results of two soil borings and three cone penetrometer tests, as well as type and model of hammer to be used for the pile driving. A total of 33 persons submitted predictions. As to penetration resistance distribution, many predictions were far below actually observed values. As to capacity in compression, the predicted values ranged from 270KN through 2,340KN with a mean of 1,070KN. As to capacity in tension, the predicted values ranged from 100KN through 1,650KN. The maximum load applied to the compression pile in the static loading test was 1,25OKN, at which no more reaction load was available. The reaction system for the tension test failed early in the test. CAPWAP analysis on End-of-Driving blows showed capacities at the end of the driving for the push and pull piles of 670KN, and 710KN, respectively. No restrike tests were made. Additional CPT soundings indicate that the pile driving had densified the soil. Static analysis and calculations from the CPT indicated that capacities ranged from 1,000KN through 2,000KN. The paper presents the data and discusses the various methods of determining pile capacity and addresses influence of set-up Lessons useful for future similar events are indicated.

Jan 1, 2004

By Lennart Hedlund

There is today a long and well-documented experience of the use of Boliden "Kaldo' technology for treatment of various feed matedals. The process is In commercial' operation in the Boliden Mineral's Rönnskär plant In Sweden for treatment of copper scraps and lead concentrates (In campaigns). This plant was built In 1976 for treatment of lead dusts from the copper plant but later modified to take other raw materials. Boliden's Kaldo techr:lology Is also In operation since 1991 for treatment of low-grade copper scraps In Enlrlsorse's plant In Porto Marghera (Venice), Italy. The plant is producing 25 000 tons of blister copper ,per year. The Kaldo furnace Isa high :Intensity smelting unit, where several successive treatment steps can be done In the same vessel. The furnace can be totally enclosed to protect the working environment, and the small off-gas volume can easily be dedusted. Input materials can vary over a very wide range, the products will be a dump slag with low (0,5%) copper and lead contents and black copper or blister copper. The dust from the process can be used for zinc production. A new development is autogenous smelting of scrap in a Pierce-Smith converter, implemented at Compagnie Générale d' Èlectrolyse du Palais in France.

Jan 1, 1995

By Raymond M. Stateham

Microseismic noise rates and slope movements were measured in an unstable area along the north wall of the Tripp-Veteran pit, Kennecott Copper Corp., Ruth, Nev. Low-noise, wide-band microseismic geophones were located at various points in the wall, and the change in distance across open fractures, resulting from instability, was determined by repeated measurements between fixed points set on each side of the fractures. The microseismic noise rate increased and decreased with corresponding increases and decreases in the rate at which the fractures opened. The microseismic noise rates and changes in width of the fractures show excellent agreement, and the two types of measurements complement each other in monitoring the progress of pit wall failure.

Jan 1, 1971

By Shankar S. Hegde

In many areas of the United States much of the most readily minable coal is nearing depletion, while at the same time, increased national attention is being given to coal as a major alternate energy source. If some of the thinner, more erratic, deeper and lower quality coals, which comprise the great bulk of U.S. resources, are to be mined efficiently and economically, greater attention must be devoted to careful planning of mines and to preparation facilities. One of the cornerstones to careful and successful mine planning is precise knowledge of coal thickness and areal distribution, roof and floor quality, and seam quality. Data on which this knowledge is based are obtained from various borehole techniques and, in some cases, seismic methods. Despite the many technical innovations that have been made in acquiring subsurface data, little attention has been given to the problem of systematic storage and retrieval procedures of the data and assembling them in a form that can be used for various computer mapping programs now available. (See Bilter and Martin, 1977; Bryant and Zobrist, 1977 and Farrell and Wherry, 1978). The purpose of this paper is to describe a series of user oriented programs developed over the past five years which are specifically designed for precise logging of rock core, accurate storage and retrieval of this data, correlation of seams between logs, tagging seams, computer assisted data posting of maps and preparing maps and profile sections for report illustrations. The entire system stresses increased precision and speed for a series of operations which are now largely manual, time consuming and prone to error.

Jan 1, 1980

By M. R. Khalesi, S. Bellec, C. Bazin, D. Hodouin

Batch grinding tests conducted on a gold ore indicated that gold is not randomly distributed within the size fractions of the ground ore. Since gold leaching performances were found to be dependent of the size of the gold carrying particles an integrated gold ore grinding-leaching simulator should incorporate a method to predict the gold size distribution of a ground ore. The paper describes the results obtained from batch grinding tests showing the non random distribution of gold within the size intervals of a ground ore and the initial developments of a grinding model to predict the gold size distribution in a batch grinding product.

Jan 1, 2011

By Stephen Zorn

INTRODUCTION The process of financing mining projects in developing countries has changed greatly in the past 15 years. New methods of financing, notably the use of syndicated Eurocurrency project loans, have appeared, and direct equity financing by transnational mining corporations has become less significant. These changes are of particular importance to developing countries which have many mineral deposits still awaiting development, or even discovery. If major new mines are to be financed, host governments will need to obtain more sophisticated information than has hitherto been widely available as to the various sources of finance currently available and as to possibilities for innovative approaches to financing, such as the combination of several different kinds of financing in a single package. This paper reviews the major sources of mining finance potentially available to developing countries and highlights those problems in obtaining adequate financing that developing country producers have begun to experience in the last few years and that are likely to persist through the 1980s. Section I surveys the major types of mining finance; section II reviews specific financing problems, including (a) the withdrawal of the transnational corporations from developing countries, (b) inflation and the size of new projects; (c) developing country indebtedness, and (d) competition among projects in different countries. SOURCES OF DEVELOPING COUNTRY MINING CAPITAL1/ There is a wide range of financing mechanisms which are potentially available to developing countries with economically viable mining projects., Moreover, these financing mechanisms have not been fully exploited by developing countries, and more aggressive pursuit of financing by the governments of these countries may well reveal greater possibilities in respect of any particular project than may initially have appeared. However, virtually all the funds available from these sources are available only to projects which meet the standards of viability acceptable to lenders and others in the business community. If a project does not, for example, promise to generate a discounted cash flow rate of return of at least 15 per cent on total funds employed, or if it does not appear likely to generate sufficient cash flow in the early years of production to cover debt service requirements with a comfortable margin in reserve, most of the sources of financing will not be available. Only where a government has its own financial surplus (as in the case, for example, of the industrialization program of the Saudi Arabian government) can it effectively undertake projects which do not satisfy the definition of economic viability that is accepted at any given time by the worldwide financial community. Internal Sources In Developing Countries Internal financing capacity in developing countries is restricted to a relatively small number of countries - typically those large enough to support a well-rounded industrial sector, in which mining is only one of a number of dynamic industries. While there are large mining companies in certain other countries, the ability of such companies to finance new projects (or even, in some cases, to generate the cash necessary to maintain existing levels of production) is highly problematical. Within developing countries, the possible sources of internally-generated mining finance are the following: (1) state-owned enterprises; (2) private capital; (3) the banking system, and in particular those financing agencies that have a special involvement with the mining sector; and (4) direct budgetary appropriations.

Jan 1, 1985