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By Michael A. Gustafson, Fernando B. Sotelino

INTRODUCTION The degree of success of any new project will ultimately depend on two factors: (i) the underlying economic strength of the project; and (ii) how successfully the parties involved can coordinate their interests to establish a financing structure which indeed capitalizes on the project's inherent economic attractiveness. A project's underlying economic attractiveness is determined by its inherent comparative advantage in accessing the factors of production, combining these factors of production to create a product and marketing this product. Initially, the decision regarding whether to go ahead with the project - the go/no go decision - has to be based on its total ability to generate cash flow returns to project participants to compensate them for resources committed and risks undertaken. The extent to which project sponsors will actually benefit from the project's inherent economic attractiveness is fundamentally dependent on their ability to establish the long-term financing arrangement which best meets the objectives and constraints of each project participant and sources the most advantageous funding. The decision regarding the financing of the project, the "how-to-go" decision, is then an attempt to find the capital structure, consistent with market terms and conditions and sound financial management policies which will best: (i) match planned outflows with cash inflows; and (ii) maximize the return for project sponsors. This article makes use of a case study to illustrate the analytical process involved in dealing with the go/no go and the how-to-go decisions on a project. Though most commonly applied to project finance situations, the guideline described herein is equally applicable to other financing situations, such as leveraged buyouts and debt restructurings, where timely repayment of debt depends largely on the future cash flows to be generated by the entity being financed. Our case study is of a hypothetical expansion of an existing copper mining operation in Latin America. The company, Latin American Copper (LAC) currently has 147 million metric tons of proven sulphide ore reserves. The existing mine complex consists of an open pit mining operation and a conventional flotation plant with a processing capacity of 20,000 metric tons of ore per day. LAC sells copper concentrates primarily to Japanese custom smelters. The mine has been in operation for 5 years, fine copper production last year was 108,240 metric tons, and LAC currently has assets of $175 million and net worth of $135 million. Due to a recent increase in proven reserves, LAC is considering doubling the treatment capacity of its flotation plant to 40,000 tons per day, and expanding its mining capacity to meet the additional concentrator capacity (the "Project"). Project capital expenditures and incremental working capital have been estimated at approximately $210 million. The construction period is expected to cover one year, including a three-month start-up phase. The Project is to be funded by a combination of equity, senior debt, including both supplier credits and/or commercial bank term loans, and subordinated debt. LAC's shareholders are willing to commit a maximum of $50 million to the Project. A government development agency, which is also a minority shareholder, might be willing to lend approximately $40 million to LAC in the form of subordinated notes, depending on the ability of the Project to generate foreign exchange reserves. Commercial banks cannot be expected to offer loans with maturities longer than ten years. The Project is expected to increase the value of the firm because: (i) It will solidify the Company's position as a low-cost copper producer by taking advantage of economies of scale. As a result of the expansion, cash production costs are expected to decrease 7.0[c]/lb. and all-in costs 11.0[c]/lb; (ii) The potential earnings stream from the sulphide ore reserves will be realized

Jan 1, 1985

By Phillip R. Moyle

Voluminous deposits of commercial-grade phosphate occur in sedimentary strata in a 350,000 km2 (135,000 mi2) area of the middle Rocky Mountains of North America known as the Western Phosphate Field. The Permian marine strata that host the phosphate were deposited on the western margin of the North American craton and subsequently deformed, first by folding and thrust faulting of the Laramide orogeny, and then by Cenozoic Basin and Range block faulting. Carbonate fluorapatite is the primary phosphorus-bearing mineral. Organic matter is abundant in some strata, and both biogenic and non-biogenic pyrite are also present. Certain strata are enriched in several trace elements, especially in arsenic (As), cadmium (Cd), chromium (Cr), copper (Cu), molybdenum (Mo), selenium (Se), vanadium (V), uranium (U), and zinc (Zn). Phosphate has been mined from the Western Phosphate Field for nearly 100 years. Phosphate mining and processing constitutes the largest mineral industry of Idaho, producing more than $600 million in processed mineral value in 1997. Resource management agencies, phosphate producers, and others are concerned about the release of Se from phosphate mine wastes, especially at Maybe Canyon, and the potential effects that Se and other trace elements may have on the environment and on human health. U.S. Geological Survey (USGS) Mineral Resources Team scientists initiated a multidisciplinary study of the Permian Phosphoria Formation and related rocks in the south- eastern Idaho sector of the Western Phosphate Field in response to a request by the U.S. Bureau of Land Management (BLM). Studies to date reveal that Se is present in several phases, including native Se, and in an as yet unidentified form, possibly an organo-Se compound. Selenium is also present in pyrite and sphalerite. Selenium concentrations range from 1.2 to greater than 1,000 parts per million (ppm) in samples collected from exposures of the Meade Peak Phosphatic Shale Member of the Phosphoria Formation (Meade Peake) at Enoch Valley. The results suggest that Se concentrations vary spatially across strata and with depth, perhaps comparable to spatial variations of phosphate and organic carbon concentrations throughout the Western Phosphate Field demonstrated in previous studies. Some Se-enriched strata may be of adequate dimension to allow selective extraction during mining. Such units could be handled separately from the main ore process or waste streams and isolated in order to reduce the potential for release of Se to the environment

Jan 1, 2001

By J. P. Lesley

The Pittsburgh coal-region, if we regard the greatness of its extent, the picturesque beauty of its scenery, the salubrity of its climate, its relative situation on the Continent, the fertility of its soil, its unrivalled mineral wealth, and its magnificent system of natural transportation, is, perhaps, the most valuable spot on the surface of the planet. Unlike the mythical Paradise inhabited by one man and one woman, it swarms with an abounding population, not living on the free gifts of nature without care and without toil, hut expending its energies in unremitting labor, reinforced by the most elaborate machinery, in the production of everything which mankinds needs or desires; and unlilte the Paradise of story from which flowed the four great rivers of the world in opposite directions, its own four rivers How from the surrounding world into it, to constitute by their union the great highway water-course which divides the Northern from the Southern States. These rivers are the Monongahela, coming from the south, the Yonghiogheny from the southeast, the Kiskiminetas from the east, and the Allegheny from the north. Uniting at the great city of pittsburgh, they constitnte the Ohio, which flows northwest and west, and then south and southwest, toward the Mississippi. The Monongahela has been made navigable by a system of dams and pools the Allegheny was navigable in its natural condition; the KisKiminetas was made navigable by a State canal which has been vacated ; and the Youghiogheny remains unnavigable. Railroads supplement the deficiencies of the rivers, follow their hanks, and share in the transportation for which the waters are not sufficient. Railroads and rivers concentrate at Pittsburgh; other railroads cross the highlands to the east and west; and branch roads ascend the side-valleys and ravines to the mines on the uplands. The whole region is a scene of life; towns and villages dot its surface in all directions ; hundreds of gangways open upon the sides of all the valleys, and deliver coal to trains of cars which move beneath them at water-level; furnaces and rolling-mills abound; hundreds of oil-wells furnish a flood of liquid fuel to pipe-lines

Jan 1, 1886

By C M. Rebagliati, J G. Payne, K Roberts

The Pebble deposit, located in south-west Alaska, is one of the largest Copper- Gold-Molybdenum (Cu-Au-Mo) porphyry systems in the world, with a current resource of >8 billion tonnes which contain 73.7 billion pounds of copper, 87.1 million ounces of gold and 4.16 billion pounds of molybdenum. The Pebble deposit formed at ~90 Ma, during emplacement of subduction-related hornblende granodiorite porphyry intrusions emplaced into Jurassic-Cretaceous sedimentary, volcanic and subvolcanic intrusive rocks of the Kahiltna Terrane. The Pebble West and Pebble East Zones represent two thermal and fluid centres in a single large magmatic-hydrothermal system. The West Zone extends from surface to about 500 m depth, has thin zones of oxide and supergene mineralisation overlying hypogene chalcopyrite mineralisation, and is amenable to open pit extraction. The East Zone extends to at least 1700 m depth, is higher grade, occurs beneath an eastward-thickening cover of younger sedimentary and volcanic rocks, lacks oxide and supergene mineralisation, and is being evaluated for underground block-cave mining. Most Cu-Au-Mo was introduced with early K-silicate alteration and related quartz-sulfide veins. In the East Zone, a structurally-controlled overprint by advanced argillic alteration significantly increased Au and, to a lesser extent, Cu grades. Exploration potential at Pebble and its surrounding district remains high. Several other porphyry, skarn and epithermal deposits have been discovered in the district, but only limited exploration has been conducted. The eastern, higher grade part of the Pebble deposit remains open in several directions, with significant potential for resource expansion by ongoing, aggressive drill exploration. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

IT is generally accepted that for transport of coal underground from different collecting stations, the system of endless rope haulage with remote control is not only one of the safest and most economIcal, but is also one of the most'efficlent in dealing with output.When the coal measures lie in regular planes, the work of laying down such a haulage presents no difficulties. When, however, the dip of the measures is Irregular, or dislocated by faulting, the management is faced with the problem of constructing vertical curves of such a radius that the sag of the rope will correspond with the road bed, and thus obviate the danger of the rope rising and throwing the skips off the track.The direction of the main roads for haulage purposes being ascertained from the plan of the royalty to be worked, the faults or dislocations in the seam are determined for these roads with the greatest possible accuracy by means of bore holes from the surface.From the data thus obtained the haulage road can generally be so graded that the rope will keep on the floor during haulage operations, although the grades may in places be synclinal.The writer confesses that he knows of no accurate formula for calculating the sag of the rope under varying tensions and so determining the safe radius of the curve, and he had to depend upon past experiences under somewhat sImilar conditions.The accompanying sections illustrate a case where the writer has recently installed an endless rope underground approximately 5000 ft. in length, from the foot of a tunnel in which an endless rope delivers the output to the screening plant, and having to negotiate, first a 400-ft. downthrow fault, and later a 32 ft. upthrow.

Jan 1, 1927

By B. M. Munyungano

Rössing Uranium Mine operates a recovery circuit with continuous ion exchange followed by solvent extraction. Serious organic degradation problems were encountered during 1985/6, 2000 and 2005 in the solvent extraction plant. The preferential loss of the tertiary amine extractant was observed during the above-mentioned period. Previous investigations revealed that the tertiary amine was breaking down to nitrosamine, which cannot take part in the exchange reaction with U3O8. A reduction in the redox potential of the solvent extraction plant feed to below 500 mV halted this preferential loss. A lot of effort has been made to try and understand the actual mechanism for nitrosamine formation. Current understanding for the degradation is that formation is due to high nitrates on the strip side of the circuit emanating from nitrates from the precipitation process using ammonia. It is the current belief that pH lower than 3.7 on the strip side results in loading of nitrates onto the solvent. If oxidizing conditions prevail on the extraction side of the solvent extraction circuit, the tertiary alamine will then degrade into nitrosamine. This phenomenon is yet to be established and verified. It has, however, been established that the above process is brought about the following conditions ?High redox potential greater than 550 mV predominately caused by a high Fe3+/Fe2+ratio (4:1) ?Perception that if Fe2+<0.5 g/lit will contribute to high redox ?High concentrations of NO-3 in the conc eluate (feed to SX)/ammonium sulphate (NO-3> 4 g/l based on historic values) ?Presence of Mo as a catalyst ?Tests also have proved that the presence of nitrous acid in a concentration of 1 g/lat 550 mV leads to formation of nitrosamines from alamine.

Jan 1, 2007

By C. Musingwini

The South African platinum mining industry is using a number of different mining methods, including variations of the same method, to extract the narrow reef tabular platinum deposits of the Bushveld Complex. These mining methods fall into three broad categories, namely conventional, mechanised and hybrid mining. A question sometimes asked in the industry is whether mechanized mining methods are more efficient than conventional mining methods. An objective answer requires the methods to be evaluated against multiple criteria simultaneously, whereby each criterion has a relative degree of importance in the overall decision. The most efficient method is the one that scores highest on each criterion. However, some of the criteria can be conflicting, such as by increasing dilution the shaft head grade decreases. The analytic hierarchy process (AHP) methodology was selected for the study because it is used to solve problems of this nature. A survey was carried out to determine the relative importance of each efficiency criterion by drawing on the knowledge and experience of mine technical services and project management practitioners in the industry. Efficiency data for four different mining methods drawn from the Egerton (2004) study were used as a case study. The conventional mining method ranked as the most efficient mining method from the four methods considered. The exercise indicates potential for the AHP to be used in the South African platinum mining industry as a tool for selecting optimal layout designs, conduct regular evaluation of the performance of production shafts, or objectively evaluate line managers for promotion. The work described in this paper is part of the methodology used in a current PhD research study at the University of the Witwatersrand. Keywords: Analytic hierarchy process (AHP); multiple criteria decision analysis (MCDA); decision-making; conventional mining, hybrid mining, mechanized mining.

Jan 1, 2008

By M. Gangal, B. Paul

It may be seen from Maurer&apos;s survey (Maurer,l 1966) that most of the common methods used in rock drilling today depend upon mechanical loading of the rock. In order to predict the behavior of rock under an imposed system of stresses, it is necessary to have a valid criterion which delineates those combinations of stress which cause macroscopic rock failure from those which do not. Admittedly, the conditions under which brittle materials fracture depend very much upon statistically variable local effects such as inclusions, grain boundaries, minute imperfections, etc. However, it is extremely desirable to be able to predict fracture under complex states of stress by means of a stress-criterion of failure, where, for a given material, the effects of the other variables mentioned are incorporated into a small number of experimentally observable parameters. One of the most successful of these "macroscopic stress criteria" has been the Coulomb-Mohr theory 2,3 (also see Jaeger 4 and Terzaghi 5), modified by the addition of tension cutoffs (Paul 6). At first thought it might seem rather odd that a macroscopic theory is capable of predicting fractures which originate at highly localized random imperfections at an atomic level (or more likely at the level of individual mineral grains in rocks). However, Griffith7 showed that fractures originating near the tips of randomly oriented elliptical cracks lead to the macroscopic stress criterion of failure indicated in Fig. 1 (a). Fig. I (a) is to be interpreted in the following way: P and Q represent the maxi mum and minimum principal stresses (compression is considered positive) in a macroscopically isotropic body; fracture will not occur for any combination of principal stresses lying within the &apos;fracture curve&apos; shown, but

Jan 1, 1967

By Nigel Fung, J. D. Humphrey, R. H. Oats, J. H. Ingle

Production dozing of cast material is a cost effective method of improving dragline or mobile equipment overburden removal. Yet dozer productivity is reduced during the part of the process that requires the dozers to cut material away from the highwall. One solution is to use a hydraulic excavator to remove this material and throw it into a windrow for the dozers. By freeing up the dozers for more productive work the overall system productivity increases 25% and cost per yard is reduced by up to 10%. Dozer fleet sizing can be determined to match a specific production schedule or can be sized to balance with an excavator’s production.

Jan 1, 2004

By Robin Adams

After nearly five years of economic hardship, the world copper industry is, in our opinion, about to enter a period of considerable strength. This opinion is based on three main propositions, namely: 1) there are a number of reasons, both general-economic and industry-specific why copper demand is likely to perform significantly, more strongly in the 1980&apos;s than in the 1970&apos;s; 2) the virtual cessation of investment in new facilities, especially at the mine level, over the past years makes it physically impossible for capacity to expand as fast as demand in the mid-1980&apos;s; and 3) there is much less "excess" inventory available than most analysts believe. If we are correct in these assumptions, then the implication is that copper prices will climb up to, and possibly beyond, the cost-justified price level. Combined with general inflation, this suggests a price in excess of $2/pound by 1985 or roughly treble the 1978 average.

Jan 1, 1979

By C. A. Fleming, C. J. Ferron, P. T. O'Kane, D. B. Dreisinger

The platinum group metals (PGM's) are typically recovered by flotation, smelting of the flotation concentrate to matte, and matte leaching. Concentrates too low grade to be processed economically by the conventional process require a new treatment route. PLATSOL, a new pressure leach process, was developed for the Northmet deposit and dissolves in one step base and precious metals (PGM's and gold). Various options exist to recover all pay metals from the leach liquor. The preferred option to date involves a solid-liquid separation, followed by sulphide precipitation of gold and the PGM's, and copper solvent extraction using commercial solvent extractants. This paper briefly summarises the process and the effect of the main leach parameters. Application of the PLATSOL process to various feedstocks is also presented.

Jan 1, 2000

By D. R. Kalasky, J. M. Mutmansky, B. Kolonja

This paper considers simulation of truck dispatching systems using maximum expected production of the truck-shovel system as the measure of performance. Two analysis methods are utilized: multiple comparisons with the best (MCB) and the combination of MCB with the variance reduction technique known as common random numbers (CRN). These two techniques are compared via simulation experiments. Results show that the combined procedure of MCB with CRN is the superior tool to use to reduce the total number of replications needed to ensure the specified probability of correct selection from a number of systems. In this case study, MCB with CRN reduced the variance by 29% and the number of required replications by 48%. Also, the MCB with CRN procedure narrowed the confidence interval by 18%.

Jan 1, 1995

By D. Kump

The Bullfrog Mine is an underground goldmine that uses the underhand-cut-and-fill mining method. The portal was established on June 18, 1991. Mining is expected to be completed by the summer of 1999. This paper starts by discussing what it took to get from nothing to 2000 tons-per-day backfill, and ends with a hindsight commentary on things that did and did not help.

Jan 1, 1999

By J. E. Johnson

The description of the machine which coilstitutes the subject of this paper is best iutroduced by a statement of the conditions which led to its construction, which may be briefly given as follows : The ore handled at the plant to be here described* is of the variety sornetimes called by those familiar with the brown ores of the South, " Mountain," as distinguished from the " Lime-

Jan 1, 1899

By Eugene H. Dawson

MICA is a mineral that once was a familiar sight as fireproof windows in stove and furnace doors and as lamp chimneys and shades. Since 1878, the beginning of the electrical age, the use of mica for such purposes has gradually declined and its use in electrical equipment and appliances has developed to such an extent that the known sources of supply are scarcely equal to the demand. With the increasing capacity of electric generating units, the size of mica sheets found in nature was inadequate. However, in 1894, a process was developed whereby thin films or splittings cemented with shellac or other binders could be pressed into large sheets. 18 The introduction of radio in the early 1920s created such a heavy demand for the smaller sizes of mica that on March 22, 1938, mica was included among 23 commodities on the list of strategic materials approved by the United States Army and Navy Munitions Board. To be included in this list, the material must be one whereof the domestic supply is not sufficient to meet the demand. COMPOSITION Mica is a complex mineral composed principally of the silicates of potassium, aluminum, and magnesium. Less prevalent species contain, as essential components, lithium, vanadium, and chromium. Iron usually is present either as an essential component or as an impurity. The mica group comprises some nine different species, five of which, muscovite, phlogopite, vermiculite, lepidolite, and biotite, are widely used in industry. Lepidolite and zinnwaldite (lithium micas) and roscoelite (vanadium mica) are sources of lithium and vanadium. Muscovite, "white mica," is potassium mica. Theoretical formulas H2KAl3(SiO4)3. There are two varieties, distinguished as to color, known in industry as ruby and green. In crystals or "books," the colors each range through varying shades of red and green. However, when split into thin films, all micas, except biotite and phlogopite, are colorless and transparent. Muscovite frequently is stained red or black by thin films of iron oxide between the laminae. The staining usually is derived from magnetite, which sometimes is found as unaltered crystals.

Jan 1, 1949

By Wm. Reuben Webster

THE greatly enlarged demand for small sizes of seamless copper tube which has recently occurred, due particularly to the rapid growth of the electric household-refrigerator industry, has emphasized the superiority of phosphorized to tough pitch copper for the purpose of producing this commodity. In the manufacture of this material exceedingly heavy reductions by cold drawing are employed, customary practice involving as much as 90 per cent. reduction of cross-sectional area in four runs without intermediate annealing. Although this superiority has long been recognized by tube makers, no quantitative expression of it has heretofore been published. It is believed that the data herewith presented will serve this purpose. Recent investigators are not in agreement as to the relative mechanical properties of copper containing small amounts of oxygen as compared with copper containing sufficient oxygen to produce that condition known as tough pitch. Hanson, Marryat and Ford&apos; found that "oxygen has a relatively small effect on the properties of copper." Johnson,2 on the contrary, states "it cannot be denied that it (tough pitch copper) is inferior, to deoxidized copper where severe mechanical manipulation is concerned." These authorities in the reports of their investigations, as might be expected from their conclusions, do not present data of a character requisite to a conclusive determination of the question.

Jan 1, 1927

By Nes?e Çelebi

It has never been easy to finance within mining sector. Leasing may be an alternative source of finance for mining investments. Leasing is acquiring the right of usage for an asset for a definite period of time without having the ownership of it. In this study, a model for analyzing the lease financing opportunities for mining investments under risk and suitable for establishing a satisfactory leasing policy for both lessee and lessor is developed. Using the model, it is possible to obtain an expected equilibrium lease amount acceptable by both lessor and lessee and also the expected range of the equilibrium lease amount as a decision tool. First the existing leasing policies are mentioned, then the developed model is described. A case study is presented to illustrate the use of the model in establishing a leasing policy. In conclusion, the usefulness of the model is discussed.

Jan 1, 1992

By R. P. King

A class of gravity separation unit operations in ore-dressing relies for its operation on the production of a stratified bed. Heavier material gravitates downwards, and separation is achieved by splitting the ore horizontally, with the recovery of a dense stream and a lighter stream. The important ore-dressing unit operations that fall in this class are the jig, the Reichert cone and the pinched sluice. A new quantitative model based on Mayer&apos;s potential theory is developed here. This model is developed completely for the simple case of binary mono-size particulate materials, but the extension to units operating with feed material distributed over particle size and density is discussed in principle. The model can be used to predict the performance of these units and is very suitable for simulation. The model is tested successfully against experimental data obtained from a batch jig and a Reichert cone.

Jan 1, 1987

By Smith E. L

The Ore Reserve/Exploration System implemented at Mount Isa for M.I.M. Holdings Limited is a comprehensive computer system designed to process assay, geological, structural and survey data input via special purpose logging sheets from daily activities at Isa Mine, Hilton Mine and various Carpentaria Exploration Company prospects. The system performs two basic functions; (1) data acquisition, validation and file maintenance to prepare the data for retrieval, and (2) generation of routine and optional reports. The types of reports available range from masterfile detail printouts and retrieval of data by key items to survey computations, structural analyses, cutoff calculations, statistical analyses and ore reserve calculations by the polygonal, inverse square or moving average techniques. The use of various optional reports available through the system is illustrated by several examples, and planned future development is discussed.

Jan 1, 1973

A new least-squares method for inversion of d.c. resistivity soundings from horizontally layered earth is proposed. Powers are used as measured data. Apparent resistivity is generalized and apparent parameters curves are defined. Estimates for parameter errors are often possible even when data errors are unknown or large. Acceptance or rejection of a model is made an easier decision. Total computational effort is often reduced when compared to global least-squares methods, because although several optimizations are needed, few data points are involved in each, and initial guesses are requested only once and not all at the same time. Correlations between parameters may be used to improve solutions. Precise indications for extra needed data points can be conveyed. A test example is worked out and a field sounding, taken by Rijo (1973, personal communication) in an alluvium-filled river valley in north-eastern Brazil, is studied.

Jan 1, 1987