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By F. A. Gates, Bengt Samuelson, James E. Edmunds, S. McCune, Neil Hario, Norman L. Weiss, J. M. Bertram, A. M. Cavaliere, F. M. Jr. Stephens, D. D. Chiang

DESIGN BASIS Size of Project The size of the project generally is expressed in tons of ore milled per day, but company policies differ widely in this respect with a few adhering to this set figure but many expecting the design capacity to be liberal. To some companies that follow the latter practice a 25,000-tpd milling plant that cannot reach 30,000 or 35,000 tpd with¬out major additions is a disappointment. The engineers responsible for planning the operation must know what is intended. Other projects are sized according to the tonnage of product rather than of mine ore; examples are iron ore mills that express size in terms of tons per year of pellets or high-grade concentrates, heavy minerals plants in tons per year of rutile or ilmenite, cement plants in barrels per year, potash in tons per year of muriate, phosphate in tons per year of washer rock and flotation concentrate, and others. However, tons per day milling rate is also the common denominator in most of those instances because the major equipment has to be selected on that criterion. Equally important are operating schedules, particularly the number of operating days per week and shifts per day for ore delivery, crushing, grinding, and processing. Hours per shift also are an impor¬tant factor in design, particularly in the case of ore delivery, and the lost time expected for maintenance, cleanup, inspection, preventive maintenance shutdowns, and many others, has to be taken into ac¬count. Frequently, the ore deposit will vary in hardness and grade to such a degree that the capacity of the mill will vary widely from year to year and cannot be expressed as a fixed figure, but rather as an average over a calculable period, such as ten years, or as a specific daily capacity over the first two years, next four years, etc., or some similar projection. A good example of this kind of situation is Asarco's Mission operation 15 miles southwest of Tucson, Ariz., described by Weiss and Vincent,1 where the major rock types differed widely in hardness, so that a change in the proportion of these types in the mill feed could have imposed difficult design problems if a constant tonnage rate had been expected. Expected Life The life of a mining operation depends upon the size of the deposit and the rate of mining. The latter is a policy decision based on an economic analysis2 which, in turn, is based on many factors. From the point of view of mill planning, the estimated life of the operation determines many criteria and affects many decisions on strength of structures and degree of protection of men and materials, the quality of the materials-handling and process machinery, the type of delivery systems for ore to the mill and concentrates to the smelter or market, environmental considerations, and many others. Costly installations that may be excellent investments for a 20-year project may be waste¬ful for a 5-year operation. An example is the comparison of different methods of crushing or grinding. Take single- vs. multiple-stage grind¬ing-the former may be found more economical for a 5-year operation, and the other, more costly method more economical for a 15- to 20-year life. Mining and Ore Transportation The mining method and the means of transportation of the ore to the first crushing stage have far-reaching effects upon mill design, particularly the crushing sections, and upon site selection (see Chapter 2, Situation of Mill). Consequently, mill design cannot advance until the mine planning has reached at least tentative decisions concerning these important matters, or reach the final stages until much is known about the ore that may be expected month by month and year by year for a reasonable period. Methods of ore transportation used in over 90 underground and open-pit mines are listed briefly in Section 32 (Table 1), and more detail is found later in this section and in Section 10, Storage and Transport. These methods include surface railroad, trucks, conveyors, surface skips, underground skips, and tramming from hoist or tunnel. In surface mining, transportation of the uncrushed ore by rail or truck to the primary crushing plant-conveniently located for lowest overall cost-is most common. Rail transportation provides low perton-mile costs. Truck transportation, though in some cases less eco¬nomical, is more flexible and more adaptable to mountainous terrain; furthermore, recent improvements have reduced the operating costs to keep trucks competitive on low-grade ores. The design of the primary crushing plant will be essentially the same whether delivery is by truck or rail, but the location of the plant is subject to more rigid restrictions in the latter case because of grade limitations, and these in turn may adversely affect the selec¬tion of the mill site as well. The influence of truck haulage in reducing the stripping ratio in open-pit mines is an added reason for predicting a minor role for rail transportation in the future. The use of conveyors to transport ore from the pit to the milling plant involves (in most cases) crushing the ore to a reasonable size (10 to 20 in. maximum with today's crushers) before conveying. The Twin Buttes system3 which went into operation in late 1969, utilizes primary crushers (two) and conveyors to receive rock waste, ore, and low-grade stockpile material from trucks, then transport them to the appropriate destination. Flexibility is dependent upon the porta¬bility of the primary crushers. In the face of this development, inclined skip hoists are no longer important to the mill designers. Underground mines generally pose fewer problems of design; these will be discussed in Chapter 2. Character of Deposit The degree of homogeneity of the ore in various parts of the mine is an important factor. The characteristics that concern the millman (approximately in order of importance) are: hardness, assay, metallurgical response, size distribution,4 and moisture content. Under metallurgical response may be included degree of oxidation, mineral¬ogy, clay content, and reagent consumption, as well as process re¬sponse in general. Short-term variations-hour-to-hour, day-to-day, or even week-to-week-make operation of the plant more difficult, require greater flexibility of process design and, perhaps, also require more instrumentation and manpower. Uniformity of the ore in the characteristics noted previously and

Jan 1, 1985

By Phillip O. Tyree, Joseph W. Mussey

Bio-epigenetic sulphur deposits occur in Pecos, Reeves and Culberson Counties of far West Texas. Sulfate reducing bacteria, utilizing hydrocarbons as energy, transformed gypsum into replacement limestone and hydrogen sulfide. Hydrogen sulfide, retained in the pores of the replacement limestone, was subsequently oxidized by highly oxygenated groundwaters, and native sulphur precipitated. West Texas sulphur was first recognized at surface exposures by William P. Blake, a geologist attached to the Captain Pope Military/ Scientific Expedition of 1854. Attempts were made in the early 1900's to mine these sulphur vent exposures by a retort method, but the ventures met with little success. In 1967, Duval discovered a large sulphur deposit near some of the old sulphur works in Culberson County. Duval also expanded reserves in a small sulphur deposit in Pecos County. The Frasch process, developed for producing sulphur from Gulf Coast salt domes, proved successful in West Texas type sulphur deposits also. However, modifications of the process were necessary to provide economical and efficient sulphur recovery from the varied ore occurrences. West Texas conditions and logistics require the ultimate in productivity to be competitive in the domestic and foreign sulphur markets. Several companies, in addition to Duval, are producing or have produced sulphur in West Texas. As of June 1, 1984, a total of 29.87 million mt (29.4 million long tons) of sulphur had been produced west of the Pecos River. Duval Corporation has produced more than 88 percent of that total.

Jan 1, 1985

By Gary P. Thomason

INTRODUCTION One may have heard about how various projects were financed or certain companies were successful in obtaining a bank loan, but there are many more projects and companies who fail to get the money they need. At least a portion of these failures, and a large percentage of the frustrations connected with even the successful financings, are a result of not understanding the process of obtaining money. Recent years have seen a proliferation of debt financing sources available to finance minerals operations (see the next Chapter 11), but these represent only a minor portion of the minerals financing market. The fundamental source of borrowed money to many minerals related companies remains the banks. Therefore, understanding the "Loan Approval Process" can easily mean the difference between getting the money or not. LOAN APPROVAL PROCESS The initial stages of the loan approval process should begin long before the bankers, and the organizations they represent, enter upon the scene. The loan approval can be broken down into six stages: 1) Generation 2) Preparation 3) Presentation 4) Evaluation 5) Approval 6) Documentation As you can see in Figure 1, the bank is only directly involved in the second half of the process. The perils in obtaining financing for the smaller minerals venture are primarily in the first three stages, not the last three. The minerals venture making application for a loan can, in almost every case, improve its chances of success by carefully planning and preparing itself and the information that will be required of it in the loan approval process. Generation This first step in the process is deciding on the need for a loan. (Earlier papers in this Book and in Chapter 11 provide some guidance.) It is surprising how many ventures confuse the need for money with the need for a loan. Suffice to say that the equity investor risks both the timing of the yield on his capital and, ultimately, his capital. The lender, on the other hand, advances temporary funds which he expects to be repaid on a specific schedule with a fixed

Jan 1, 1985

By S. Zaman, F. F. Aplan, Franklin T. Davis

This section deals with the oxides of heavy metals, namely, columbium and tantalum, rare earths, chrome, manganese, titanium, tin, and tungsten. Table I contains the production figures for each of these commodities in the US and in the world in 1977. Specifications for concentrates are also summarized as well as prices for concentrates in 1977. In each chapter an attempt has been made to describe the more common commercial mineral involved with the commodity and the processes used to recover and concentrate the minerals, as well as geographical areas where these processes are utilized.

Jan 1, 1985

By Hal D. Peterson

In research sponsored by the Bureau of Mines, a technique was developed for simulation of heap leaching on uranium ores. The equipment used for this simulation consisted of 2-ft-diam columns, constructed in sections, such that ores as coarse as minus 4-in could be treated in bed depths ranging from 8 to 18 ft with test condition variations. The technique consisted of the separate steps of ore preparation, column loading, charge wetting, leaching, washing, and residue recovery. For the ores studied, sulfuric acid was found to be generally superior to alkaline lixiviants. The rate of uranium extraction by acid leaching proved" to be primarily a function of percolation rate, alkalinity of the ores and oxidant requirements of the ores. Column leaching was closely comparable to field-scale heap leaching in terms of uranium extraction rate and recovery results. Acid and oxidant requirements were lower for the field-scale operation. All column tests, as well as the field-scaly heap, achieved in excess of 96-pct uranium extraction on a Bear Creek, Wyoming ore.

Jan 1, 1985

By Ernest L. Bohnet

Jan 1, 1985

By J. R. Boldt, C. M. Kleemann, V. N. Mackiw, B. Meddings, J. A. MacLellan, E. J. Maney, D. E. Halter, D. J. I. Evans, J. Honkasalo, M. F. Dufour

The technology employed in the processing of nickel- and cobalt¬bearing ores is a continually developing process for utilizing the natu¬ral resources available at a given time. Most of the nickel-bearing ores of commercial importance fall under the category of sulfide or lateritic ores. While the occurrences of both types of ore have been known for over a century, until 1960 sulfide ores largely from Cana¬dian mines have constituted the chief source of production for com¬mercial nickel in the Free World. Sulfide ores are readily amenable to some physical means of concentration, but the lateritic ores are not readily concentrated, and to compete economically with the sulfide ores only the high-grade garnierite ores (a type of lateritic ore) found in New Caledonia were processed to any great extent up to the time of World War II. Around 1960, a gradual shift in emphasis towards latetitic ores as a commercial source of nickel became evident. See Fig. 1. New discoveries of sulfide ores, usually located underground, had not kept pace with the steadily increasing demand for nickel. The lateritic ores, found near the surface of the earth, could be readily surveyed and mined. Lower cost processes were being developed for the extrac¬tion of nickel from lateritic ores and for a time it appeared that, based on pre-OPEC economics, the lower grade lateritic ores-down to 1.2% nickel-could satisfy an increasing share of the world demand for nickel. The sharp increase in the price of crude oil in the 1970s, however, slapped an economic damper on the lateritic ores. Processes for treat¬ing lateritic ores consume large amounts of energy; as the nickel industry entered its deep recessionary period in 1981-83, nickel pro¬duction from lateritic ores became less and less profitable than from sulfide ores. At the same time, new sulfide ores were discovered and brought into production, notably in Australia and South Africa. The chapters in Section 17 were prepared in 1973. Recent improvements in mineral dressing techniques since then include Inco's pyrrhotite separation process which can remove additional pyrrhotite from nickel concentrates, resulting in reduced sulfur dioxide emission from the Sudbury smelter, by some 25%. The chapters in this section dealing with nickel are grouped in line with the two broad categories of nickel ores. Starting with the description of nickel and cobalt ores in Chapter 2, Chapter 3 deals with the processing of sulfide ores, and Chapter 4 deals largely with lateritic ores. The intermediate steps to produce a suitable feed for extraction plants and refineries are similar in principle within the same categories, although dissimilar between sulfide and lateritic ores. Thus Inco in Canada employs flotation and so does Western Mining Corp. in Australia, although Inco's plants were started before World War II, and that of Western Mining only recently in the late 1960s. Treatment subsequent to the ore dressing step, however, shows some interesting differences. The earlier parts deal mostly with established and conventional practices, leaning heavily on pyrometallurgy in both

Jan 1, 1985

By Howard Keele

"The Whitewood Mine near Edmonton, Alberta, is owned by TransAlta Utilities Corporation and operated by Manalta Coal Ltd. Approximately 2 million tonnes of sub-bituminous coal is supplied annually to the Wabamun Generating Plant. A high water table, high groundwater pressure, and structural folds contribute to stability problems in the fine-grained overburden. Significant increases in coal recovery have been achieved in recent years through improvements in water management and mining methods. Agricultural capability of the post-mining landscape has also been improved following the completion of mining/ reclamation activities. Introduction The Whitewood Mine, located to the north of Lake Wabamun and seventy kilometres west of Edmonton, Alberta, is owned by TransAlta Utilities Corporation and operated by Manalta Coal Ltd. Figure 1 shows the location of the Whitewood Mine with respect to the city of Edmonton. The mine presently supplies two million tonnes annually of sub-bituminous ""C"" coal to the 582-megawatt Wabamun Generating Plant located adjacent to the mine. The area is characterized by a high water table-, rolling coal seams and an overburden that consists of muskeg, clay and various sedimentary layers of sand, gravel and fine-grained sandstone. These distinctive characteristics require careful attention in order to not only meet the coal delivery requirements of the Wabamun Generating Plant but also to do so economically. Historical Background A small-scale underground coal mine was opened in the Wabamun area in 1910 by the Conner Coal Mining Co. Ltd. Underground operations were continued by several operators until 1948 when the Alberta Coal Co. Ltd. opened a strip mine which was subsequently taken over by the Alberta Southern Coal Co. Ltd. in 1951. The small-scale strip opera"

Jan 1, 1985

By Peter Allen, John R. Stuermer

COUNTRY RISK ANALYSIS A company operating in a foreign country assumes all the risks that it would at home. However, beyond these, it assumes risks that arise from the unique political economic, financial conditions of the foreign country which it operates. These risks are known as "country risks". The importance of these risks has grown appreciably in the recent past (particularly in the aftermath of Iran's revolution in the late 1970s and Mexico's debt rescheduling of 1982-83), and as a result, country risk analysis has become an increasingly useful management tool. Country risk analysis seeks to assess the probability that countries will service their aggregate foreign liabilities on time, as well as the probability that country conditions could inhibit the debt service capability of private sector debtors. This involves assessment of both the ability and the willingness of countries to meet their external liabilities in a timely fashion. "Ability" is linked economic and financial variables: principally, a country's economic structure, foreign exchange generating capacity and debt service burden. On the other hand, "willingness" is tied to political factors: mainly the economic/financial orientation of government policy and the stability of economic decision making. Ability: Economic, Financial Conditions and Prospects Judgement of a country's ability to meet foreign financial obligations begins with a detailed study of a country's external balance sheet which compares the country's foreign liabilities and assets. Table 1 below presents country balance sheets for Mexico, Korea and Indonesia. [TABLE 1 The External Balance 3-,-et 1983 (billions of dollars; Indonesia Mexico Korea Foreign Liabilities 31.1 67.6 40.5 By Source: Bank 13.1 75.5 26.3 Non-bank 18.0 12.114.2 Foreign Reserves 9.3 4.7 7.0] The large magnitude of Mexico's external debt (nearly $90 billion), compared to foreign assets of approximately $5 billion, illustrates the weakness of this country's external payments position, and the main reason that it has been unable to meet interest and principal payments and been forced to reschedule its foreign debt. On the other hand, the relationship between Korea's external liabilities and assets ($50.5 billion and $7 billion, respectively), is more favorable and helps explain why Korea has been able to meet debt service payments and maintain its access to the international capital markets. Indonesia has even a more favorable relationship between its foreign assets and liabilities, $31 billion and $9 billion, respectively, and its debt is mostly lower interest rate, non-bank debt, making for a less onerous debt service burden. After the balance sheet, the analysis turns to a comparison of the country's foreign exchange earning capacity and its prospective financing requirements, that is, the country's future earnings stream

Jan 1, 1985

By Floyd JM

Conventional smelting reactor systems were designed to recover only one main element from their feedstocks. They did not possess sufficient flexibility to allow optimisation of co-production of multiple values from a complex feed.New reactors such as Sirosmelt and Top Blown Rotary Converters are providing new possibilities for making separation between components and this is of great significance for the complex feeds which are becoming prevalent in the metal extraction industry.Process routes using chemical procedures which take advantage of the flexibility of these reactors will be discussed in relation to a number of possible feedstocks.

Jan 1, 1985

Criteria for the manipulation of commodity markets are discussed. Against the economic background of the past twenty five years actual attempts to manipulate markets are evaluated.

Jan 1, 1985

By Hayes P. C, Matthew S. P

The product morphologies formed on the reduction of dense wustite crystals are classified into three types, A) porous iron, B) porous wustite covered with dense iron, and C) dense wustite covered with dense iron. The mechanisms of formation of these structures and the effects of impurity elements on the product morphologies are discussed.

Jan 1, 1985

By E. B. Fitch, D. A. Dahlstrom

Liquid-solids separation is common to practically all mineral and coal processing as the bulk of beneficiation plants employ water as the major processing vehicle. The growing usage of hydrometallurgy has increased the importance of liquid-solid separation as acidic and basic solutions result in greater amounts of colloidal solids, with their consequent greater difficulty of separation, the economic need for chemical recovery to minimize this operating cost, and the usual necessity of employing more costly construction materials. The three processing steps covered in this section have significant capital costs. Drying, particularly, has an important operating cost because of the obvious need for energy to evaporate the water or solvent. Several common factors influence all three liquid-solid separation steps. Particle Size and Size Distribution. In general, finer particles have slower settling and filtration rates. The specific surface area is increased, which means a lower solids concentration in the thickener underflow and discharged filter cake as well as a grater moisture content to be evaporated in the drying step. Therefore, overgrinding or excessive attrition should be avoided. Consideration should be given to optimum particle size consistent with entire plant operation performance and recovery. Solids Concentration. Increased feed solids concentration will generally minimize required equipment size and costs in all three liquid-solid separation steps. Most thickeners are designed on the basis of unit area required, expressed as square feet per short ton of dry solids per day (square meters per metric ton per day) which will usually decrease with increased feed solids concentration. Filtration rates also increase as the required flow through the capillaries of the filter cake decreases. Dryer capacity increases and less energy per ton of final product is required to evaporate the associated moisture. Particle Shape and Surface Characteristics. Generally, optimum shape is a spherical particle of zero porosity. As either of these factors degrade away from the desired state, difficulty increases. This is particularly true in drying, where porosity can decrease drying rate significantly if the moisture must first reach the particle surface by diffusion

Jan 1, 1985

By B. Fitch, E. J. Roberts

Definitions and Terminology Classification is defined within this section as the separation of solid particles into size or weight fractions or classes by differential settling through a fluid. It is usually thought of as a size separation, but is actually made on the basis of particle settling rate, and so is affected by any variations in particle density and shape. The fluid may be liquid (wet classification) or gas (dry or air classification). This section will treat only wet classification. There are two basic types of classification; pool and hydraulic. In pool classification a suspension of feed particles is fed into and out of a pool of some kind at such a rate that only part of them¬ the coarser and faster-settling part-has time to settle out. The remain¬der overflows as fines. In hydraulic classification the feed suspension is introduced into or above one or more columns or pockets through which water is rising at a controlled velocity. Coarse particles subside through the pockets and are removed through spigots. Those which settle slower than the rising velocity in any column or pocket are (at least ideally) prevented from subsiding and so must overflow. Hydraulic classifiers or sizers are capable of making far sharper sepa¬rations than pool classifiers. The force causing settling may be gravity, or alternatively may be from centrifugal acceleration as developed in a centrifuge or hydra cyclone. Two things are needed to characterize the separation produced by classification: first, the size, D„ or equivalently the screen mesh at which it is made; second the sharpness of separation. Separation size may be defined in various ways. In closed-circuit grinding it is commonly specified by some point in the overflow screen analysis: For example, 5% on 65 mesh. In other applications, notably

Jan 1, 1985

By Gary L. Hundley

The Bureau of Mines has devised and demonstrated an ammoniacal sulfate leach process for recovering nickel and cobalt from low-grade domestic laterites. Solvent extraction of cobalt, one of the process steps, requires the reduction of hexammine complexes of C03+ to C02+ in an ammo-niacal leach solution. Previously, reduction was accomplished using cobalt metal shot in a column. This report presents experimental results and an economic evaluation comparing two alternate techniques with the shot column: (1) an electrolytic reduction cell with an extended surface area cathode and (2) direct electrowinning from purified leach solution using a cell with a fluid bed cathode. The second alternative eliminates the conventional solvent extraction-electrowinning steps. The costs of the three methods, based on the requirements of a pro-posed commercial-sized plant, including all unit operations, were deter-mined by the Bureau's process evaluation group. The operating costs for the shot column, $1.19/kg Co, and for electrolytic reduction, $1.20/kg, are essentially the same, but the cost of direct electrowinning, $3.77/ kg Co, would eliminate this method as a practical alternative. The cap-ital cost of approximately $14.4 million for reduction in a shot column is much higher than the approximately $4.4 million for electroreduction.

Jan 1, 1985

By Keith L. Harris

Economic activity in the United States picked up in the third quarter, according to the latest estimate released by the Department of Commerce. Real gross national product (GNP)--the Nation's output of goods and services--grew at a seasonally adjusted annual rate of 4.3%, or $17.6 billion, compared with a rate of 1.9% for the second quarter of 1985 and 1.6% for the third quarter of 1984 (table 1). The 4.3% rate is one percentage point above the preliminary estimate reported in the August/September issue of Minerals and Materials. Most of the upward revision was due to the change in business inventories and Government purchases, while the figure for net exports was revised downward substantially. The 4.3% growth bettered by 1.5% the average rate of growth in GNP from 1974 through 1984 and was 1.1 % above that of the period from 1975 through 1984 and 0.7% above that of 1980 through 1984. Of importance to the minerals industry was the $14.4-billion growth in personal consumption expenditures, $10.2 billion of which was for durable goods (especially domestically produced automobiles) and the growing residential investment. The net export deficit continued to grow, however, and investment in nonresidential structures, producers' durable equipment, and business inventories declined. Prices, as measured by the GNP fixed-weighted price index, increased at an annual rate of 3.1% in the third quarter, compared with 3.9% in the second quarter. The slower rate of inflation resulted mainly from a decline in energy prices, following second-quarter increases. Fourth-Quarter Prognosis Many of the economic data available for October and November indicate that the economy is growing modestly and will continue to grow over the next 3 to 6 months. The composite index of leading indicators, designed to predict economic activity within 3 to 6 months, rose 0.3% in October, the sixth consecutive monthly advance, according to the Department of Commerce. Six of the 11 available leading indicators were positive: Stock market prices rose, as did sensitive material prices, credit outstanding, and manufacturers' new orders for consumer goods and materials; initial claims for unemployment insurance decreased, and firms were getting slower delivery of goods. Four of the indicators were negative: Business formations, homebuilding permits, contracts and orders for plant and equipment, and money supply all declined. The average hours worked per week, already at a high level, remained unchanged.

Jan 1, 1985

By Dan Nilsson

Rock from underground mining has a size-distribution, that varies from mine to mine, depends on rock conditions and mining method and on how much explosives etc, that is used. Because at the high costs, associated with full-scale studies of the size-distribution of blasted rock in a mine, detailed information is seldom published about such size-distributions. However, some facts can be noticed. Rock from tunnelling and other types of development work has a fine fragmentation. Cut-and- fill mining is a method that normally results in blasted rock with an advantageous size distribution. Block caving on the other hand often results in large amounts of boulders, since blasting of the rock is normally not used.

Jan 1, 1985

By James L. Poole

INTRODUCTION Companies in the mining industry are subjected at times to currency exchange rate risks and interest rate risks. The former occurs any time a firm deals in more than one currency. The latter occurs anytime a firm is financing itself with borrowings that have a floating interest rate (although a fixed rate can be a problem at times). FOREIGN EXCHANGE RISKS There are two general reasons why exchange rate risks (FX risk) can occur: First, a firm may be building a mine or plant in another country where financing for the plan is denominated in funds other than the country hosting the plant. For example, if a Canadian firm is building a smelter in another country which is being financed with Canadian dollars, the C$100 million for labor, which must be paid in the local currency, has subjected the firm to a C$100 million FX exposure risk. If after the cost estimates were made the local currency appreciates 30% against the Canadian dollar, the cost of labor has increased to C$130 million. (Of course, the local currency could also devalue during this period making the labor cost component less than estimated.) The other reason exchange rate risk arises is due to the fact that the costs of production in one country producing minerals may be incurred in one currency while the production is sold in another currency, such as coal being exported from Canada to Japan under contracts denominated in Yen. In this example, the Canadian firm is exporting coal to Japan and being paid in yen in 30 days at a contract price of 100 Y per ton. Furthermore, assume that the mining firm anticipates a depreciation of the yen against the Canadian dollar of 5% in the next 30 days. Therefore, the mining firm stands to lose 5% of the value of its shipment in a month's time not including carrying costs. In both cases, the mining company risks an adverse change in the exchange rate, that is, the currency the company holds may decrease in value relative to the other currency. There are a number of ways to mitigate the exposure to foreign exchange which can be utilized by the mining company. Optimally, a company should try to match all their inflows and all their outflows in the same currency. For example, if a Canadian firm has mining costs and debt service costs both denominated in Canadian dollars then 100% of their receipts would need to be in Canadian dollars. If a Canadian firm has 70% of its cash outflows in Canadian dollars and 30% of its cash outflow in American dollars in the form of a loan amortization then their receipts would need to be 70% in Canadian dollars and 30% in U.S. dollars. This general principle of matching cash receipts and cash costs in the same currency works fine in a perfect world but what of the real world when these cannot be matched? In actual practice, however, the financial markets have developed a number of ways in which foreign exchange risks can he managed or reduced. FORWARD MARKETS One method is to use the forward markets which are made on a world-wide basis by the commerical banks for foreign exchange. If a firm wanted to lock in the current exchange rate for the receipt of a foreign currency at some point in the future, they could do so by contracting on the forward market with a bank selling that foreign currency at the current rate at the future date. For example, assume that a Canadian firm is exporting coal to Japan which would pay yen in 90 days. If a firm wanted to lock in today's exchange rate they could contract with a bank to sell on the forward market yen in 90 days. When the yen was received the contract would be executed by selling the yen to the bank and receiving the previously agreed upon number of Canadian dollars. Generally speaking, the forward market can be used to sell forward about 12 months. The costs of selling (or buying) forward

Jan 1, 1985

By David E. Pearson

"There are many tests that can be used to characterize and classify coals, and describe their quality. One of the easier tests, and most versatile in its application, is petrography. Rank and coal type are precisely defined by petrographic evaluation, and in this paper they are compared with other definitions of rank and coal type. Brief descriptions are given of the various rank tests, and of rheological and coking tests used to describe coking-coal quality in Canada. Similarly, tests used to evaluate thermal coal quality are discussed. Finally, the use of these tests as parameters to classify Canadian coals is examined with reference to four coal classifications.Introduction Among all coals there are two independent variables that are required to evaluate coal quality. These are, coal rank and coal type (or composition), and although coal petrography can be used to precisely define them, other methods are often used to provide values that are, in fact, functions of rank and coal type. For example, volatile matter yield is used as a proxy for rank, and free swelling index is used as a proxy for coal type in the International Classification of Hard Coals by type. Currently, there are a number of methods in use in Canada to define rank. The approach taken here, (obviously the author's bias), is that Romax, the mean maximum reflectance of vitrinite, is both a quick and an accurate measure of rank. It is logical to compare the other techniques employed in the measurement of rank to this favoured method. Coal type is, in theory at least, simply a quantitative measure of the various varieties of coal. In practice, the microscopic entities are assigned to a Reactive or Inert category, and at that point objectivity fades from petrography. Despite this somewhat subjective approach, petrographic composition of coals remains an independent variable of such.importance that its place in the evaluation of coal is essential. In this paper, a variety of me.thods that are used to assess rank and coal type are reviewed and compared; the influence of these variables over other parameters that are used to determine the quality of metallurgical and thermal coals is examined, and their usefulness in coal classifications is discussed."

Jan 1, 1985

By Michael J. Fiannnaca, Michael M. Easdon

Disseminated epithermal gold metallization occurs within a breccia unit interpreted to be a submarine debris flow. Gold is associated with oxidized pyrite, fluorite, and jasperoidal silica. A minimum of 8 Mt (9 million st) of open-pittable mining reserves will be cyanide heap leached as run-of-mine ore at a rate of 0.9 Mt (1.0 million stpy 1. Careful evaluation of the combined results of successive sampling projects has established the pit plan, minable reserves, and process metallurgy of the operation. The sampling procedure utilized for a given test depended upon geological interpretation as well as the procedures, successes, and failures of previous tests. This paper summarizes the sampling and testing procedures of the development effort in light of the project goals and attendant problems in achieving them.

Jan 1, 1985