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By S. Mamonov, V. ?shikhin

"The purpose of work was the significant increase of copper recovery from slag at a concentrating plant. Analysis of study of slag phase composition showed the perspective of a slow slag cooling method due to its recrystallization and transition of primary copper minerals to secondary.Copper content in base slag varied between 0.71 and 0.96%. The study of a degree of copper minerals release of the slowly cooled slag in comparison with a yielding slag showed that in a flotation size grade –0.071 mm of yielding slag the weight ratio of released copper minerals grains is 58.95% against 86.73% in samples of slowly cooled slag. The process flotation sheet consists of three main, one control and two cleaner flotation operations with aftergrinding of middling products. A reagent mode was differed from a factory one by decreasing the slurry pH from 11–12 to 8–9. This paper shows research results of the slurry alkalinity impact on technological indexes of beneficiation (flotation).Industrial testing of a resulted batch of slowly cooled slag at “SUMZ” concentrating plant showed the efficiency of such processing: copper recovery to a copper concentrate increased by 15–19%.INTRODUCTIONIntensive development of mining and metallurgy industries within a 250-year period in the Ural region led to forming of approximately 315 man-made mineral formations at the territory of the Sverdlovsk region. The region contain over 32.5 billion tons of barren rocks and out of balance ores, over 1.5 billion tons of tailings, over 115 million tons of slimes, and over 100 million tons of metallurgical slag (Demin et al., 2000). Latters, at average, contain 407 thousand tons of copper, 2519 thousand tons of zinc, 7 tons of gold, and 150 tons of silver (Rudoy et al., 2011). Wastes generated in mining processing and metallurgical sector of economy contain not only thousands tons of copper and zinc, but cause significant damage to the environment where they are located. The reduction of negative impact of anthropogenic wastes on the environment as well as the storage volume reduction of valuable metals from dump slags is possible by improving the efficiency of the melting and further flotation of slags formed during this process."

Jan 1, 2016

By A. Hosseini

Full-scale rupture tests were conducted on 508 mm (20 in) diameter API X-60 5.7 mm wall thickness pipes containing either axial semi-elliptical cracks or simulated corrosion defects with equivalent depths ranging from 20 to 60 percent thickness. In the case of the cracks, the failure pressures were predicted with reasonable accuracy when considering a level 3 failure assessment diagram (FAD) procedure based on API 579, as compared to level 2 FAD, since the mechanical properties were known. In both cases, the accuracy improved for shallower cracks. Considering simulated corrosion defects, the RSTRENG approach provided more reliable results on predicting the collapse pressure. For a similar depth and profile, the cracked pipes failed at a lower pressure than those containing simulated corrosion defects of equivalent depth.

Jan 1, 2010

By David Morrison

Our present longwall problems in Cape Breton can be grouped under five main classifications. These are: (1) Roof control on the face and on the main roadways leading thereto. (2) Transportation of coal along face and levels. (3) Mechanical loading at the face. (4) Safe method of conducting and applying power at the working faces. (5) Dust nuisance. The usual layout for longwall operation in Cape Breton is to have three, and sometimes four, faces in line with each other, the length of face being from 400 feet to 500 feet (see Figure 1), and producing between 425 and 500 tons per face. Each wall is serviced by a well constructed roadway for transportation of coal, men, and materials, and is operated as an independent unit. Each wall works under a regular cycle of operations: first, cutting and boring; second, drawing hardwood chocks, building midwalls, and shifting panlines; and third, loading. The present method of roof control and operation of longwall faces has developed through trial and error since the commencement of longwall miring in Cape Breton. The basic method of roof control in all longwalls in Cape Breton is: rigid support of the roof in the immediate vicinity of the working faces by hardwood blocks, as shown in Figure 2, accompanied by a cushion support furnished by continuous midwalls, 12 feet wide, constructed of stone obtained from the waste and spaced at 50-foot centres. These midwalls are kept forward to within 4 feet to 10 feet of the working face and allow a gradual subsidence of overhead strata, thus preventing any sudden break at the working face.

Jan 1, 1947

By L. López

Argentina reported about 40,000 tonnes of uranium (tU) as reasonably assured resources and inferred resources for the production cost category <130 US$/kgU in the OECD-NEA/IAEA classification scheme. These resources belong to the following projects: Sierra Pintada, Cerro Solo, Don Otto, Laguna Colorada, Laguna Salada, Meseta Central and Amarillo Grande. With three heavy water reactors in operation and an approximate installed capacity of 1.7 GWe, the current natural uranium requirements are about 220–250 tU per year. Based on various nuclear growth scenarios, it is estimated that by 2030 there will be a generation capacity of some 3,092 GWe for the reference case, with raw material needs of some 486 tU per year. Currently, there are no perspectives for local uranium production in the short term, and it is thought that uranium projects with identified resources must complete resource delineation and advance in technical pre-feasibility studies for the recovery of uranium. It is expected that Argentina continue meeting the uranium demand with imports in the next following years. In the Latin America region, both Brazil and Paraguay could be considered as potential uranium suppliers. In conclusion, despite the apparent growth prospects for the use of nuclear energy to generate electricity in Argentina, there are no immediate prospects for the provision of uranium oxide concentrates from domestic deposits for fuel fabrication. This has implications for supply and energy security.

Jan 1, 2020

By Margarete Kalin

Mine Waste Management ?Reduction of Sulphideoxidation or inhibiting weathering of rocks Geologist - broken or ground rocks Hydrologist - sources of contaminants Mining engineer - waste sites Consulting companies - income units People - Ugly, bad, dead Ecological Engineer Landscapes which contain building blocks of an emerging ecosyste

May 1, 2013

By A. J. Russell

"This paper investigates why it is critical for a mine to accurately determine thermal rock properties and virgin rock temperatures. Theoretical simulations of deep mining production zones have demonstrated that thermal conductivity (k), virgin rock temperatures and specific heat (cp) significantly impact rock heat predictions which can be the dominant component of a mine’s heat load. Natural variability in these factors showed that realistic errors can have a significant effect on mine heat loads. This can ultimately affect miner safety and introduces risk to the viability and sustainability of a project. INTRODUCTION Accurate heat load determinations are critical to ensure that underground working conditions are maintained within legislated and mine specific parameters to safeguard the safety and productivity of employees. Underpredicting mine heat loads will result in hot underground conditions, which risk the health and safety of employees, reduce the productivity of employees or stop production if legislated temperatures in working areas are exceeded. Overestimating mine heat loads will result in increased capital and operating costs reducing the viability of the project. Over- or under- predicting the heat load for a project will increase the project risk. Heat sources in a mine can broadly be broken into two categories. These two categories are defined by Hemp and Rawlins (2014) as natural and artificial heat sources. Those sources which depend on the size, location and depth of the mining areas are defined as natural heat sources, whereas those heat sources which are a result of the actual mining activities are defined as artificial heat sources. Autocompression, or the conversion of potential energy, to enthalpy is an important consideration when determining the air temperature in the mine and its interaction with natural and artificial heat sources. It is documented by Jones (1985) and Hemp and Rawlins (2014), that the heat flow from rock in deep mines can dominate other heat sources; information from BBE’s archives show that this is between 40% and 60% of the total heat load. They also point out the importance of accurately measuring both the thermal rock properties and virgin rock temperatures (VRTs) for determining and planning the ventilation and refrigeration requirements for a mine. Both of these texts cite multiple methods for calculating the heat-flux and ultimately the heat load for the different working areas in a mine. All of these methods demonstrate that the heat flux and heat load will increase proportionally with increased thermal conductivity (k), specific heat (cp) of the rock or mineral, and VRT depending the area of the mine or mining method."

Jan 1, 2019

By Jae-Chun Lee, Sadia Ilyas

We investigate the technical feasibility of bioleaching of metals from low grade sulphidic ore. Experiments were conducted with an adapted consortium of Sulfobacillus thermosulfidooxidans and Thermoplasm acidophilum in batch bioreactors (1.5 L), small columns (10 kg ore load, 8 % S0 sludge) and large columns (80 kg ore load, 12 % S0 sludge). Approximately 83 % Ni, 85 % Cu, 55 % Fe and 81 % Zn was leached out in batch mode while 93 % Ni, 89 % Zn, 81 % Cu and 65 % Fe was leached out in column reactors. Bioleaching potential improved by acid pre-leaching, adaptation of microbial consortium and periodic bleeding of effluents.

Jan 1, 2014

By T. R. Madhavan

The development of contact angles on highly polished ?uraninite surfaces, using sodium oleate and dodecyl ammonium acetate as collectors, has been studied at different collector and hydrogen ion concentrations. It was found that sodium oleate in acidic media (up to a neutral: PH) and dodecyl ammonium acetate in neutral and alkaline media give good contact angles. It appears that the combined forms of these collectors, viz., oleic acid and free amine, are more important in effecting contact. W ITH the emergence of uranium as a strategic metal in the last fifteen years, considerable effort has been directed toward the commercial recovery of uranium from its ores. This has resulted in the development of a uranium technology. It is only in recent years, However, that fundamental data regarding the floatability and surface properties of uraninite and ?pitchblende have been elucidated by different methods. Contact-angle measurement is one of the important tools for tl1e evaluation of the conditions of floatability

Jan 1, 1964

By Alisa M. Caswell

Outline: 1. Syncrude: Who are We? 2. Energy Use at Syncrude 3. Historical Energy Focus at Syncrude 4. Case Studies for Process Variable Monitoring 5. Extraction Flood Water Temperature Management 6. Fired Heater Tuning 7. Critical Factors for Success Syncrude: Who are We? ?Syncrude is a Joint Venture Operating Company with one product: Synthetic Crude ?Production Capacity: 350 kbbls/day ?Primary Energy Sources: ??Fuel Gas + Natural Gas ?? Coke ?? Electricity ?? Diesel

May 1, 2008

By Fred E. Gray

The mill of Bralorne Mines, Limited, is located on the government highway in the Bridge River mining district of British Columbia, approximately fifty miles northeast of Shalalth, the shipping point on the P.G.E. railway. Prior to 1931, the property now owned by Bralorne Mines, Limited, was operated by Lorne Gold Mines, Limited. During the early operation of the mine, the ore had been treated at various times in one of three small amalgamation mills on the property. With the succession to ownership by the Bralorne Mines, Limited, work was started on construction of a new mill of approximately 100 tons capacity per day. The new mill was put into operation in the month of February, 1932, and since that date has been in continuous operation, milling an average of slightly over 3,000 tons of ore a month. The ore treated in the Bralorne mill is a gold-bearing quartz containing a very small amount of silver. About 75 to 80 per cent of the gold is in the form of free gold, the principal remaining portion being intimately associated with pyrite and arsenopyrite. The gangue rock is quartz, together with varying but relatively small amounts of altered diorite or albitite. In some of the ore, usually the higher grade portions, there is also considerable talc, which forms much slime in grinding. The mill is situated near the portal of the main haulage tunnel and the ore is received directly from the mine ore-trains, which dump on to the grizzly over the coarse-ore bin of the crushing plant. Figure 1 shows the flow-sheet of the mill as it is now being operated. Various changes have been made in the flow-sheet and in the reagents since the commencement of operations, and doubtless minor changes will continue to be made in order to increase the efficiency of the mill. Among the more important changes were those from two-stage to single-stage grinding, and from amalgamation plates to blankets. The change in the crushing was made because too much crushing was done when both primary and secondary mills were employed.

Jan 1, 1933

By Agbo Chima

Low-lying sections of open-pit mines accumulate water, especially during the rainy seasons, preventing access to resource-bearing areas. To sustain mining operations, the water must be lifted out of the flooded pits at a high flow rate using pumps. These pumps need to be mobile so that they can be removed during drill-and-blast operations. Most mobile pumps rely on diesel engines with high maintenance requirements. A special pump design was developed to address the unique needs of open-pit mining while making the dewatering process more sustainable. Using the target flow rate and head data, an efficient pump was designed, encased, and deployed in the open pit. A variable speed drive (VSD) was installed in a protective skid so that the pump could be tuned to match the preferred flow rate at any point during its operation. This system was tied to the national electrical grid instead of being powered by diesel pumps, which reduced the carbon intensity per kilowatt-hour. The high availability, low maintenance requirement, and greater reliability reduced the use of spare parts, the fuel consumption, and the logistics associated with operating the pump. This further reduced the carbon footprint of the dewatering process. This paper provides some of the two-year performance metrics for a deployment in West Africa. With a focus on availability, maintenance costs, average cost per volume lifted, and carbon footprint, this encased pump system is compared to the diesel-driven pumps that it aims to replace.

Jan 1, 2023

By A. Brown

"The mining industry is no exception to the general rule that continuing research is essential to good management; in fact, because of the imperfect state of knowledge in regard to many important factors associated with a mineral extraction, mining research assumes a position of unusual importance. On the basis of a recent visit to mining research centres in a number of European countries, the author describes their organization and their role in the mining industries of these countries. Some observations are made on Canadian mining research efforts, with a view to indicating a more systematic basis of procedure."

Jan 1, 1960

By V. H. Valenzuela

Materials in process or in stocks are quite relevant items in almost every plant, particularly in mining operations, where efficiency in rate of recovering material of interest becomes a key issue when production costs are evaluated. A manager requires information to do an effective use of the resources, especially when raw materials are involved. Losses associated to leaking, efficiency in the transformation process, performance of equipment, and operating conditions are a short list of items which must be properly identified and evaluated. Operations supervisors require information in order to keep key process variables under control. Because of these information needs, it is absolutely necessary to carry on a series of activities related with installation and maintenance of measuring equipment, sampling equipment, sample preparation, chemical analysis, statistical analysis, data handling and reports generation. These pieces of data must be managed on a wise manner in order to get the most of it, keeping always on mind data reliability. Normally, information related with metallurgical balance and even more, the metallurgical balance concept, is handled under an accounting criteria which does not allow dealing with the real world. This situation happens because the criteria utilized do not consider aspects such as bias and uncertainty associated with every measurement that affect the quality of the information and therefore conclusions drawn from it. The purpose of this paper is to give a few rules, necessary to follow, in order to develop an adequate Metallurgical Balance System for an operational point of view. The Gaussian approach for error propagation is used as a basis, allowing one to know the actual uncertainty of the balance and the way how it can be improved. A few real applications of this concept are listed, detailing experiences obtained from practice.

Jan 1, 2007

By W. Dolsak

Introduction Alternative bolting injection resin Hollow bars, rebars, and cable bolts Results from an in-house product development project Sept. 2011 to Feb. 2013 Goals Introduction of a newly developed bolting silicate injection resin as alternative to cement grout based injection systems Definition of easy-to-use pumping devices and installation accessories Accomplishment of installation trials and performance evaluation

May 1, 2013

By M. Leroux, S. R. Rao, J. A. Finch

"Poor Pb/Zn selectivity during Pb flotation in laboratory tests on a Mississippi Valley-type Pb/Zn ore was traced to a pH effect. In the pH range 9.5-11 sphalerite floated readily without copper activation. Compared to sphalerite flotation with copper activation this procedure gave equivalent selectivity but reduced flotation rate.Possible mechanisms of this sphalerite flotation without copper activation are discussed. Activation by Fe(OH) 2 is suggested, the Fe++ions being derived from superficial oxidation of pyrite in the ore.INTRODUCTIONGalena and sphalerite commonly occur together. The usual practice is to float galena first followed by the flotation of sphalerite after activation with copper (II) sulphate. If ores contain pyrite it is depressed by maintaining an alkaline pH (9- 10) and using NaCN as depressant.In flotation tests with a Pb/Zn ore from Polaris selective flotation of galena could not be achieved consistently as a considerable amount of sphalerite, even though unactivated, floated. A systematic study was carried out to determine the cause of this problem. This led to the unexpected finding that sphalerite floated in the alkaline pH range 9.5-11.0 without preactivation with Cuso 4 . This paper describes the results of this study and discusses a possible mechanism of the flotation of sphalerite."

Jan 1, 1987

By A. T. GRIFFIS, R. J. GRIFFIS

A large magnesite-talc body is locared in Delora Township, 11 km sourh-southeasr of Timmins, Onrario. The deposit occurs in part of an Archean greensrone belt dominated by volcanic and sedimenrary rocks and large bodies of ultramafic intrusions. The magnesite-talc zane is abour 1800 m long, has a maximum width of 300 m and has been drilled ro 120 m below surface. Chemical analyses of rhe main carbonate zane average 20 ro 28% soluble MgO (magnesia), 5 ro 6% rota/ iron oxide and less rhan 0.1 % CaO (lime). Mineralogically, the zane consists of approximately 54% magnesite, 28% rate, /5% quartz and 3% hematire. Perrographic srudies suggest that rhe various assemblages of magnesite, rate, quartz and serpentine were derived from a parenr serpenrinire (after dunire). An early carbonitization stage, which produced a high-magnesite, low-talc assemblage, preceded a farer decarbonitizarion stage, which formed rhe main magnesite-talc assemblage. Despite a favourably low calcium oxide content of rhe magnesite-talc rock, considerable iron in the magnesire /at rice has limited the quality of the beneficiared product: rhe besr flotation concentrate to dare yields 92 to 94% dead-burned MgO. Experimen- I L t r i i c:~:.•-4- -------- ? -_;> ,•----1---- ta/ work continues on finding a process whereby high-purity magnesia can be produced on a commercial scale.

Jan 1, 1984

By U. Troncoso

Mantoverde is a heap leach-SX-EW operation that was commissioned in December 1995 at a production rate of 42,130 ton of copper per year and 5.4 million ton of ore per year. Copper production has been steadily increased to reach 62,000 ton in 2005. The forecast copper production for 2006 is 60,300 ton for an ore treatment rate of 9.5 million ton. A first dump leach operation was started in 1999 at a production rate of 1,922 ton of copper. A second dump leach operation was started in early 2002 at a production rate of 2,805 ton of copper. Dump leach production will be increased over time to as much as 24,000 ton of copper. Several improvements in the heap leach process have been implemented to cope with the higher ore throughput and copper production. However, the solvent extraction plant has remained unchanged which has resulted in a lower availability of raffinate solution and, as a consequence, in longer leach cycles. Different studies have been undertaken in order to optimize the solution management system at Mantoverde, including column test work aimed to reduce the leach cycle and solvent extraction plant modifications aimed to increase the raffinate solution availability. The test work program and the economical evaluations carried out, as well as the conclusions and recommendations obtained, are discussed in this paper.

Jan 1, 2007

By Grant Arnold

Le Camp Minier de Matagami est situé dans la ceinture volcano-sédimentaire Harricana- Turgeon appartenant à la Province du Supérieur, sous-province de l?Abitibi, au Québec. Les gisements de métaux de base polymétalliques sont retrouvés exclusivement dans les deux domaines lithotectoniques comprenant l?association basalte-rhyolite (Matagami-Brouillan et Joutel-Raymond). Tous ces dépôts, à l?exception de ceux de Selbaie, sont de type exhalatif et représentent des dépôts volcanogènes à Zn-Cu, typiques de l?Archéen. Le complexe volcanique de Matagami est constitué principalement de deux phases de volcanisme tholéïtique. Les dacites et les rhyolites du Groupe de Watson, représentent la phase la plus précoce et celles-cis sont recouvertes par la seconde phase qui est constituée majoritairement de roches intermédiares à mafiques intercalées d?horizons felsiques, formant le Groupe de Wabassee. Un sédiment chimique sulfuré, la Tuffite Clef, marque le contact et l?hiatus entre ces deux groupes. Cette tuffite est reconnue à la grandeur du flanc sud du camp minier et représente l?horizon favorable à explorer puisque sa déposition a correwspond à une période d?intense activité hydrothermale. Le complexe volcanique de Matagami est limité au nord et au sud par des bandes sédimentaires orientées est-ouest, connues respectivement sous les noms de Groupe de Matagami et Groupe de Taïbi. Le Complexe intrusif de la Rivière Bell, qui occupe la base du Groupe de Watson, est un complexe lité consistant en une séquence stratifiée gabbroïque avec localement des niveaux stratiformes à concentrations d?oxydes magmatiques, la bordure de ce complexe est marquée par la présence d?un horizon granophyrique. Cette intrusion synvolcanique prétectonique, représente probablement la source de chaleur étant à l?origine de l?activité hydrothermale observée dans les roches volcaniques sus-jacentes. Suite à un levé aéroporté, le camp minier de Matagami a vu le jour en 1956 lors de la découverte du dépôt de Mattagami Lake, un gisement volcanogène de 25.6 millions de tonnes. Depuis ce temps, un total de neuf gisements ont été exploités et un dixième, Bell Allard, est présentement en production. En date du 31 décembre 1999, la production historique du camp s?élevait à plus de 41 millions de tonnes. Cette présentation mettra l?accent sur la géologie des récentes découvertes dans le prolifique camp minier de Matagami. Les ressources publiées pour le dépôt Persévérance sont de 947,000 tonnes titrant 19.12% Zn, 1.37% Cu, 32 g/t Ag et 0.40 g/t Au. Deux autres découvertes, Équinoxe et Persévérance Ouest contibueront à la ressource globale. Les trois dépôts sont situés au niveau de la Tuffite Clef même si les roches sus-jacentes ne sont pas celles typiquement observées dans les autres dépôts du flanc sud. Ces découvertes sont le résultat d?un programme d?exploration ciblé et soutenu, démontrant ainsi la possibilité de découvrir de nouvelles ressources même dans les camps miniers comme Matagami qui ont été explorés intensivement depuis plus d?un demi-siècle.

May 1, 2001

By S. Kodama, G. Sasaki, K. Matsugi, K. Sugio, Y. B. Choi

"Pure aluminum (Al) matrix composites with changing the volume fraction of TiB2 particle content from 10 to 30% was fabricated by spark plasma sintering (SPS) process. Then the microstructure, density, dispersibility and thermal conductivity of the composites was estimated. As increasing TiB2 content, the dispersibility of particles and the density of the composites degraded slightly. And, the effect of the dispersibility of TiB2 particles on the thermal conductivity was quite little. The thermal conductivity of the composites was less than the theoretical value calculated by Maxwell-Eucken equation considering the effect of the density. It is due the influence of the interface heat transfer rate, because these composites have many small sized particles and have high interface density.INTRODUCTION Recently, metal matrix composites (MMCs) have been used widely in electric / electronic components, architectural materials, transportation equipment, aerospace and a precision instruments, because it’s superior properties have been greatly watched. Demand of MMC for industrial use has been increasing gradually. Furthermore, multifunction properties are required for the composites strongly. By integrating the dissimilar materials, the composites have various properties that we cannot get from monolithic materials. On the other hand, the response to the thermal management is required for materials, recently, and the need for the structural material controlling the thermal conductivity has been increasing. Especially, superior thermal conductivity and good mechanical properties from room temperature to high temperature are required for heat sink and heat exchanger at the same time. In late years, a study on the composites combining carbon materials and aluminum and copper has been developing, and actually the composites with high thermal conductivity which is not provided in the conventional materials is developed. On the other hand, non-oxide ceramics particles such as SiC and AlN, TiB2 have good thermal conductivity. Particularly, as TiB2 has good electrical conductivity, TiB2 containing MMCs is expected as innovative materials used as electric/ electronic components. Furthermore, as TiB2 has low density, high melting point, low thermal expansion and good deformation resistance, the development of high performance composites with multi-functional properties is expected. As thermal conductivity of pure Al and TiB2 are 225 and 66.4 W/mK, respectively, it is expected that the degradation of thermal conductivity by adding dispersant in Al matrix is suppressed. The authors have carried out a thermal conductivity, electrical conductivity, mechanical properties of 20 vol.% TiB2 dispersed Al composites (Sugio, 2016, Sasaki, 2016). In this study, the influence of quantity of addition of TiB2 on microstructure, thermal conductivity was studied minutely."

Jan 1, 2018

By Robert T. McKnight

"Traditional techniques for valuing resource projects companies have been primarily based on discounted cashflow methods (DCF) or by comparison to similar projects with an apparent market capitalization. Many resource projects are really forms of options to invest rather than a future cashflow stream. Employing the DCF method to value a resource project which is really an option to invest, can dramatically underestimate the real value of the project. The analytical tools required to evaluate options, while more complicated than the usual spreadsheets used for DCF, are becoming more easily available and usable by managers. This paper will discuss the background of options valuation and some of the tools which will make it easier for managers to estimate the value of projects and companies which have significant real option values.ResumeBob McKnight is a graduate of the University of British Columbia in Geological Engineering, supplemented by an MBA from Simon Fraser University. Following several years in the oil patch with Cities Service and Brascan, Bob returned to Vancouver in 1979 to work for Wright Engineers. He subsequently went on to work for Cassiar Mining, Getty Resources and Endeavour Financial before joining Pincock Allen & Holt Ltd. in 1998. His experience ranges from exploration to feasibility studies, financial evaluations of mining and oil & gas projects, due diligence, project finance, valuations and mergers and acquisitions. He has extensive international mining experience pertaining to such countries as Chile, Mexico, Uruguay, Thailand, Indonesia, Angola, Papua New Guinea, Kazakhstan.What are Options?Options have been around for centuries. They were familiar to Roman and Phoenician traders who were shipping cargoes from Mediterranean seaports. In the financial world, options are types of contracts that generally include the right, but not the obligation, to buy or sell a share, currency or commodity. The underlying commodity price or share price changes are assumed to be lognormally distributed. In this context, options are of two general types, ""call"" options and ""put"" options. Call options have the characteristic of having the right to buy a tradable commodity or currency at a predetermined price for a specified period of time. For the owner of call options, they become more valuable as the price of the underlying commodity increases. For the seller of call options, these options become an increasing liability as commodity prices rise, since there is the obligation to sell the commodity at a predetermined (perhaps lower-than-market) price. This characteristic of call options recently became high profile with the sharp rise in gold prices last year. The value of gold call options sold by certain producers increased their associated liabilities to the point where margin calls were made."

Jan 1, 2003