Search Documents

By Eric Low

Raising capital by issuing debt or equity is necessary in almost every corporation. In the field of corporate finance, the raising of capital is a heavily-studied topic. However, some of what is studied on this topic in corporate finance is not applicable in the mining industry. There are also many financing options that were created for the mining industry such as flow-through shares, prepaid forwards, and royalty sales. The cyclical nature of the industry makes the risk-return profile of financings more difficult to estimate than in other industries. Additionally, the methods used to assess firm value are different than other industries, as the values of orebodies are not included on balance sheets. For precious metals companies, which are a hedge against most other securities, there are additional complications with determining investor expectations and cost of equity. This thesis puts forth a decision-making framework to explain mine financing choices from the perspective of mining companies. The approach is threefold. First, all of the major equity and debt financing instruments available to mining companies are presented and analyzed. Each financing method is assessed on a wide range of criteria. Next, these concepts are applied in case studies of four companies: BHP Billiton, Barrick Gold, Teck Resources, and Noront Resources. For each company, the overall choice of financing methods is shown and analyzed. The effect of financing choices on the weighted average cost of capital (WACC) is calculated. The final section deals with case studies of individual mine finance decisions during the past two years.

May 1, 2011

By R. Gallinger

In 1997, a group of Canadian mining companies met to review the Mine Environment Neutral Drainage (MEND) program and to consider future activities. They concluded that (1) that Canadian industry and Natural Resources Canada (NRCan) should fund a small secretariat in Ottawa to support technology transfer in Canada and, (2) that it was important for industry to continue the momentum of MEND on an international scale. The need for the International Network for Acid Prevention (INAP) was strongly endorsed by consultants, company, university, and government experts from Australia, Canada, and the United States who convened in Vancouver in February 1998. The initial focus was the development of a solid knowledge base covering the collective experience of INAP?s members to promote the dissemination of successful practices, the identification of knowledge gaps, and the formulation of effective research proposals. The sharing of information on past successes and failures alone was viewed as sufficient justification for the formation of INAP. INAP was officially launched in October 1998, and is now an effective, industry-based initiative to globally coordinate research and development in the management of sulphide mine waste. Significant improvements in the management of sulphidic mine materials through knowledge sharing, research, and development of technology by INAP will reduce liability associated with acid drainage. This paper will explore the international efforts and activities of INAP

May 1, 2005

By J. A. Finch

"A method of sampling and presenting bubbles for imaging for use in full-size flotation cells is described. The device (bubble viewer) comprises a tube attached to a sealed glass viewing chamber. The assembly is first filled with frother-containing water (to prevent coalescence) and the tube immersed at the desired location below the froth. For a few minutes bubbles are collected in the viewer free from slurry and are readily imaged. To reduce bubble overlap and the problem of defining the plane of view, the viewing chamber has a sloped side. Bubbles rise, encounter this slope, spread into a single plane and slide up. This simple expedient virtually eliminates overlap and provides an unambiguous focus plane - the underside of the sloped glass. The bubble image is captured and processed to give size data. The bubble viewer has been employed at several concentrators on different types of flotation cells. Examples of the images are given. The impact of position in the cell and the effect of changing gas rate on bubble size are illustrated. This technique provides a sensitive measure of the effects of process variables on bubble size.INTRODUCTIONDespite the extensive use of flotation in the mineral processing industry, the methodology employed for cell design is largely based on empirical rules rather than on first principles. One of the main reasons for this state of affairs is that the local flow structures encountered in industrial-scale machines are very complex. These flow structures are difficult to simulate under the controlled conditions of the laboratory and the difficulty to solve the mathematical models that treat the randomness of such flows also mean theoretical treatment is limited. Understanding flotation cell hydrodynamics requires reliable data, which involves the implementation of measurement techniques capable of performing both at the laboratory- and the industrial-scale, In addition, it is desirable that such techniques are amenable to automation to reduce extensive manual intervention in the data collection process."

Jan 1, 2002

By Son Hye Jin

Abstract ? KHNP is participating in the construction of Nuclear Power Plant both in Korea and UAE. ? We want to improve our construction project management process. ? So we are now developing the process model on nuclear power plant construction management. ? For the effective adoption of this process, we are planning to develop IT system. ? For the first step, we were established the Information Strategy Plan

Aug 1, 2013

By J. S. Brock

Magnetic, electromagnetic and gravimetric surveys have played an important role in the mineral exploration leading to the discovery of three major massive sulphide deposits in the Anvil-Vangorda area of the Yukon Territory. During 1964 and 1965 a saturation prospecting program, relying heavily on the integrated use of airborne and ground geophysical survey techniques, led to the discovery of the Faro deposit, which was subsequently proven to be a 63-millionton lead-zinc orebody. Locating the Faro deposit, the largest found to date in this overburden-covered region, involved an exploration sequence requiring the selection of a favourable geologic environment, aeromagnetic and electromagnetic surveys, property acquisition of anomalous areas and detailed ground geophysical surveys, followed by rotary drill testing, detailed gravimetric surveys and diamond core drilling.

Jan 1, 1973

By Donald J. Hallbom

"While pipeline hydrotransport is often the most economical way to transport large volumes of mineral concentrate, tailings, or fine ore slurry over long distances, it is in mountainous terrain that pipelining becomes particularly attractive. These areas are often remote, with limited existing infrastructure and few potential users willing to share in the cost of new infrastructure. The rugged terrain makes the construction of railways or roads suitable for haul trucks difficult and expensive. The elevation difference between the mine and the terminal means that the empty trains or haul trucks need to return up-hill, resulting in high fuel costs. With pipelines, this elevation difference may reduce or even eliminate the need for pumping. As a result, numerous pipelines have been built, or are being considered, in mountainous regions around the world including: Tasmania, New Guinea, China, Madagascar, the Rockies of North America, and the Andes of South America. However, there are technical difficulties that need to be overcome in the design and operation of mountain pipelines that do not affect pipelines on more level terrain. This presentation reviews some of these difficulties and methods used to overcome them.INTRODUCTIONPipeline transport of solid-liquid slurry (“hydrotransport”) is an important and cost-effective means of transporting large volumes of solids over long distances, especially from a single supplier to a single user (e.g., a concentrator to a port, a concentrator to a tailings dam, or a coal mine to a power plant). Pipelines are generally found to be more economically attractive than alternate transportation methods (e.g. trucking, rail, conveyors, shipping, or some combination) over the life of a project (Aude et al. 1974).Hydrotransport systems have been built in a variety of terrains, but it is in mountainous regions that pipelining becomes particularly attractive. These regions are often remote and generally do not have existing transportation infrastructure (roads, railways, navigable rivers). There are few potential users (e.g., farmers, other mines, forestry companies, etc.) who may be willing to share in the cost of new infrastructure. The rugged terrain makes the construction and maintenance of railways or all weather roads suitable for large haul trucks difficult and expensive. Mines tend to be higher than the receiving terminal (e.g. a port). This means that the empty trains or haul trucks need to return up-hill, resulting in high fuel costs. With pipelines, this elevation difference may reduce or even eliminate the need for pumping. Pipelines are easier to construct than roads and railroads in these areas for several reasons, including:"

Jan 1, 2006

By Jerry Ran

Stope back caving in a mine using open stope mining interrupts the planned mining sequence and causes oversize muck and dilution with adverse economic implications. As many underground mines are mining or have plans to mine at depth, stope back caving could have significant impact on the mine sustainability. Therefore understanding the caving mechanism is important in preventing future occurrence and improving the mine economic performance. Falconbridge Ltd Kidd Mine is an underground mine using open stope method producing more than 2 million tonnes per year. Its current lowest mining level is approximately 2070m below surface and the lower portion of the orebody is being developed. In years of 2002 and 2003 the back of three stopes of approximately 1900m and 2040m below surface caved and caused substantial mining difficulties at the mine. As these caved stopes are subject to stress concentration, seismic activities and near major geological structures, the caving mechanism is much more complex than that of stopes near surface. In addition to the recorded caving history by site observations, the mine carried out cavity surveys and test drilling to define the caved profiles. The mine seismic monitoring database provided information at these stopes. Stress modeling work conducted by an external consultant provided the stress patterns at the caved stopes. Based on the field collected data and stress and seismic information, this paper presents details of the stope caving process and cavity surveyed profiles, reviews the predictability of the stability graph approach for these cases, discusses the caving mechanism and proposes preventive measures to stabilize the stope back.

May 1, 2004

By F. Habashi

The pioneer work on pressure hydrometallurgy was conducted in Russia at the end of the nineteenth, and the beginning of the twentieth centuries, by Karl Josef Bayer (1847-1904) and Vladimir Nikolyevitch Ipatieff (1867-1952), both working independently in Saint Petersburg. Bayer was studying pressure leaching while Ipatieff was studying the precipitation of metals and their compounds by hydrogen under pressure. Gradually, industrial applications took place first in the aluminium and later in the nickel industry. Today, the technology is well established in a large number of industries, such as uranium, gold, zinc, titanium, tungsten, and more recently copper.

Jan 1, 2004

By B. M. Hamilton

"IntroductionTHE PROCEDURE and technique for drilling holes has probably undergone as great a change during the past ten years as any one of the other operations conducted in hard-rock mining. During this period, we have seen a change from the heavy leyners and drifters to the light jackleg type of drill machine; from steels that were forged and hardened on the bit end to the inserted •carbide-tipped rod, from the necessity of providing special bit-end fabrication and beat treatment of shank steels to the simple grinding or turning of a plain section on a shank with no heat treatment required for bit attachment.When the steel maker was first called upon to manufacture a hollow drill rod, it was required that the steel must not only have sufficient strength and fatigue resistance to cope with the stresses of service, but also must be capable of being heat treated on the bit end to a high hardness for resistance to wear and abrasion . Little was known at that time about alloy steels and the beneficial effects to be gained from additions of chromium, nickel , and molybdenum. So it was that the plain 0.80 per cent carbon analysis was selected, since it had already proven to be a suitable grade for chisels, hammers, and other such shock tools. This grade has long endured the test of time and is still used in considerable tonnage today, particularly by the construction industry.As the metallurgist learned more about the influence of alloying elements, a new hollow drill analysis was placed on the market in the early 'thirties'."

Jan 1, 1954

By Peter A. Eshun

This paper studies two methods that account for risks associated with gold mining projects such as mineral risks and country risks. The first method is sensitivity analysis, which investigates the effects of a change in any economic parameter such as operating cost, capital investment, gold price or taxes on the viability of the project. The second method is Monte Carlo Simulation technique, which takes into consideration the simultaneous random variation of the economic parameters on the project's viability. An automated simulation cash flow model has been developed as part of this paper. Sensitivity analysis and the simulation model have been used to investigate the economic viability of the Dokrupe Gold Project (DGP) serving as a test case. It is concluded that, the Monte Carlo Simulation technique gives a more realistic judgement of the economic viability of gold mining projects.

May 1, 2004

By M. C. Bétournay

Hydrogen fuel cells are a known technology, having been applied to stationary (e.g. equipment, buildings, and power plants) and vehicle applications (e.g. transit buses and space shuttles). There is currently a growing need to provide alternate power systems to diesel fuel for underground mining vehicles to improve underground air quality and reduce production costs and greenhouse gas emissions. To date, however, fuel cells have not been exposed to underground mine air and physical conditions. A testing program was carried out to provide information on the vulnerabilities of fuel cells as part of a number of proof-of-concept projects to apply hydrogen power to underground mining vehicles. The fuel cell type of choice for the industry, the proton exchange membrane, would function at the range of surface operations, and use hydrogen that is stored under low pressure and risk. A small fuel cell stack was tested in a cooperative project between CANMET, the Fuelcell Propulsion Institute, Inco, the Ontario Ministry of Labour, Sandia National laboratories, and H-Power. This article will review the tests carried out to measure the effects from high humidity, mineral dust, diesel emission gasses and diesel particulate matter, as well as from shock and vibration provided to the unit in underground conditions at Inco?s 175 Orebody minesite and Stobie mine. The test results provided will show that the unit was not affected by the underground conditions; physically and electrically, the unit performed without any reduction in operation or adverse effects imposed

May 1, 2005

By G. Bonnell, W. Lidkea, M. C. Bétournay, E. Edwardson

"Hydrogen fuel cells are a known technology, having been applied to stationary (e.g equipment, buildings, and power plants) and vehicle applications (e.g transit buses and space shuttles). There is currently a growing need to provide alternate power systems to diesel fuel for underground mining vehicles to improve underground air quality and reduce production costs and greenhouse gas emissions.To date, however, fuel cells have not been exposed to underground mine air and physical conditions. A testing program was carried out to provide information on the vulnerabilities of fuel cells as part of a number of proof-of-concept projects to apply hydrogen power to underground mining vehicles. The fuel cell type of choice for the industry, the proton exchange membrane, would function at the range of temperatures encountered in underground and surface operations, and use hydrogen that is stored under low pressure and risk.A small fuel cell stack was tested in a cooperative project between CANMET, the Fuelcell Propulsion Institute, Inco, the Ontario Ministry of Labour, Sandia National laboratories, and H-Power. This article will review the tests carried out to measure the effects from high humidity, mineral dust, diesel emission gasses and diesel particulate matter, as well as from shock and vibration provided to the unit in underground conditions at Inco’s 175 Orebody minesite and Stobie mine. The test results provided will show that the unit was not affected by the underground conditions; physically and electrically, the unit performed without any reduction in operation or adverse effects imposed."

Jan 1, 2005

By D. Komljenovic

This paper presents the use of queuing theory in truck fleet sizing in open pit mining operations. In the first part, a methodology is developed by which an optimal ratio between the size of shovels and trucks may be determined. The second part gives the fundamentals of the queuing theory and its application in analyzing shovel and trucks. The stochastic character of involved times (loading, truck cycle, etc.) is taken into consideration. Using the above theory, the optimal truck fleet size in actual conditions may be estimated. Minimal operating cost of the working system (shovels-trucks) represents the basic requirement of the analyzed process. The methodology was validated on Caterpillar front-shovel ? truck combinations.

Sep 1, 2004

By R. H. Colquhoun, A. W. Bolland, H. J. H. Pieterse

"American Barrick Resources Corporation acquired the goldstrike property in north eastern Nevada in early 1987. Since that time, the company has undertaken an extensive development program. This paper will overview the milling, autoclaving, and heap leaching facilities which are part of the $400-million Betze development plan. Gold production at the Mine has increased from 40,000 ounces per annum in 1987 to more than 500,000 ounces in 1991. And in 1992 Goldstrike will be the single largest North American gold mine when it produces 1,000,000 ounces.1. SUMMARYAmerican Barrick Resources Corporation acquired the Goldstrike property in northeastern Nevada in early 1987. Since that time, the company has undertaken an extensive development program. This paper will overview the milling, autoclaving, and heap leaching facilities which are part of the four year, $440- million Betze Development Plan. Gold production at the Goldstrike Mine has increased from 40,000 ounces per annum in 1987 to more than 500,000 ounces in 1991. In 1992, Goldstrike will be one of the largest North American gold mines, when it produces appro approximately 1,000,000 ounces.2. INTRODUCTIONAmerican Barrick Resources Corporation is in the process of developing the Betze gold deposit, located on Barrick's Goldstrike property in the Carlin area of Nevada, U.S.A.The Goldstrike Mine has 17.9 million ounces of proven and probable reserves and an additional 460,000 ounces of possible reserves. Additionally, the Purple Vein deposit, one mile north of the Mine, is expected to add at least 4 million ounces of reserves by year end 1991.The Goldstrike ore body contains both oxide and sulphide ore. The largest part of the reserves are contained in the high grade, deep sulphide ore. Mining of the sulphide ore contained in the Betze deposit involves the removal of large quantities of overlying oxide ore. Oxide ore is treated through one of the following processes:-"

Jan 1, 1992

By S. Chung

Mining in highly stressed ground conditions has been an increasing challenge at the Brunswick mine. Over the past 30 years, two large regional pillars were established on the 1000 m Level to support the ground for safe extraction of the surrounding ore. The South Regional Pillar contains about 5 Mt of ore and the North Regional Pillar has about 3 Mt of ore. In the fall of 2000, mining activities were suspended following a series of ground movements around the South Regional Pillar along weak geological structures. After extensive geotechnical investigations, a decision was made to carry out a mass de-stress blast in the West Ore Zone (WOZ) to cut the principal stress across an area of 135 m along strike and 86 m high. At the end of July 2001, the WOZ mass blast was successfully initiated. Following this success, the mine decided to take a similar approach to de-stressing the North Regional Pillar (NRP). The final mass blast was taken in early February 2003. Advanced blasting technologies, including state-of-the-art electronic detonators and blast simulation, played an important role in achieving the successful blasts. The high precision of delay timing and long delay duration of the electronic detonators ensured accurate and reliable initiations of over 800 blastholes in the WOZ mass blast. Orica’s DMC_Blast (Distinct Motion Code) simulation code was used to study different blasting blocks for the desired timing in the initiation sequence. This paper describes the process of applying electronic detonators in complex blasts, and discusses how blast simulation results were interpreted to guide engineering design of the mass blasts.

Jan 1, 2005

By P. K. Frempong, S. D. Butt

"A case study for the application of a novel geostatistical technique for resource estimation of a narrow steeply dipping, gold-silver mineralized quartz vein deposit is presented. The technique is novel in two respects. First, mineral grades are kriged directly rather via the accumulation method more often applied to vein deposits and, second, a modified 2D ordinary kriging algorithm is used that allows the calculation of a single grade and variance for irregular shaped blocks of varying sizes. The objective of this investigation was to evaluate the suitability of this novel geostatistical technique for resource estimation of the Poura mine deposit and, if appropriate, to lay a firm foundation for future geostatistical work at the mine.The reserve estimation concentrated on the remnant ore blocks and pillars in both underground and surface workings. The data, which was collected in 2D coordinates with grade and vein thickness values, was first analyzed statistically and used to compute experimental semi-variograms. Appropriate semivariogram models were fitted and various aspects of the estimation technique were evaluated using cross-validation error analysis, with acceptable results. A block kriging computer program called Krige2D was developed to implement the modified 2D kriging algorithm and calculations. Production data were not available to evaluate the computed block resources, but they were compared with a previous resource data determined using an arithmetic approach. The geostatistical technique estimated slightly higher grades but lower overall tonnages as compared to the earlier arithmetic estimates."

Jan 1, 2004

A case study for the application of a novel geostatistical technique for resource estimation of a narrow steeply dipping, gold-silver mineralized quartz vein deposit is presented. The technique is novel in two respects. First, mineral grades are kriged directly rather via the accumulation method more often applied to vein deposits and, second, a modified 2D ordinary kriging algorithm is used that allows the calculation of a single grade and variance for irregular shaped blocks of varying sizes. The objective of this investigation was to evaluate the suitability of this novel geostatistical technique for resource estimation of the Poura mine deposit and, if appropriate, to lay a firm foundation for future geostatistical work at the mine. The reserve estimation concentrated on the remnant ore blocks and pillars in both underground and surface workings. The data, which was collected in 2D coordinates with grade and vein thickness values, was first analyzed statistically and used to compute experimental semi-variograms. Appropriate semi- variogram models were fitted and various aspects of the estimation technique were evaluated using cross-validation error analysis, with acceptable results. A block kriging computer program called Krige2D was developed to implement the modified 2D kriging algorithm and calculations. Production data were not available to evaluate the computed block resources, but they were compared with a previous resource data determined using an arithmetic approach. The geostatistical technique estimated slightly higher grades but lower overall tonnages as compared to the earlier arithmetic estimates.

Feb 1, 2004

By J. Lee, R. G. Rosehart

"The basic problem of arsenic contamination from mine water is discussed. Effective methods of removal involving chemical precipitation, activated carbon adsorption, ion exchange and reverse osmosis are discussed. As well as an economic analysis, detail is also paid to other ions in solution which are removed simultaneously.INTRODUCTIONThe object of this paper is to review arsenic and its removal from gold extraction plant effluents. The first method considered is chemical precipitation. A second method is sorption processes, such as ion exchange resins and activated carbon adsorption. A third method is the possible application of reverse osmosis for the treatment of mine waste waters containing arsenic.Arsenic pollution in the gold mining communities of Canada and Ghana have been extensively studies (l, 2). Lynch(3) Shabunin, Gutman and Kogan( 4), Hollo, Troth, Vennes and Illinigi (5) and Hau(6) have reported their removal methods of arsenic by chemical precipitation, ion exchange and biological methods. Their conclusions were that the precipitation with Fe2+ and Fe3+ ions was most effective.Scope of the ProblemInitial aspects of this research program involved a detailed analysis of the operation of a gold extraction plant located in Canada. The name and location of the mine is proprietary information. Figure 1 gives a basic process schematic with the main tailing streams identified.Table 1 gives information as to the various mine streams and their physical and chemical composition. In this study, primary attention is paid to the removal of dissolved arsenic from waste waters. Solids from this type of operation can always be back-filled. As could be anticipated, the dissolved As content of the primary flotation tailing stream is very low. The dissolved As level in the secondary processing stream and the roasting quench water is quite high. The reason being that at this stage of the process, the arsenic has been freed from the arsenopyrite forms."

Jan 1, 1972

By Hani S. Mitri

Overhand cut-and-fill mining of narrow vein orebodies inevitably leads to the creation of horizontal pillars. As the thickness of the overlying crown pillar diminishes, stresses build up in the pillar. More often than not, this situation causes an increased level of seismicity and possible pillar burst. One well-known strategy to reduce the hazard of crown and sill pillar burst in cut-and-fill vein mining is that of destress blasting. The paper first reviews the methods used for the monitoring and assessment of potential pillar burst in narrow vein cut-and-fill mining. The influence of horizontal stress, mine depth and pillar thickness on stress build-up in the crown pillar is examined through a characteristic narrow vein numerical model. The paper then presents, with reference to three mine case studies, the benefits of destress blasting and the factors affecting its success as a ground control technique.

Oct 1, 2001

By Gilles Landry, Mohamed Ourriban, Pierre Pelletier, Ahmed Bouajila, Claude Gagnon

"This paper summarizes the work carried out to develop and implement the gold cyanidation by size class (CSC) process, a novel concept aiming to reduce cyanide consumption.First, the authors will present the methodology and results of laboratory tests conducted to evaluate the response and the expected gains for the selected ore when submitted to the CSC processing. In the second part, focus will be on the methodology behind the CSC scheme development prior to its implementation at Sleeping Giant Mine concentrator. Finally, the evaluation of the modified circuit performance (operating since July 2007) will be addressed as a reduction of cyanide consumption by more than 30% and of free NaCN in the tailings by more than 50% is confirmed.INTRODUCTIONCyanidation is the most widely used technique to extract gold from hard rock ore. Its use of oxygen as an oxidant still makes it the cheapest process available after more than a hundred years. Unfortunately, gold cyanidation is known to be a slow process that requires high consumption of cyanide. In fact, cyanidation plants are designed with very long residence times (Habashi, F., 1967). Drawbacks of long cyanidation times are, among others, loss of gold in tailings, high reagent consumption and high capital investment and maintenance costs.Responding to their members expectations for the improvement of cyanidation process, COREM undertook a challenging R&D program covering the development of alternative concepts (processes) and the understanding and solving of mass transfer, gold passivation and process water chemistry problems. One of the interesting findings of the R&D program is a patent pending process technology based on the cyanidation by size class (CSC) concept (Côté and Ourriban, 2004; Gagnon and Ourriban, 2007; Gagnon and Ourriban, 2004).The new technology was tested at the Sleeping Giant concentrator, a plant member of COREM. The existing flowsheet was modified in order to implement the CSC process in the full-scale plant. The plant has been operated using the modified CSC based process since August 2007. Laboratory testwork was conducted prior to the industrial application in order to properly design the new process scheme. The modifications included:1) Reclassification of the grinding circuit product through an hydrocyclone2) Leaching of the coarse size fraction3) Addition of the fine fraction to the coarse leaching circuit tails."

Jan 1, 2009