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By Bin Tang, Suping Yao

In the last decade, the copper industry in China has developed rapidly and attracted the world’s attention. The production capacity of refined copper has grown remarkably from 4.578 million tons in 2010 up to 9.029 million tons in 2018, accounting for about 40% of the global refined copper production. And now, China has become the biggest refined copper producer in the world. This paper summarizes the application of modern copper metallurgical technologies such as Outotec flash smelting/converting technology, Cyclone smelting technology, TSL (ISA/Ausmelt) smelting/converting technology, Jinfeng side blown smelting and Baiyin side blown smelting technology, Chifeng side blown smelting and continuous top blown converting technology, SKS bottom blowing technology, Dongying two-step smelting technology, copper electrorefining with high current density, etc. in China’s copper industry, analyzes and compares the characteristics of those technologies and presents the great efforts of China’s copper smelters in adapting to the increasingly strict emission standards and improving economic benefits of copper smelters. INTRODUCTION China has been the biggest refined copper producer in the world for many years. China produced million tons of refined copper in 2018, accounting for 40% of the copper smelting production in the world, and of which, roughly, 70% of the copper concentrate was imported, mainly from Chile, Peru and Australia. ICSG (International Copper Study Group, 2017) shows clearly the position of top 20 countries of copper production and copper mine production (Figures 1 and 2). Blast Furnaces, Reverb Furnaces and Electric Furnaces dominated China Copper Smelting for quite long time till 1980s. The first modern copper smelting technology (flash copper smelting) was introduced into China in 1980s, then followed by Noranda, Ausmelt and ISA. Since then, China copper smelting technology stepped into modern time. Since 2000, old processes (Blast Furnace, Reverb Furnaces and Electric Furnaces) were phased out and replaced by modern smelting technologies. China Copper Production has been increasing dramatically (Figure 3).

Jan 1, 2019

By Hongjie Yang

The No. 10 metro line of Shanghai city is 36 kilometers in length and will pass through the operating airport runway by using tunnel boring machine with earth pres-sure balance mode. Although there are examples through world that tunnels pass through airport runway and tunnelling underground is not a difficult undertaking technically, there is rare experience in China for the similar projects especially in Shanghai saturated soft soil region. Shanghai soft earth is famous for its high compressibility, high rate of water content, weakness in strength, large deformation and different characteristics in earth strata. Besides, the whole construction process will be under ultra-large airplane dynamic load on the surface ground over the tunnel, which increases the risks of construction process. This paper evaluates the feasibility of building the metro tunnel under such an extremely serious condition, especially the subsidence of ground surface caused by advancing of tunnel boring machine, which also is the most important control target for the safe operating of the runway. Furthermore, this paper discusses the effective measures to keep the settlements in the permissible level during the whole working period for the tunnel from aspects of plan, design and construction.

By Christian F. Baiz

INTRODUCTION Industrial minerals can have similar financing requirements to those needs of metaliferrous and coal mining projects. One of the outstanding differences is the understanding of the many different markets that these industrial minerals represent. There are in excess of 30 principal industrial minerals ranging in terms of annual production from the largest quantity such as sand and gravel, to possibly the smallest quantity of production of a legitimate industrial mineral which may be defined as industrial and rough gem diamond. (See Tables 1 and 2) Project finance techniques, analytical methods, and information requirements are covered elsewhere in this Chapter and Chapter 10. Some comments on equity finance aspects follow. EQUITY AMOUNT The amount of equity in a financing transaction provides a cushion to the lender in case the project runs into trouble. Generally speaking, the greater the amount of risk in a project, the more equity a lender will require. The amount of cash equity in a project financing transaction is between 25 and 40 percent. The amount of leverage (debt/equity) is negotiable based on such factors as the strength and extent of the sponsor's undertakings, of the project's economics, and the term of a strong sales contract. Naturally, a borrower seeks to obtain d loan with as little equity required as can be negotiated. Zero percent equity is usually associated with a take-or-pay contract (a hell-or-high- water unconditional commitment under which the purchaser must pay for the commodity as though it were shipped regardless of whether it is actually mined or shipped) with a financially strong corporate entity i.e., the parent company or an end user. As a take-or-pay contract is tantamount to a guarantee of payment, the banker views the credit basis of the loan as being other than the borrower's mining operation and therefore will analyze the creditworthiness of the institution purchasing the commodity on the basis of its corporate balance sheet. Do not confuse a take-or-pay contract with a take-if- tendered or take-and-pay contract. Another means in the United States of obtaining zero percent equity is the carved out production payment financing, typical of coal mine financing. This involves the sale, or conveyance, by the owner of the mineral property of a production payment to a nominally capitalized company. The nominally capitalized company is formed solely to buy the production payment and usually borrows 100 percent of the purchase price from a lender. Equity amounts of 10 to 20 percent generally are found in transactions which employ techniques such as an advance sale or a subordinated lease/loan. These agreements are viewed as quasi equity by most banks for several reasons. First, the proceeds represent a cash infusion early in the project's life - usually prior to the bank lending any funds. Thus, the repayment schedule is "behind" that of the bank debt. In the case of an advance sale, repayment is in the form of a long-term supply contract with favorable terms, usually priced close to the mining operation's costs. There is also usually a requirement that all costs of the project be paid for by the loan or equity, often making the sponsors financially responsible for any cost overruns. Cost overruns are a major risk in any project, large or small, and are often due to unforeseen factors such as wildcat strikes, a piece of faulty equipment, or any event which delays completion, e.g., remote location, weather, etc.. . The question of how overruns are covered can be negotiated. For example, in addition to the original debt/equity ratio of the project, there can also be a cost overrun ratio that will

Jan 1, 1985

By P. H. Derbyshire

The use of continuous flight auger piles has increased significantly in the U.K. to such an extent that it is now the most widely used method of constructing small diameter bored piles. This paper describes the improvements in equipment, techniques and particularly monitoring that have led to this growth. A review of the equipment in use describes how purpose built self erecting machines have been generally adopted. Improvements in ancilliary equipment are described. Concrete has almost completely replaced grout and techniques have been developed to extend the length of reinforcement that can be placed. Leading specialist contractors have developed instrumentation to monitor the construction of the pile (in terms of time, depth, torque, concrete pressure and flow) and keep a record for checking. A further significant development of this monitoring by means of sensors at various levels in the auger stem is described. The results obtained from this monitoring are reviewed and future developments discussed.

Jan 1, 1989

By R. Kaushik

According to the U.S Department of Energy (DOE), mineral processing activities including comminution (size reduction) uses 4% of the world electrical energy consumption. Such numbers reinforce the need to invest in energy savings initiatives in order to produce more using less. ENERGY EFFICIENCY OPPORTUNITIES AND CHALLENGES IN MINING OPERATIONS In addition, DOE, in its Mining Industry Energy Bandwidth Study, has identified huge potential for energy savings for the coal, metals and mineral industries. Even knowing the overall causes of energy waste and some potential tools for remediation, mining companies may struggle to apply such tools and get the desired results due to the following reasons: ? Limited staff ? Lack of accurate economic and investment analysis to justify energy savings projects ? Lack of knowledge to identify low or no-cost savings opportunities ? Internal competition for resources According to the workforce and talent management experts, the Talent Strategy Advisors, the demand for mining engineers is expected to exceed supply by 30% by 2013. Mining personnel are likely to be burdened with increasing and varied workloads with limited training. This will result in the need for automated and simple tools to support energy efficiency activities. Mining engineers will simply not have the time and resources to create such tools, collect and analyze the data to make decisions, and track results.

Feb 27, 2013

By Paul L. Russell

Introduction As the US and world population increases, so does the problem of supplying expanding energy needs. Early requirements worldwide were mostly met by abundant forest vegetation. Man's large scale use of minerals-energy resources is a fairly recent development. It occurred only during the past 200 years. Coal was the first mineral fuel to be used extensively. It was not a large factor in US energy production until the beginning of the 19th century. Petroleum and natural gas use is about 125-years-old. Electricity generation by falling water is about a century old. Atomic energy is only about 30-years-old. Extensive use of it is still in the future. Solar energy is in its infancy. Other energy sources such as wind, peat, and geothermal energy are minor and primarily of local importance. There were three main features of the fuel supply picture during the past 125 years. By 1900 coal replaced wood as the principal energy source. Since 1900, oil and gas have captured many coal markets. And after the mid-1970s, there was a resurgence of coal usage. (Figs. 1 and 2). Wood Until the advent of mineral fuels for energy, the major global energy source was wood. But populations increased and became centered in towns and cities. The problem of a sufficient energy supply first developed as nearby, easily obtained wood was exhausted. This problem became more acute as industries such as shipbuilding, smelting, and pottery making, became more widespread. Results of wood use as an energy source and building material are starkly evident in areas of the world where civilization is oldest. Entire forests were consumed and have never been replaced. In the US, wood supplied 90% of all fuel requirements until about 1850; and more than 50% until after 1880. By 1900, wood still supplied 20% of all energy uses. In the mid-1970s, energy costs increased, due largely to the oil embargo. This increase resulted in an increased wood demand for domestic heating. While large quantities of wood were being used, its share of the total energy market was still less than 3%. By 1983, wood was becoming increasingly scarce and more costly near most large US cities. Wind Wind powered ocean vessels for many centuries. Sailing ships were still common in 1900. Windmills provided an early, cheap energy source and continue to be used today on farms. Design and development of windmills for electricity generation is being conducted. Interest in wind power is growing worldwide where availability of wind currents warrants the investment. Also, US regulation requires power companies to "buy back" electricity generated by windpower in excess of that used by the windmill owner. Coal By the 1600s, England was producing, 900 kt/a (1 million stpy) of coal for heating and other uses. The first coal-fired blast furnace for iron smelting was developed in 1621. Coke-making was developed in 1755, and Watt invented the steam engine in 1769. Illuminating gas made from coal was introduced in London in 1800. During this same 200-year period, France and Germany developed coal production, but on a smaller scale than England. US, bituminous coal was mined near Richmond, VA, as early as 1748. Major bituminous coal-producing states in the early period were Pennsylvania, Virginia, Ohio, Kentucky, Illinois, and Maryland. West Virginia replaced Virginia as a major producer, when that state was formed in 1863. As the US expanded west, new coal deposits were found and exploited. Indiana, Alabama, Tennessee, Iowa, Kansas, Missouri, Washington, Colorado, Wyoming, Arkansas, Oklahoma (Indian Territory), Montana, New Mexico, and Texas had significant coal mining operations by 1900. Today the eight major coal producing states are Kentucky, West Virginia, Pennsylvania, Illinois, Ohio, Virginia, Wyoming, and Montana. These states accounted for about 80% of all coal (lignite, bituminous, and anthracite) produced in the US during the past several years.

Jan 8, 1984

By L. Hartsell Cash

INTRODUCTION Created in 1944 to help rebuild those economies, principally in Europe, which were seriously damaged or destroyed during the Second World War, the World Bank--or to use its correct name, the International Bank for Reconstruction and Development-began its operational phase by making a loan to the Government of France to accomplish two tasks: (i) to import coal for space heating purposes; and (ii) to buy new machinery and equipment to help rehabilitate its coal mines. Once the thrust of reconstruction in postwar Europe was largely accomplished, the World Bank Group (for today the World Bank has three separate lending windows) turned to mobilizing funds to improve living standards in developing countries, which remains its primary goal today. Over this period of time, the World Bank Group has continued to assist the world mining industry in various ways and, since 1955 the World Bank Group has financed mining or mineral processing projects with loans/credits totalling $1.5 billion. The World Bank Group consists of two institutions--the World Bank itself and the International Finance Corporation (IFC), which was founded as a separate institution in 1956 and three separate lending windows--the World Bank, the International Development Association (IDA), and IFC. The World Bank loans are provided at commercially-related interest rates but have grace periods usually of up to 3 to 5 years and repayment periods ranging from around 15 to 20 years. Since the World Bank raises its operating funds on the international capital markets in varying currencies and in varying interest rates, it relends a basket of currencies at floating interest rates which are fixed every six months to reflect the Bank's own borrowing cost. At the present time, the interest rate is just below 10% per year and in addition, a one-time front-end fee of 1/4 of 1% is charged. Also, a commitment fee of 3/4% per year is charged on the undisbursed amount of the loan itself. For loans to industrial and mining projects, it is normal to charge an additional guarantee fee of 1 to 1.5% in addition to the annual interest rate. This guarantee fee is payable to the government of the country in which the project is carried out since, by its charter, the World Bank is required to have the guarantee of the host government for each loan made in a specific country. By far the greatest source of lending funds within the World Bank Group is that of the World Bank itself and for the fiscal year ending June 30, 1984, the World Bank approved loans totalling $12 billion. The second lending window within the World Bank Group is IDA which performs the same functions as the Bank itself and has the same staff. Nevertheless, its loans (called credits) are made on much softer terms and are made to the poorest nations only. IDA funds are subscribed by the wealthier countries, usually as grants, and these are relent as credits to those countries with the lowest per capita income. IDA credits are made for 50 year periods, including 10 years of grace, to the government itself. The credits are interest free, but there is a service charge of 3/4% per year on the amount withdrawn and outstanding to defray the administrative costs of IDA. Credits approved during fiscal 1984 totalled $3.5 billion. The third lending window is IFC. While IFC is a separate corporation and operates quite separately from the World Bank and has its own staff and regulations, it works very closely with the World Bank on its overall approach to the mining sector and to a particular country. IFC's mission is essentially to supply venture capital and to stimulate development of the local private sector in capital markets as well as to promote the international flow of private capital to developing countries. Unlike the World Bank and IDA, the IFC does not lend directly to governments

Jan 1, 1985

By A. F. Marques

The Azores islands are located on a triple junction where the American, African (AFR), and Euroasian (EUR) plates meet. The Mid-Atlantic Ridge (MAR), oriented N-S, represents two branches of the T; an E-W branch defines the EUR/AFR boundary called the Terceira Rift. The nature and structure of this plate boundary, as well as the dynamics of the interaction of tectonics and volcanism remain unconstrained. The Azores plateau is seated on a mantle domain of anomalously low seismic S-wave velocities, and gravity and geoid anomalies, where the apparent thick crust is thought to relate to larger degrees of melting initiated at greater depths [1]. The cause of these anomalies is controversial but many authors consider the presence of an anomalously hot/wet enriched mantle probably supplied by a plume [2]. The geochemistry of the subaerial and most submarine lavas from the plateau reinforces the plume model beneath the Azores [3-4]. The origin, size and present location of the plume is under debate but an area near Terceira is the favoured plume centre [5]. [ ] SEAFLOOR HYDROTHERMAL SYSTEMS IN THE AZORES AREA (36ºN ? 40ºN) More than 150 active and fossil hydrothermal systems are known in the oceanic seafloor [6]. Many more are yet to be found on vast oceanic areas that haven?t been explored [7]. Ever increasing knowledge shows that modern seafloor hydrothermal systems can be hosted in felsic to ultramafic rocks, vary in size and shape and exhibit diverse amounts of sediment cover

Jan 1, 2011

By R. S. Dean

[During t!~c past f isc.~l y~:-.r the Xetzllvz-gicd 3ivi oion has made im- portant contribution-, don,- tlie lines rlictnteil by the Bureau policy of con- servation of domestic rnker~l rcsoul-ces throui;h use. During t!~c past f isc.~l y~:-.r the Xetzllvz-gicd 3ivi oion has made im- portant contribution-, don,- tlie lines rlictnteil by the Bureau policy of con- servation of domestic rnker~l rcsoul-ces throui;h use.]

Jan 1, 1940

[lllc purpabr at thla report Vd, Lu JeLermlnr the health ar1J sdfet?; Nene11Le a octatc?J ultll Lne oar L.t support Ydlll ..up.I,ated lu dltetllative cupPurt svsLem, larrellLty hcle.g uaeJ af the Len,::rat 1, UI.Jlng 11-al tl. .1 a d 1 c L V h S LIdl'. L dal. I -ten- lu L he tt I .. L'., etuJ I e. 11'? L_1,1'1,11 .Jtd.. it, ..urn,at'l core ,LuJICCill JhLdll, an.: ...,La -IL .utia_tel .an LI?r oar of -l: l,.!rl .a..a. Ma terI.I auJ ...11,mc[Ii -ldla,tutcle 11. LI.ac .uwIttIca Welt a, a.. V.alte,, L.. .:Ltail, ..,,L., uI. LuClu,alug) Lelll anci ur devel?puJ I.,r Cul r1 , all. ...~.,rLrI Vt,ILt 1.'ere ~e,1C L? .Lher Gentiaii m111cc t, UL.-rye a Variety o. a rL vyl I pp.1Ca:t..n:. 'a.la IrL ..,_wLeiti, Iapl,.III ,tall ~,..:. IL all, maLertdl c1,arait-erlstIcs, JIRICn,IUIIe. and laden ul1.1 ILc rrgatrelaeuls. ,1 r.? p.'rt .a pro-1Jd, labor rep altrlarnts Jdta and illtlitI ieS tie l,ealtll d?J ,atetV ISSUC ,u-1aled Wit su furl Wall a an, CJl,wttuctSOn, I'aLentiaI appll.at1ou:. Ior support Walt, ,a,. , a, sdV.u,L111 .., u.1 retreating lungval1, single -t r-, roar al,- pi r. [,-+ln, anJ SuhIU..,Ina, Sill] b1OpplllgL ale 1:111neated aid al? e.aIWRac AS Sddemcni LV pre,C'IIL..: .,f LI. Clabllhty r+t rlul,I.,y111I? ulg4,rt .I Le.l,lwlug,. Lr i,,,rCASC Lllc rtCVLLrS rat, u., retrc.+tlnp .unui.,11? ur L., elply, A d v Ctnp IuI-,wall in uer;-!y iy1ng seam, . 11111.a1L .a1,.'iI1.-I,.. nr S.IU1tIVlil a1 milItlI; Lust, La LIldnt;2S L.~ gey support Vait Id tdmcLera la dlaa presents,.]

Jan 1, 1980

By D. J. Dollhopf

A week-long selective overburden handling dragline op ration was conducted at a strip mine near Colstrip, Montana. The objective of the demonstration was to hvdrologically isolate a saline overburden zone during placement in the spoil piles. The saline zone had concentrations considered inimical to successful reclamation and was potentially dangerous to future water quality in the spoils aquifer. The zone was identified after review of chemical data for overburden samples collected from the intense 60 m grid drilling pattern. The saline zone in the overburden was: 1) handled in a normal manner; 2) segregated and buried; and 3) segregated, buried, and covered with a relatively impermeable 1.0 m thick clay cap. The method used to formulate this demonstration, the demonstration itself, and the monitoring and evaluation techniques are described in this report. Observation wells were installed to monitor ground water in the overburden, Rosebud coal, and McKay coal. Data from these wells were, used to estimate post reclamation water levels and to evaluate recharge and water movement characteristics in the vicinity of the demonstrations. The inimical zone was successfully handled in a selective manner with a minimum of delays. Economic analysis indicated cost of these selective burial operations to be about 1.1 to 1.5 times the cost of the normal operation at this particular mine site. Long term monitoring will be required to evaluate the effectiveness of these handling techniques in hydrologically isolating undesirable overburden materials.

Jan 1, 1977

By R. S. Dean

[During the past fiscal year the Metallurgical Division has made important contributions along the lines dictated by the Bureau policy of conservation of domestic mineral resources through Its investigations include determining of fundamental data of metallurgically important materials improvement of standard ore-treatment method to eliminate waste and improve the grade or recovery of the products; and development o new metallurgical processes.]

Jan 1, 1940

By Oliver C. Ralston, Dorsey A. Lyon

Volatilization in retorts has been, until recently, the only commercial process of producing spelter, hence the zinc mine operators have had to meet the terms of the zinc smelters in regard to the following requirements: (1) Minimum percentage of zinc the ore must contain; (2) the chemical combination of the zinc in the ore; (3) the proportion present of those elements that interfere with the suceessful recovery of the zinc when the ore is retorted. In consequence of these requirements, only a comparatively small proportion of the zinc ores mined can be shipped directly to the smelters.

Jan 1, 1919

By H. W. Gillett, A. E. RHOADS

In its study of methods for reducing metal losses in the non- ferrous metal industry, the Bureau of Mines has conducted a long series of experiments on electric brass melting and collected much data on the experiments of others. Reports bearing on this work that have already been published by the Bureau of Mines are Bulletin 73, "Brass-furnace practice in the United States," and Bulletin 77, "The electric furnace in metallurgical work." A comprehensive report describing the design and operation of all types of electric brass furnaces and showing their performance in experimental tests on a commercial scale is in course of preparation. However, commercial tests of several new and promising types of furnaces are still under way, the results of which should be included in any general discussion of the subject. For this reason it has seemed desirable to issue a preliminary bulletin giving the data on a type of furnace developed in one stage of the bureau's work.

Jan 1, 1918

By Raymond B. Ladoo

Talc is a hydrous magnesium silicate having the chemical formula H2Mg3 (SiO8 ) 4 ; it is often called steatite, soapstone or potstorie, and by the trade names talc clay, agalite, asbestine, and verdolite. The term talc may be used to include all forms of the pure mineral, whereas steatite denotes particularly the massive, compact variety, and soapstone the impure, massive form that often contains only 50 per cent of talc. Merrill 1 says: The name soapstone is given to dark-gray and greenish talcose rocks, which are soft enough to be readily cut with a knife, and which have a pronounced soapy or greasy feeling; hence the name. Such rocks are commonly stated in textbooks to be compact forms .of steatite, or talc, but as the writer has elsewhere pointed out, and as shown by the analyses here given, few of them are even approximately pure forms of this mineral, but all contain varying proportions of chlorite, mica, and tremolite, together with perhaps unaltered residuals of pyroxene, granules of iron ore, iron pyrites, quartz, and, in seams and veins, calcite and magnesian carbonates. When pure, talc is soft, having a hardness of 1, but when impure or when it grades into its varieties, the hardness increases to 3 or 4. Talc ranges in color from pure white and silvery white through gray, green, apple green, gray green to dark green, nlso yellow, brown, or reddish when impure. It is rarely, if ever, found in wellformed crystals, but often occurs in foliated plates or in fibrous aggregates. It is commonly compact or massive or in fine granular aggregates. Several analyses of talc from different regions ·are given in Table 1. Talc has several varieties, the most important of which is Rensselaerite. This variety, found in a small area near Gouverneur, St. La.wrence County, N. Y., is a hard, fibrous, -waxlike mineral having the same chemical composition as talc, but lacking its softness and its peculiar greasy feel. Its hardness and its peculiar fibrous form, even when ground, have made its grinding and separation a separate problem. In addition to the varieties of talc and soapstone, the mineral pyrophyllite or agalmatolite, a hydrous silicate of alumina, with the formula H2Al2 (Si08 ), is also mined and sold as talc. It resembles talc in color, feel, luster, and structure, and may be successfully substituted for true talc for most uses. In this paper it will be considered as one of the commercial forms of talc.

Jan 1, 1923

By G. E. Pralle

INTRODUCTION The decade from 1969 to 1979 saw the crest of a wave of investments by companies and investors, primarily from the major industrial nations, in the metals and minerals industries of the so-called lesser developed countries. This was brought about by two major considerations: 1). The higher ore grades and therefore the higher profit potential of the mineral deposits in the third world countries, and 2). The desire, particularly by the European countries and by Japan, to ensure a safe supply of raw materials not available in their own countries. The decade began with the start of the Toquepala mine in Peru and the major investments in the Bougainville mine in Papua New Guinea and the Ertsberg mine in Indonesia. It ended with the start-up of Southern Peru Copper Company (SPCC) Cuajone mine in Peru and Inco's Soroako mine in Indonesia and the investments in several major alumina or aluminum projects in Australia and Brazil. Concurrent with this huge flow of funds into the mineral resources industry of the developing world was the build-up of a psychological fear in the host countries of exploitation/domination by the foreign investors. This resulted in an increasing trend towards: 1). Nationalization of existing mineral ventures, and 2). Tougher legal/fiscal frameworks for new ones. NATIONALIZATION Nationalization appeared in its earliest form as "Mexicanization" of the petroleum industry in Mexico in the 1930's, followed later by Mexicanization of the mining industry in general. This was enacted with the Mexican Mining Law of 1961 which required that 51% of the equity be owned by Mexican nationals. Later in the decade the equity share for foreign investors was reduced to 33 1/3% for the developers of the Frasch sulphur operations in the Isthumus of Tehuantepec. However, the law was not fully implemented in the copper industry until late 1970 with the purchase of 51% of the ownership in the Cananea Mining Company. The trend toward nationalization of the copper industry progressed to Chile where in 1967 under the Government of Eduardo Frei the major North American copper companies were induced to sell a one-half interest in their Chilean mines to the State. Likewise, in 1970, "Zambianization" took place, when the two major operating companies Roan Selection Trust (Amax) and Zamanglo (Anglo American) were restructured into Roan Consolidated Mines (RCM) and Nchanga Consolidated Mines (NCCM) providing the government with 51% of the equity ownership. Whilst the earlier forms of nationalization in general constituted a fairly priced buy-out (El Teniente, Chile for US$80 million, RCM for US$117.8 million, NCCM for US$178.7 million), the total nationalization of the Chilean mining companies in 1970 under Salvador Allende did not. Later, "Western" countries joined this trend and on October 29, 1973, Mr. Gough Whitlam proclaimed that "overseas capital must continue... in partnership with Australian capital" and "in some special energy cases we have an objective of 100% Australian ownership". In 1974 Mr. Pierre Trudeau stated: "The Liberal Party of Canada sets as an objective that new resources projects in the natural resource field should have at least 50% and preferably 60% Canadian equity ownership". FOREIGN INVESTMENT The situation for the foreign investor in the worldwide resource industry rapidly deteriorated from then on. New features appeared in mineral exploitation and operating agreements, centering not only on local government/local companies ownership but also on increased taxation. The new tax rate (mineral tax, royalty, and income tax) for the semi-government companies NCCM and RCM in Zambia became an effective 73%. Likewise the much publicized and discussed renegotiated Bougainville agreement brought dramatic increases in the total "take" by the PNG Government. More innovative forms of indirect taxation made their appearance and were added to the normal tax burdens of the mineral industry which already

Jan 1, 1985

PRESIDENT PRYDE: I am sure we have all listened with interest to the presentation of this subject. Anything that promises economy in coal mining today is welcomed by all of us. We will now have a discussion on this paper. If any of you gentlemen want to ask any questions, you may do so. I think we will develop something of interest and along the lines of economy. That is the first consideration of a coal mining man. MR. H. D. RANDALL: It is an interesting fact that in manufacturing we find the greatest economy results from giving a man the simplest possible act to perform, while there is nothing too complicated for a machine. If we want to put up a set screw we find it cheaper to let one man set it up and the other screw it in. The maximum economy is what we are after. Similarly, one of the points of greatest interest which Mr. Ickis has emphasized, is that this automatic equipment not merely dispenses with a manual operator, but also performs certain functions which the operator cannot do. It provides an inherent protection to the apparatus and service not possible under manual operation. We very rarely have cases of failure with these automatic equipments, .and consequently have the advantage not only of having eliminated the operator's salary, but also his mistakes. We have had a large number of these equipments in use for several years, so that their practicality is now thoroughly proven, and the trend of practice now indicates that the automatic idea will be further extended and will become universal for such classes of service. MR. D. C. McKEEHAN (Union Pacific Coal Company) : My notion of an automatic sub-station is one that does not necessarily require new equipment beyond the control equipment; so that any of you that are interested in it can take up with the manufacturers and find out how much it would cost to change any equipment. The greatest point I think is the fact it eliminates the several nationalities from operating the set, either on day shift or night shift. They can so lock the control as to make it impossible for anyone to start or stop it, except the one who has the authority. Another point I do not believe was brought out very clearly: It would be particularly advantageous to people who buy power, and if you could have several sets in parallel, it would allow you to start the shift with one set and cut in the additional sets as the shift progresses. There are various operations that stop at the end of each shift, and-one or two or three sets can be cut out, leaving the load on one set, providing the size of the copper is sufficient to supply all the points of the mine. Another point I want to bring out: In case you have quite a number of sets distributed along transmission line, the switch trips, the operation restores the service, and you may have several hundred-or in case with us, we would have several thousand-K. V. A. of Motor Generator Sets and Rotaries, that would be starting at once, and the switch would automatically trip out again. MR. RANDALL: Another form of control was described as the so-called supervisory control. This control could be started up so the starting would not be synchronous, but could be spread out over a sequence. MR. McKEEHAN: I think that is rather a theoretical consideration for coal miners. They are standing at the controller ready to shut it off unless there is some selective method of starting various sets- MR. RANDALL: I had in mind this supervisory control, one man, a central operator who would determine which station should start and he would take time enough to have his load come on gradually. He would not permit all the installations to come on simultaneously, but come on in succession: MR. McKEEHAN: You misunderstand me. Suppose we had the main switch at Rock Springs, which supplies several camps, and there are several

Jan 1, 1924

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

Introduction Surface mining is a business, and the objective of most businesses is to make as much money as possible within certain responsible constraints. Businesses normally measure their potential to make money by estimating the discounted cash flow rate of return on new projects or the net present value for ongoing projects. These estimators of profitability are calculated using the following well-known equation: [ ] where i is the year, n is the total number of years, A, is the after tax net cash generation in year I, r is the discount rate and NPV is the net present value. In its simplest form, when the value of r makes the NPV equal to zero, the discounted cash flow-rate of return (DCF-ROR) is defined. The maximum economically recoverable reserve is identified at the point where the NPV or DCF-ROR is at a maximum. Depending on the measure used (DCF-ROR or discount rate) for calculating the NPV, the definition of recoverable reserve will be different for exactly the same deposit. Maximization of the measure of profitability and the economically recoverable reserves should not be separated from the mining method and sequence of exploiting the reserve. The surface mining methods may involve multiple-pass development of the resource, mining to the ultimate limit in one pass or a combination of the two methods with backfill. Multiple-pass development When planning a multiple-pass mining operation, it is important to determine the width of pit expansions that are appropriate for a specific situation. Production personnel typically want wide, open work areas where operations can be set up to run at peak efficiency. While this is understandable, the trade-off between highly efficient production operations and an overinvestment in stripping should be carefully weighed. As long as safety is not compromised, a few cents per bank cubic yard increase in operating cost due to lower productivity by working in more confined spaces may well be offset by a decrease in the overall short-term stripping requirements. A mini study on productivity and cost should help quantify this cost before deciding on minimum phasing requirements. The bigger challenge associated with establishing smaller work areas is securing operations and management buy-in to marginally lower productivity when reporting results. When cost reduction is the important management goal and everyone is focusing on unit costs, one sometimes loses sight of the goal of total cost management and, even more importantly, maximum profitability. The first pit should be defined by the first grouping of recoverable mineral that has the highest after-tax unit value and forms a feasible mining unit. The assumed mining of the first pit should be followed by the assumed mining of the second most profitable practical pit or pit expansion. If this process of grouping and sequencing is followed until the profitability approaches zero, the general sequence required to extract the maximum economically recoverable reserve is identified. The curve in Fig. 1 is constructed for a rate of production, R, and a quality management strategy, Q, by calculating the NPV for a series of sequences, with each sequence assuming that the operations are terminated on successively lower profit pits. These values are plotted to form the curve in Fig. 1. If the operation ceases on a pit that has too high of a profit, opportunity is lost, and the NPV is lower than the maximum. The NPV curve peaks and starts to decline before the zero-profit pit is assumed mined. This occurs because the money invested in advanced stripping would have made more money invested at the discount rate than by mining the next pit expansion. Therefore, the maximum economically recoverable reserve is defined by the pit limit corresponding to the maximum NPV. There may be an opportunity to refine the definition of the "ultimate pit" around the maximum-value point. The precise definition of the ultimate pit early in the mine life may or may not be important today, depending on how far off in the future these limits will be reached. By the time an operation must decide on its last increment of economically recoverable reserve. much of the

Jan 1, 2000

By R. R. Sayers

The increasing use of hydrogen fluoride (annual consumption now exceeds 500,000 pounds (1)4/) directly and its occurrence as a byproduct of the utilization of fluorine compounds in the mineral industries, especially in metallurgical processes and in the refining of petroleum products, has aroused interest in its toxicity, and a brief review of the literature, with special reference to the hazard of poisoning in the mineral industries, seems to be opportune. Recently, residents in the vicinity of aluminum plants have been complaining of injury to livestock and vegetation as well as to their own health from the gases discharged into the air during operation of the plants, hydrofluoric acid gas apparently being the offender. The comparatively recent utilization of hydrofluoric acid in the alkylation process for the production of high-octane gasoline has raised the question of the hazard of poisoning in the petroleum Industry. In addition, the use of fluorine-containing refrigerants has extended the potential al exposure outside of industry (2).

Jan 1, 1945