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By O C. Aitken

Mining project developers are committed to taking on all the challenges and obligations of financial risk management. It is interesting that our current models of project finance have not changed markedly in principle for some 700 years, yet the rules which prepare the way for effective project assessment and subsequent loan management still do not seem to be well understood by project or corporate developers. Probability and gravity fill the opposing trays of the golden balance of financial risk. Understanding the relationship between these opposing, but intimately related elements is critically important for successful risk management. It is important to move beyond the qualitative approach and use quantitative methodologies to measure the financial impact of the occurrence of each major risk. We live in a world where the only constant is change and thus it is not surprising that a bankerÆs life is still governed by assessing, measuring and pricing risk. Banks are attracted to funding well managed companies with strong cash flow projects. But we are more risk averse compared with the credit appetites of late last century. This attitudinal shift has resulted in tougher term sheets for the early 21st century, encompassing more conditions, warranties, undertakings and stronger cash sweep provisions. Banks require well balanced portfolios to achieve an acceptable spread of risk, thus there is a more restricted market for small company lending than that available to large multi-project corporate entities with less concentrated risk profiles. Because of this focus, junior company debt finance remains comparatively expensive and especially so for more challenging geographical and political environments.

Jan 1, 2004

By E. Fritz

This paper reviews the history, developments and 10 milestones of the oxygen steelmaking processes, with a special focus on conventional autothermic converters, high-speed converters with a blowing rate up to 5 m3n/t min and allothermic converters with coal addition, post combustion and the possibility to increase the scrap rate up to 50%. Related operating results are introduced. A new process route, which is based on hot metal and chromium ore, is outlined. The cost advantage for the production of 304 stainless steel grade is higher than 100 USS/t. The synthesis of EAF and oxygen converter steelmaking, a comparison of decarburization rates, refining combustion burners for optimized oxygen-management in EAF and an example for a large advanced EAF are outlined. Possibilities of flexible steelmaking and the growth and outlook of worldwide oxygen steelmaking are described.

Jan 1, 2004

By R. J. Fruehan

Oxygen steelmaking (OSM) is not only the dominant steelmaking process but defines the structure of the industry. There are a number of myths regarding the future of OSM, which are false. These myths include that the EAF will become the dominant process in the near future, it is less costly to produce steel in an EAF and OSM is a mature technology and no new developments are occurring. These myths are shown to be false. Selected new developments are discussed such as post combustion, recycling of waste oxides, slag splashing and sensors.

Jan 1, 2004

By Larry M. Southwick

Considerable process and equipment development and analysis were conducted during design of Freeport Sulfur's laterite nickel facilities in the late 1950's. These covered ore concentration at Moa Bay, Cuba, and concentrate refining at Port Nickel, Louisiana. Both facilities utilized acid pressure leaching and product refining steps that were similar to those later used elsewhere in the laterite processing industry. Unfortunately, developments in Cuba removed the Moa Bay facilities from Freeport control. This deprived the project of a start-up that would have allowed thorough resolution of difficulties and a quicker attainment of production capacity. This meant lost opportunity to positively prove and complete the technology when optimum resources and staff were available. This paper reviews the original rationale of how design was developed via laboratory, bench scale and pilot studies by Freeport Sulfur. Some later operating problems will also be discussed. This case is unusual, but the lessons learned may be instructive in the application of difficult and complicated technologies, as well as the need to understand and retain access to the original development and design activities Keywords: Moa Bay, Freeport Sulfur, Port Nickel, acid pressure leaching, pilot plant, pachuca, Chemical Construction, pressure letdown, cobalt, titanium

Jan 1, 2004

By Ricardo A. Valls

The Sechol Nickel-Cobalt Laterite Project is located in East-Central Guatemala, 140 km northeast from Guatemala City. In-situ resources in the immediate Sechol area, including those on other mining concessions contain 133 million tonnes of mineralization, grading 1.5 1% nickel. Considering the ever-increasing market for these metals, and the potential quick return on the initial investment, Jaguar Nickel Inc. is confident that by late 2006, it will be producing the first nickeltcobalt hydroxides from Guatemala. The path from now until the production stage passes through a pre-feasibility study, scheduled for completion by mid 2004, and bankable feasibility by mid 2005. Jaguar's objective, however, is not only to have a producing nickel-cobalt mine by late 2006, but also to continue with the exploration work in order to make Guatemala one of the world's leading nickel-cobalt producers. The Sechol group of deposits is conformed of several lateritic pockets, delimited by tectonic faults, and hosted by ultramafic rocks of the Sierra de Santa CW. ophiolitic belt that intruded the Maya Continental Block during the Early Tertiary age. The intrusive is mainly represented by a layered sequence of dunites, peridotites, and pyroxenites, usually strongly serpentinized. Existing data indicate that these rocks underwent fractional crystallization, and probably some degree of magma mixing and contamination previous to their main tectonic event. The most complete profiles are usually present over weathered dunites and serpentinites, while on top of the less altered pyroxenites, there is usually the formation of only a limonitic zone. The relative complexity of the ophiolitic belt explains the variety of mineral resources in the area, which include Ni-Co-Fe laterite, chromite, bauxite, magnesia, and also has the potential for gold, PGMs, and precious and semi-precious stones such as jade, nephrite, and chrysoprase. Metal recovery from the Sechol deposit will be based on an atmospheric chloride process, followed by solution purification, production of an intermediate nickellcobalt hydroxide suitable for sale, and finally acid and magnesia recovery by standard spray roasting technology. The chloride process will allow exploitation of the whole lateritic profile to produce 20,000 Mt of nickel hydroxide and 800 Mt of cobalt hydroxide per year. The exploration work completed to date has concentrated mostly on the Sechol group of deposits, representing less than 5% of the current land position of Jaguar in Guatemala. Within Sechol, the company has identified a large pocket of more than 5 Mt of laterites grading 2.1% nickel and 0.08 % cobalt as a startup pit "El Inicio". Including the work previously completed Keywords: Laterite deposits, Ophiolitic Belts, Central Guatemala, Nickel, Cobalt

Jan 1, 2004

By Dennis J. Kemp

Laterite projects are found in the tropical and sub-tropical regions of the world. As a result severe meteorological situations accompany such projects, often in regions of high seismic activity and political uncertainty. Frequently, socio-economic development supported by political interest is a major driver for development, while environmental protection imposes numerous stresses on the project. This paper will review and examine the many social, environmental, technical and financial issues that a mining and extraction process is subject to during development. The options that must be evaluated will be discussed in the context of sustainable development. Issues of project standards and cultural impact through to long-term issues such as greenhouse gasses and climate change will be assessed in redirecting project environmental norms. Although a rationale for sustainable project can be developed many long- term uncertainties around issues remain. Keywords: sustainable development, communities, social issues, standards, energy, waste management, consultation, agreements

Jan 1, 2004

The current boom being experienced by mining, coupled with a shortage of professionals, will mean those in the industry will have many choices. It may be easy to become carried away and run with the highest bid or the biggest promise. Without planning, however, the ærightÆ opportunity may be missed and there may be some long-term consequences. There are many choices of paths in the industry to suit work preferences, life cycles and to achieve a balanced life. People in mining have changed jobs and companies frequently û which means new leaders need to take greater responsibility in charting their own direction. Career options need to be carefully assessed and aligned to personal values and preferences. Emphasis is given on gaining site experience early on.This paper examines strategies for career planning, which incorporate life cycles, education and what is meant by a balanced lifestyle. Two tools are identified as being helpful in ensuring strategies can be successfully executed. They are ævisioningÆ and æinfluenceÆ.To make the mining industry more attractive, we need more creative solutions around advances in technology and organisation of work. It also needs the input and leadership of new entrants in to the industry to assist in its survival. New leaders are encouraged to voice a vision and effectively influence their companies. New leaders have little authority and need to learn how to effectively influence. We as a mining industry need to listen, be open-minded and give it a go.

Jan 1, 2004

By B, T Norgate, S Sanetsis, R Davidson

Global cement production accounts for about five per cent of man-made CO2 emissions (WBCSD, 2002). Such operating practices will increasingly be considered unsustainable, unless significant reductions in environmental impact can be realised by the industry.Slag is a high volume waste product from ironmaking, with about 300 kg of slag being produced per ton of iron. Critically, one ton of slag waste, if used as a replacement feedstock for Ordinary Portland cement (OPC), can prevent around one ton of emitted CO2 since no calcining is required. Slag cement blends can also show superior properties compared to OPC, such as lower heats of hydration and higher late strengths, but more development is needed to overcome their low early strengths. Rapid quenching of molten slag is required to produce æhydraulically-activeÆ binder when reacting with OPC; but water quenching can also require between five to ten tons of water per ton of slag at the plant. æDryÆ granulation (atomisation) is emerging as an alternative technology, the resulting solid product does not require drying, and possibilities exist for recovering heat energy from the hot slag.CSIRO Minerals has well-developed skills and equipment in pilot-scale pyrometallurgical treatment, and granulation of molten slag, including traditional wet, and also dry methods. Techno-economic desktop studies can also be used to help quantify factors such as value-adding of treated waste products, potential reductions in CO2 emissions and carbon credits, reductions in water consumption, and the possible decreased energy costs associated with fine grinding of dry slag granulate.The authors will present preliminary results from slag atomisation/dry granulation testwork (0.5 - 2.5 kg scale) and associated modelling studies, conducted using a æsyntheticÆ and industrial ironmaking slag. Outcomes from a techno-economic study on production of cement utilising wet or dry atomised slag granulate will also be discussed in detail.

Jan 1, 2004

By Dan Witkowsky

For the 36th consecutive summer, the Colorado Mining Association Education Foundation and the Colorado School of Mines have sponsored “A Total Concept of the Mining Industry” for kindergarten through grade 12 teachers. Teachers from 34 states, plus the District of Columbia and two foreign countries, have graduated from the four-week course. They received six hours of recertification credit. This summer 31 teachers from Colorado, Kentucky, Virginia and Alaska completed the program. The course is unique from other shorter courses in that it solicits teachers of all disciplines from all K-12classes. In addition to the expected earth science and mathematics teachers, the Class of 2004 consisted of educators who teach music, chemistry, biology, social studies, history, basic English and world history. Others in the program included those who teach American history, physical and life science, remedial reading, consumer/family studies, “world of work,” language arts, engineering technology, environmental science, world geography, human anatomy and physiology, and business.

Jan 1, 2004

Minerals processing operations use a significant quantity of fossil carbon to provide energy and as reductant. Greenhouse gas emissions from the use of this fossil carbon contribute to the global increase in anthropogenic CO2 emissions to the atmosphere. In the spirit of fostering thinking about a step change in this situation, this paper explores opportunities for the use of sustainable carbon from biomass sources in a range of mineral processing operations. The exploration shows that many common processes are contenders for fossil carbon replacement and that feasible scientific research by minerals processing technologists would add to deeper understanding of the potential for a sustainable bio-carbon based industry. It is also shown that there are many dilemmas on the social, environmental and economic fronts to be solved before a biomass based industry could become a reality.

Jan 1, 2004

By Zetti Gavelán

Globalization and the search for new ore deposits inevitably lead to investment in foreign markets. Investors need to be aware of the effect of their venture on regional, social and economic issues when they invest. Decades of detailed statistics from various sources can be integrated and analyzed to predict the social-economic impact of investment, thereby mitigating risk. To this end, the correlation among variables such as foreign direct investment into mining (FDIM), reserves, and socio-economic indexes is examined. The investigation focuses on South America from 1992 to 2000. Throughout the past decade, South America has benefited from capital investment from more developed countries. This huge investment by the mining industry has impacted the South American economies and can be measured directly using the FDIM. Other economic variables investigated include mining gross domestic product, direct employment, and human development indexes. The correlation is based on data compiled from the World Bank, international risk assessment agencies, the United States Geological Survey (USGS), and the information agencies of various South American countries. Initial analysis of the economic data suggests various expected outcomes. For example, foreign investors may disregard a measured, highly negative country risk in deference to the quality of its mineral resources. It is important to note that the standard measures of country risk published by investment analysts are not industry or investor-specific. In the case of the investor, the level of accepted risk is based on their managed investment portfolio. It is noted that arguments for level-playing fields may be the antithesis of globalization. The discovery and exploitation of ore bodies in a globalized environment necessitates the development of economic measures that standardize mining-specific risk variables and trends. The latest published information on the security of mineral investments in South America is investigated by integrating databases of economic, geologic, production, human indexes, and risk ranking.

May 1, 2003

By Andrew Abraham

Continual improvement is the key to success in today?s competitive global arena. You require tools that promote dynamic quality management, deliver cost savings to your bottom line and provide the foundation for process improvement. ISO 9000 and ISO 14001 management systems and OHSAS 18001 are those tools. Since their inception, the benefits of ISO management systems and registration have been touted as the way to achieve better bottom line results. This spurred many companies to embark upon the road to registration with high expectations. The potential benefits of ISO management system implementation and third party registration that are commonly provided by Registrars and consultants are compelling adverts for success. ISO 9001:2000 is promoted as an essential tool for systematic efficient and affective management controls that provide a framework for analyzing errors and improving a company?s internal operational processes. It also allows companies to comply with internal and external customer and regulatory requirements thus continually improving the quality of their products and services and thus enhancing customer satisfaction. This, in turn, leads to greater customer recognition and increased market share. ISO 14001 implementation and registration may assist your company in reducing its litigation risk, raw material and energy consumption, waste disposal costs and possibly non tariff trade barriers. It should also provide continuity of operations, enhanced operational efficiency and consequently a competitive advantage in the market place. Registration of your ISO 14001 management system should also improve your company?s profile and credibility leading to regulatory flexibility and improved community goodwill. All of this will be a catalyst for improved morale and pride by employees and management alike. Likewise, OHSAS 18001, the latest certification specification for Occupational Health and Safety Management Systems supports Occupational Health and Safety legal and regulatory obligations and compliance, manages & controls Occupational Health and Safety risks and improves performance, safety culture and efficiency. OHSAS 18001 is an audit certification, and not a legislative requirement. Suggested benefits of implementation include reduction in accidents, lost time and associated liability and insurance costs and improving reputation and credibility through demonstrated commitment to health and safety. The foregoing increases access to new customers, joint venture partners and financing The skeptics say these are motherhood statements and lack corroborative evidence, i.e., ?Show me the money!?

May 1, 2003

By Knud Sinding

Mining firms are widely criticised for their adverse impacts on the environment. At the same time many firms in the industry devote extensive resources, both financial and managerial, to the reduction or elimination such impacts. Very considerable improvements have been made, although these are sometimes overshadowed by a few high-profile accidents, such as the occasional collapse of a cyanide-containing tailings dam. In parallel, much effort is also directed at projecting a positive environmental image, as witnessed by extensive environmental reporting, both on paper and increasingly through web-platforms. Mining projects today almost invariably involve some form of environmental protection. In industrial countries regulations in this area are extremely stringent, as is enforcement. In less well developed countries, regulation and enforcement may be weaker, but firms are in many cases and for a number of reasons committing themselves to high levels of environmental protection, even if they might get away without doing so. Research in the area of environmental performance of mining firms has so far paid much attention to concepts such as sustainability indicators and the sustainability of individual firms. Given the still raging debates about the appropriate way to determine the degree to which any given firm is sustainable (Welford 1995) as well as the usefulness of what will in the final analysis be a value judgement, anyone on the sidelines of the debate will come back to the fundamental issue, how is knowledge that a particular firm has been judged ?sustainable? going to be made use of. This issue remains unresolved, which may explain the lack of progress in formulating a useful definition of a sustainable firm The question addressed in this paper is not so much about what firms are doing on the ground or in any particular case of environmental protection, but more in the subsequent use of these efforts - and by extension - on the overall direction of corporate environmental strategy. The fundamental problem facing all mining firms is that they cannot easily benefit from unilaterally reducing their environmental impact. The firm can of course avoid liability and keep a variety of stakeholders happy and hence experience lower costs of obtaining the [input] resources they need (in a broad sense, not just minerals), but this represents only part of the opportunities available form pursuing an environmental strategy (Reinhardt 2000). The other part, which may have an enormous potential, involves the concepts of competitor management and product differentiation. The logic of keeping stakeholders happy has been most forcefully argued by Pfeffer and Salanchick (1978) who link the behaviour of firms in all domains to their ability to obtain the resources they need, at a cost that is lower than it would otherwise be (Pfeffer & Salanccik 1978). Several varieties of strategy can be included under this heading, including cost reduction and risk management. The alternative logic is to convince customers that they want to pay more for minerals supplied by mining firm X or directly attributable to mine Y, or by making all mineral users pay more. These two strategies, which may be referred to as product differentiation and competitor management, respectively (Reinhardt 2000) are related to the demand side of mineral supply, whereas cost reduction and risk management are related to the supply side. Mining firms have not pursued the demand side very much, if at all. This is probably due to the extreme difficulty of moving mineral products, bulky and unglamorous as they are, away from their

May 1, 2003

By Adrian Dance

The Antamina orebody is a geologically complex, polymetallic skarn located in the Peruvian Andes. A range of copper and copper-zinc ores are campaigned separately through the concentrator producing copper and zinc concentrates as well as lead and molybdenum by-products. Ore type classification at Antamina is based on chemical assays; geological or lithological variations are not considered. Consequently, each ore type demonstrates a wide range of concentrator performance. Antamina is currently implementing a system to track ore movements from the shovel face to the concentrator. Relatively sophisticated models of the ROM and coarse ore stockpiles ahead of the mill will be used to account for the variable delay between mining and milling. One of the numerous benefits of ore tracking is the ability to directly associate the measured concentrator performance with a physical location in the orebody. Using existing mine planning software, three-dimensional models can be created of such performance measures as metal recovery, concentrate quality, operating cost and reagent consumption. Such a database of information allows the true value of different ore sources to be determined. The value of an ore source is conventionally measured as metal content (individual or combined ?equivalent?) with a cut-off grade applied to indicate some base level operating cost. However, the true value of an ore source should include dynamic factors like haulage cost, reagent use, smelter penalties and even prevailing metal prices. If an ore source is considered from all perspectives rather than simply its potential to deliver value, the concept of ?ore? becomes more flexible. Any ore source that reveals itself to be unprofitable can be eliminated from the mine plan or possibly blended with others to improve its value. The ability to predict mill performance ? and thereby profitability ? is a powerful tool. In an operation such as Antamina, where managing ore sources, campaigns and the delivery of a variety of concentrates in a narrow timeline to customers is a daily challenge, prediction is the key to success and improved efficiency.

May 1, 2003

By Arthur E. Morris

Fifty years ago when Professor Yazawa began his career, the field of process simulation and modeling was in its infancy. Since then, tremendous progress has been made in our ability to model metal production flowsheets from mine to refined metal. This progress has come about by parallel developments in basic understanding of process chemistry and in computational techniques. This paper will review the progress made in process understanding and modeling in lead, zinc, and copper metallurgy from its inception to the present, and the role of Professor Yazawa's work in furthering this progress. Specific examples wi1\ be given for the sintering of lead concentrates, slag fuming, zinc concentrate roasting, flash smelting of copper, and pyro-extraction of zinc. Factors limiting further progress will be described.

Jan 1, 2003

By Karl J. C. Harries

"The Table of Contents that follows is only an example and is the Table of Contents from an actual negotiated agreement. It is merely intended to show how an agreement might be set out and the nature of possible provisions. As a negotiated agreement the format was dictated by the negotiations. It is not offered as a precedent of what should be contained in a joint venture agreement (“JVA”), the “proper” sequence of Articles, or a complete listing of the contents of joint venture agreements generally. The set-up used for an agreement should be decided by the parties and be one they consider flows in a logical and workable sequence. This example sets out the “deal” first, followed by the provisions relating to how work is to be carried out and then by administrative provisions necessary to make the agreement work. If you are more comfortable with, say, having the Committee provisions at the beginning, by all means have it drafted that way -- you are going to have to live with the agreement and work under it.Notes:1. The Table of Contents provisions appear in bold print. The italicized sections are annotations, which have been provided in some cases where the heading may not clearly describe the contents. They are not intended to be comprehensive, but refer to some specific matters that are considered to be of interest or to need some clarification.2. The subject matter of many of the articles and paragraphs is discussed or commented upon in the text of the book. Some of section cross-references have been provided. Such references are only to sections where the topic is a principal subject and no attempt has been made to provide a comprehensive indexing.3. Although this particular agreement is a three-party agreement, *B* and *C*, the Owners, are required to act as a unit (see para. 1.09. – § 8.44.), making the agreement effectively a two-party agreement. The parties insisted upon having a decision-making Committee and structuring the agreement accordingly. As is explained in § 8.11., such an arrangement is not recommended and can result in problems.5. See also §§ 8.24., 8.41. and 14.13. for discussions on tables of contents, summaries, and headings."

Jan 1, 2003

By Moto Goto

Today, Pierce-Smith converters, coupled together with various types of smelting units, are used in most of the world's smelters, However, due to the "batch" processing nature, and problems associated with fugitive emissions during the transfer of melt and blowing stages, this arrangement will unlikely be adopted in future smelters. Modern day alternative processes include the Mitsubishi Process, Outokumpu Flash Smelting and Flash Converting Process, the Noranda Process, and the Ausmelt Process, but only the Mitsubishi Process is a "truly continuous" smelting and converting operation, producing a constant flow of blister without tapping, and is economically proven by long term commercial operations. This paper reviews recent advances in modern continuous converting technologies, with a special section devoted to operation of the "first standalone Mitsubishi C-furnace" coupled together with a Noranda Reactor, at Port Kembla Copper Pty, Ltd. in Australia.

Jan 1, 2003

By Brent Blanchard

As most veterans of our industry are aware, explosive demolition by its very nature is often a challenging proposition. Even under the best of circumstances, proper planning and care must be taken during a variety of processes to ensure a safe, successful result. However, every now and then a project suddenly arises where safety, timing and cost factors combine to form a critical scenario requiring rapid execution in an environment far more challenging than the norm. On these occasions, the stresses, complications - and most notably the dangers - related to the industry increase exponentially, and conspire to test the mettle of even the most seasoned experts.

Jan 1, 2003

By R. D. Lawrence

"Suggestions have been made that the appraisal of mining assets using discounted cash flow techniques should be based solely on proven and probable reserves in reliance upon the widespread international recognition of uniform resource definitions. Following a review of general accepted valuation principles, a survey of the literature and, most importantly, a review of real transactions in the open market, it is clear that valuators should not be constrained by the growing acceptance of modern mineral resource codes. On the contrary, valuation practitioners should be encouraged to examine all classes of mineralization and, after making due allowance for risk, to utilize all mineral resources as a basis for determining fair market value.INTRODUCTIONGreat strides have been made recently in achieving an international consensus on mineral reserve and resource definitions and classifications. The Australasian JORC code, the CIM code in Canada, the SME proposal in the United States and even a proposed code from the United Nations have all brought the objective within reach.Unfortunately, this success has led to another problem for mineral valuators. Certain securities regulators, tax collectors and their ilk have begun to expound on the opinion that discounted cash flow projections carried out to calculate net present values that would form the basis for a valuation determination should be based solely on proven and probable reserves. The author disagrees with this position. This paper examines the subject from four points of view:"

Jan 1, 2003

By R Neivandt, Kane, M O&apos, D Browne

Newmont Australia is the operator of the Mt Leyshon mine near Charters Towers, Queensland. Mt Leyshon is an open cut gold mine, which processed on average 5.0 Mt of ore and produced up to 250 000 ounces of gold per year. Mining was completed in early-2001, followed by treatment of low-grade ore stockpiles for a further 12 months. Approximately 250 ha of waste rock dumps have been rehabilitated. Rehabilitation of two of the three tailings storage facilities (TSF) has been completed and the third is in progress. A field performance monitoring system that includes an automated meteorological station, large-scale lysimeters (measurement of net percolation), and in situ moisture content sensors (measurement of moisture storage changes in the cover material) were installed to monitoring performance of the cover systems placed on the waste storage facilities. This paper focuses on the installation and calibration of the in situ moisture monitoring system. The moisture monitoring system provides automated detailed in situ volumetric water content data above and within the large-scale lysimeters. A portable unit that provides spatial in situ moisture content measurements at additional locations on the cover system is also utilised. The paper will focus on installation and calibration of the in situ water content monitoring instrument in the waste rock, coarse cover material, and fine textured cover materials of the tailings facility and waste rock dump cover systems.

Jan 1, 2003