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By Yan Jie

The oxygen-enriched bottom-blowing continuous converting process for copper matte was recently developed by the China-ENFI Engineering Corporation. The first commercial plant based on this technology was successfully commissioned at the Yuguang smelter in China in March 2014. The present paper describes this new continuous converting process and compares technical characteristics with other continuous converting processes including: Kennecott-Outokumpu flash converting, the Mitsubishi Process, the Noranda Converter and TSL continuous converting. The bottom-blowing oxygenated continuous converter with competitive capex and opex costs is seen as an attractive alternative to the Peirce-Smith converter.

Jan 1, 2014

By Timothy W. Ellis

Gold-based materials have been a mainstay of the electronics and semiconductor industry since the physics was just a laboratory curiosity. Gold is the workhorse material in wire bond, flip chip and off wafer interconnections due to its corrosion resistance, ability to form metallurgical bonds by soldering or cold welding, and ease of fabrication. As the electronics and semiconductor industries grew, so did the use, of Gold in spite of the feature size reduction so elegantly demonstrated in Moore?s law. However, several revolutions in the Silicon miracle are threatening Gold?s place as the material of choice. Although cost is always an issue, the limitations are associated with the chemistry of Gold based alloys. Will Gold remain? Emerging requirements of bioelectronics, photonics and power requirements in conventional device represent new opportunities for Gold to shine. Additionally, as the world market demand for electronic, semiconducting, bio-electronic and photonic technology increases, given the right technology, Gold still can provide value proposition.

Oct 1, 2003

By R. B. Kaunda

One fundamental requirement for surface and underground rock engineering is the ability to characterise the rock mass. An accurate characterisation of the rock mass allows rock engineers to optimize designs safely and economically. A number of classification systems have been developed in the past 50 years to help characterise rock masses such as RMR, Q system, Rmi, and several others. The challenge in developing rock characterisation schemes is often practicality, i.e. creating systems with relatively simple inputs for the everyday practitioner. A second challenge is the degree of subjectivity often inherent in commonly used classification systems. These challenges are especially exacerbated in weak rock or densely jointed rock masses. This paper introduces a new approach to characterise densely jointed rock mass using artificial neural networks and principal component analysis, based on principles commonly used in the geotechnical engineering of rock fills and waste rock dumps. Thirteen input parameters are dimensionally compressed using principal component analysis. Using a global database with more than 100 case histories, an artificial neural network is developed to conduct the rock mass characterisation. The advantage of this approach is less subjectivity as commonly used engineering (quantitative) terms are put to use. A further advantage is that given that the method is site-data dependent, it allows for ‘fine tuning’ of the model for a specific site.

Jan 1, 2015

By G. Danha, S. Wabula, D. Glasser, D. Hildebrandt, N. Hlabangana

"Impact tests on single particles or a bed of particles are used to determine the fracture characteristics of particles. Many different techniques have been adopted in comminution in order to find ways of optimizing energy consumption in the size reduction process. In this paper, we apply one such method called the Attainable Region (AR) analysis technique to optimize the impact energy on a bed of silica particles. The attainable region is a fundamental approach that is equipment-independent and can be used to analyze breakage processes. The AR is defined as a set of all possible outcomes, for the system under consideration that can be achieved using fundamental processes operating within the system.INTRODUCTIONThe energy crisis in Southern African has reached such critical levels, that most cities in countries like Zambia, Zimbabwe, Lesotho, Swaziland and even South Africa are experiencing load shedding challenges lasting sometimes up to 18 hrs a day. Southern Africa is well known for its riches in mineral resources, and the economies of most states in this region are driven by the mining & mineral processing sector. With the emergence of small scale miners due to government empowerment policies, national energy providers have had to resort to power cuts mainly to domestic users in a bid to cope up with the huge industrial electricity demands.It has been estimated that about 4% of the total energy used in the world is consumed by the mineral processing sector (Fuerstenau & Lutch, 1999). Tomanec and Milovanovic (1994) estimated that milling alone accounts for more than 50% of the total power used in mineral processing, but this can rise to as high as 70% for hard or finely dispersed and inter-grown ores. Today, the greatest challenge in mineral processing is how to optimize energy input to the size reduction process (Dey & Das, 2013; Nomura & Tanaka, 2011), where it has been observed that only a small percentage (1.5%) of the total energy input really does the breaking (Khumalo et al., 2008) while the rest is consumed by the equipment concerned and lost to contacts that do not result in breakage. The immediate benefits of focusing research on the optimization of energy in size reduction operations in the mineral processing sector lies in potential savings on industrial electricity usage that may then be directed towards domestic users."

Jan 1, 2016

By V. Cvetkovic, L. Zou, L. Jing

"Sorption process plays a significant role for solute retardation in rock fractures. In this paper, for the aim to investigate the effect of sorption on solute transport in a single rough fracture, a 2D model of representative single rock fracture was built and its roughness was statistically characterized based on the measured data of rock surface topography by laser scanning. A Finite Volume Method (FVM) code was developed to solve the Navier-Stokes (NS) equations and transport equation for numerical modelling the process of fluid flow and solute transport in the rock fracture model. Two groups of simulations were conducted: with and without the consideration of the sorption process with different average flow velocities. The results show that the surface roughness increased the complexities of flow fields, and the non-linear sorption process plays a significant role in the retardation of solute transport through rock fractures. The sorption process caused an obvious lagging time in both the solute concentration fields (plumes) and corresponding breakthrough curves. This lagging time increases with the distance from the inlet boundary, and relatively decreases with the increase of mean velocities. INTRODUCTIONFluid flow and solute transport in fractured rocks is an important research topic for performance and risk assessments for rock engineering projects concerning geo-environment safety, such as radioactive waste disposal, mining, geothermal extraction, reservoir engineering and other contaminant transport processes in geosphere (Berkowitz 2002).The solute transport in the rock fractures mainly involve the advection, surface sorption, matrix diffusion, dispersion, radioactive decay and chemical reactions, governed by general transport equations (e.g. Bodin et al., 2003). Among these transport phenomena, the sorption on the fracture walls can alter solute migration between the fractures, and play an important role in natural retention of solute transport (Weber et al., 1991; Wels et al., 1998; Kumar 2007; Dai et al., 2012). The aim of this study is to investigate the effect of sorption on the solute transport in a single rock fracture with rough surfaces. More complex transport processes, such as matrix diffusion, dispersions, radioactive decay and chemical reactions, are not included in this study."

Jan 1, 2015

By Z. Abbasloo, A. Masoomi, L. Ebrahimi, A. Mortazavi, A. Keshavarz

"Investigation and 3D analysis of Heap no. 2 of Meydook copper complex was the subject of this study. In this project all geological and geotechnical investigations conducted in the mine were evaluated aiming at determination of Heap no. 2 design parameters. The main objective of the project was to evaluate the potential for construction of Heap. No. 2 on a waste dump built in a valley in the north side of the pit.Considering the space limitation for dump location this was a viable alternative to reduce the costs associated with heap no. 2 construction. Moreover, it allowed for a significant reduction in overall mining costs. Considering the project condition, a 3D analysis of heap major structures including; valley rock foundation, waste dump, and low grade ore was carried out. Five sets of analyses were conducted and the displacement and stress fields were calculated within the heap no. 2 components. In all analyses conducted the subsident profile was determined for the valley base rock and heap foundation (waste dump). Moreover, the shear interaction between heap and waste dump was evaluated at the heap interface. The analyses results showed that the maximum settlement at the heap base is about 4-5 cm and the waste dump provides a safe and reliable base for heap construction. Moreover, the analysis results showed that the selected %5 grade for the heap interface is good and does not pose any risk in terms of heap Interface shear displacements. A sensitivity analysis of heap mechanical parameters was also conducted. The obtained results show that if the friction angle of heap material is reduced below 25 degree due to acid spraying process, the heap walls become unstable and the heap geometry must be redesigned."

Jan 1, 2015

By R. A. Triglavcanin

Delivering dilution water and mixing this water with incoming feed slurry, addition of flocculant, maximising flocculant-slurry interaction to build aggregate size, unabsorbed flocculant percentage, volume average of solids volume fraction, momentum dissipation ratio, dilution recycle ratio, volume average shear, maximum shear rate at exit, aggregate size on exit, uniform discharge profile and more ? all of these need to occur in the right order and in the right proportions within the thickener feedwell, the secret to thickener performance.

May 1, 2009

By R. D. Lindsay

Originally the focus of Deak Resources Corporation Business Plan was to establish a method for treating small gold and possibly base metal mineral deposits located in the Kirkland Lake - Noranda area of Northeastern Ontario, Northwestern Quebec at a central treatment facility. Since the establishment of this original business plan in 1988 other processing options have availed themselves for handling the base metal ores off site at a central facility which may preclude their processing at Deak.The site selected for the Deak processing plant was Kerr Addison's Virginiatown operation. At the time this property was acquired from the Receiver following Golden Shield Resources' Bankruptcy in 1989 the mill had been processing in the order of 1, 100 SDT per calendar day through one processing module; a module originally designed to process 1,500 SDT/day of a free milling gold ore. This tonnage level however had not been achieved since 1966 when an average throughput of 1481 SDT per calendar day was recorded.In order to realize Deak's overall Business Plan it would be necessary to expand the mills processing capabilities to provide:(1) A 2200 SOT per day circuit capable of processing a free milling, medium work index gold ore;(2) a 1 ,000 SDT per day flotation and/or cyanidation circuit capable of processing refractory gold bearing materials containing refractory minerals (i.e. copper) that should be removed prior to cyanidation; and possibly(3) a 1200 to 1500 SDT/day base metal circuit capable of processing the broad range of Deaks' Base Metal Property ores. If this circuit were introduced it would be completed in two tonnage phases.Further, it was recognized when operations resumed under Deak in 1990 that the existing tailings dam was suitable for, and had sufficient capacity for additional gold tailings with necessary physical modifications and changes in disposal techniques (including the construction of containment storage cells) that would allow storage for an additional 3.4 million tons of gold ore tailings approximately 1.0 million of which has been deposited since 1990. The focus of Deak's long term tailings disposal strategy is to acquire the Barber Lake Basin which is currently adjoined to our main tailings system which will provide an additional 10 million tons of storage capacity.

Jan 1, 1993

By Robert B. Parsons

"The mining industry is adjusting its sights to take a shot at the rising level of non-profit taxes which threaten to handicap the industry 's competitive advantage. In the case of this particular expedition, the industry evidentally has a strong ally - the country's mines ministers. It appears that an initiative is under way to assess the impact of non-profit taxes on mining in Canada as compared to other mining nations.IntroductionSeventy-five years ago, Canadians were unceremoniously introduced to something called income tax. Since then, income tax has been identified as the source of countless evils ranging from the common cold (attributed to stress) to the demise of the economy. Some years later, the provinces jumped on the bandwagon with their own income taxes, and later on with mining taxes. These profit-based taxes had some appeal to elected officials and to a segment of the populace. The onus of the taxes varied directly with the ability to pay (in theory, at least). Previously, the principal sources of government revenues had been property taxes and customs duties, which were viewed as possibly being somewhat regressive in nature.The mining industry has always had concerns about different aspects of income and mining taxes - the tax rate is too high or the depreciation rate is too low, and so on. Recently, though, the industry has turned its sights on the expanding array of taxes which are not based on profit, including payroll taxes, capital taxes, water taxes, sales taxes, fuel taxes, property taxes, environmental levies and user fees. The industry is seriously concerned that the rising level of non-pro fit-based taxes is not only hampering the industry 's ability to reinvest in Canada, but is also placing Canada at a disadvantage in terms of trying to attract new investment capital."

Jan 1, 1992

By P. Condori, G. Rech, J. Winnett

"Palabora Mining Copper has a unique ore body composition which unlike other copper ore bodies has three main components in significant proportions; these are copper bearing ore, magnetite and dolerite. The high content of dolerite, a hard barren material, creates a high proportion of pebbles which normally are recycled back to the mill. This action increases the mill bearing pressure and power progressively until corrective actions are taken.A logical action to solve the pebbles generation would be to incorporate a pebble crusher. This in fact was done however two fundamental issues were encountered; the high content of magnetite and existence of a cyclone classification section. Due to the high content of magnetite, metal detectors have not been able to work efficiently to separate tramp metal which causes damage to the pebble crushers. The existence of cyclones in the circuit had a detrimental effect on the final product when the pebbles crusher was online producing coarse sandy material.Due to the difficulties in treating pebbles via conventional procedures and the unique Palabora ore composition and characteristics, sorting technology was investigated at laboratory and pilot scale. It was found that a combination of optical and electromagnetic sorting could efficiently separate dolerite from the copper bearing and magnetite ores.This paper reports the findings of the laboratory and pilot scale work performed and discusses the additional benefits to the circuit."

Jan 1, 2012

"Sink-float analysis is often used to obtain yield-ash and density partition curves in the coal industry. These provide a valuable tool for evaluating the performance of a separation process. However, for dense minerals, obtaining complete grade-recovery and density partition curves is more difficult due to the lack of heavy liquids available with the required densities. This paper examines a potential solution to this problem which is to perform batch fractionation of mineral samples in a laboratory-scale REFLUX™ Classifier using high viscosity fluidising liquids. The REFLUX™ Classifier is a gravity separation unit consisting of a system of parallel inclined channels positioned above a vertical fluidised bed. Operated in semi-batch mode, a charge of particles is fluidised from below and particles up to a certain density are elutriated from the top of the system. The fluidisation rate is then increased incrementally to fractionate the sample at progressively increasing densities. Previous work by Hunter et al. (2014) and Iveson et al. (2015) has shown that this method provides excellent agreement with yield-ash and partition curves for coal, especially when glycerol solutions are used as the fluidising liquid. This approach has now been extended to obtain the grade-recovery and density partition curves of high density mineral samples. This method has the potential to provide the minerals industry with an effective tool to evaluate the performance of unit operations separating at cut points higher than the available heavy liquids.INTRODUCTIONMeasuring efficiency and effectiveness is of key importance in the continuous improvement of mineral processing plants. For density based separation, one way the performance of a process can be evaluated is the measurement of density-based partition curves. Currently, this is done in the coal industry using the sink-float method, where heavy liquids are used to fractionate particles into discrete density intervals. However, with high density minerals such as iron ore, liquids of sufficient density are rare, and in most cases also pose serious health and safety concerns to laboratory operators. Most commercial laboratories do not perform sink-float separations above a density of about 4400 kg/m3, the maximum density of Clerici solution without operating at excessive temperatures (Koroznikova, Klutke, McKnight & Hall, 2007; Rosenblum, 1974)."

Jan 1, 2016

By J. Walenzyk

This report investigates the limited use of super large backhoes in surface mines around the world. The demand for super large (> 700 t) hydraulic excavators is rising and most of the machines are sold as front shovel (FS) application. Despite advantages in faster cycle times super large backhoe (BH) machines are a minority (ca. 1% of the total machine population). This investigation is based upon the comparison between the volumes available to the BH and FS in one block and before the machine needs to move. The working conditions are created with standard parameters as given by Original Equipment Manufacturers of hydraulic excavators regarding bench height, angle, and material density. The travel amount of both machine types is derived from these volumes and compared. Furthermore, the travel amount of super large BHs is compared to the travel amount of smaller mining BHs and evaluated based on attachment length and bucket size. The calculations conclude that the volume of material recoverable in a single spot is about 75% higher for FSs. This leads to an increased travel for BHs. The combination of both the increased appearance of electrical driven machines (in the class of > 700 t excavators) and the travel amount lead to a high risk of damaging the cable or the excavator. Enlarged wear on the travelling parts is also attended by the higher travelling. A direct comparison of commonly found working set ups shows that the ratio between volumes is 32% which leads to an increased travel amount. In comparison with a 250 t BH, the calculation shows that the smaller BH is able to reach nearly 50% of the volume of the super large BHs. The main reason for this is the respectively high reach on smaller machines which, combined with other factors, leads to a significantly higher number of BHs in lighter classes.

Aug 1, 2013

By Song (Bruce) Li

This paper presents a three-tier web-based GIS application that uses Java Server Page (JSP), Java Servlet and relational database to manage performance monitoring and reporting in the oil sands mining industry. It is a real-time Earth Structure Performance Monitoring System (ESPMS), which allows the user to record and store instrumentation monitoring readings as well as technical observations and instrumentation installation documentations into a complete relational database. The ESPMS introduces the advantages of precise field record keeping, due diligence, security, consistency and completeness while at the same time simplifying the task of reporting. ESPMS combines web-based Geographic Information System (GIS) mapping and data management to facilitate the collection, organization, retrieval, reporting and communication of the vast amounts of monitoring data related to mining and tailings engineering associated with site investigation and construction information. ESPMS utilizes web-based GIS technology to incorporate referenced aerial photographs, Energy, Mines and Resources (EMR) maps or AutoCAD drawings as a base map for the monitoring site. It dynamically creates and administers all instrumentation monitoring locations and reading frequencies. It enables the user to collect and manage the data associated with an unlimited number of reading events. It provides the designer with real-time monitoring data (what, why, when, how), thereby allowing them to make early adjustments to design protocols or procedures, or to take remedial action(s) regarding the subject earth structure under construction or after completion. It provides more cost-effective reporting and data sharing through the Internet. It improves security on data entry and eliminates unauthorized data changes. It allows better integration of graphics and illustrations with numerical data files. It is capable of managing the continually expanding workload resulting from new and larger structures in the oil sands or other mineral mining industries. The ESPMS facilitates easier data gathering for preparation of as-built and after-built or regulatory reports, etc. It enables quick location of the interested instruments and summarization of the performance of the instruments. It enables one to visualize performance data and QA/QC construction test results spatially on any given cross-section. Data can be exported to MS Excel for detailed analysis and to evaluate the stability of the earth structures.

May 1, 2004

Inco Limited has been evaluating options for streamlining the overall flowsheet at its Sudbury, Ontario operations to improve productivity and to minimize the cost of at¬mospheric emissions reduction. Some of the flowsheets being considered include vari¬ous levels of copper/nickel separation at the Clarabelle Mill where all Inco's Sudbury Basin ores are processed. This paper reports on the laboratory and miniplant studies car¬ried out during the flowsheet development for a commercial Cu/Ni separation plant. There are two potential feed streams for Cu/Ni separation. It was determined that Cu/Ni separation from the rougher concentrate requires no regrind, and a very clean copper concentrate is produced, but the recovery of copper is limited to about 70% from ore. Cu/Ni separation is more difficult from the bulk concentrate because of the presence of excess flotation reagents in the slurry and due to locked particles. By replacing the slurry water with clean process water, and by addition of some hydrogen peroxide, entrainment is minimized and excess reagents are removed from the surface, providing a satisfactory separation of copper from nickel. Fine regrinding is required to increase liberation of the locked particles and to obtain 85% copper recovery with minimal nickel contamination of the concentrate.

Jan 1, 2005

By E. N. Durussel

"The Fox Mine has been producing copper/ zinc ore since 1970 at a rate of approximately one million tons per year, and until 1978all production was derived from longhole open stopes. In June 1978, a trial stope using bighole mining methods was started to eliminate the development of two sublevels between 400 level and surface. The trial proved to be successful, and bighole mining is now an accepted mining method for both stopes and pillars at Fox Mine.When production blasting was started in the first stope, the biggest problem encountered was the production of large amounts of sulphur dioxide gas as a result of secondary sulphide dust explosions. This gas generation resulted in lost production time and caused minor damage to underground installations to the blast level, and to the headframe. Sulphur dioxide generation has been noted in secondary drawpoint blasts and, on rare occasions, in drift rounds.This paper discusses the occurrence of the sulphur blasts and the practices and precautions used to prevent their reoccurrence at Fox Mine.IntroductionThe Fox minesite is located 30 miles southwest of Lynn Lake, Manitoba. With production startup in 1970, Fox Mine is owned and operated by Sherritt Gordon Mines Limited.The Fox orebody occurs as a large lenticular zone of semi-massive sulphides approximately 1,500 feet long and 15 to 100 feet wide running east and west. Dipping 70 degrees to the north, the orebody tends to bottom out at the 3200-foot level and reaches to within 15 feet of surface."

Jan 1, 1981

By H. Hejny

Given the current status of political discussion in Europe about raw materials issues, the sustainable development of the extractive industry and the reduction of its environmental and societal footprint are among the key topics in this discussion. In this context, the European Commission approved the EO-MINERS project (Earth Observation for Monitoring and Observing Environmental and Societal Impacts of Mineral Resources Exploration and Exploitation). The overall aim of EO-MINERS is to bring into play EO-based methods and tools to facilitate and improve interaction between the mineral extractive industry, authorities, and the society in view of its sustainable development while improving its societal acceptability. Developing generic, standardised and reliable EO-based products to monitor the environmental and societal footprint of mining projects is the way chosen by EO-MINERS to improve this interaction, along with the organisation of tripartite meetings gathering all relevant stakeholders. The project uses existing EO knowledge and carries out new developments on three demonstration sites (Sokolov lignite mining area, Czech Republic, Witbank coal field, South Africa, Makmal gold mine, Kyrgyzstan) to further evaluate and demonstrate the capabilities of integrated EObased methods and tools in monitoring the environmental and societal footprints of the extractive industry during all phases of a mining project, from the exploration to the exploitation and closure stages. It contributes providing reliable and objective information about affected ecosystems, populations and societies, to serve as a basis for a sound ?trialogue? between corporate stakeholders, governmental organisations and societal stakeholders. The project already developed a set of consolidated indicators based upon previous knowledge about mining-related issues along with interviews of national, regional, and local stakeholders. These indicators reflect known environmental and societal issues at mining sites as well as the interest of various relevant stakeholder groups. The process described in the EO-MINERS project ? policy assessment > indicator identification > choice of suitable EO tools able to serve monitoring task > monitoring by EO tools > making available objective information for fair dialogue among stakeholders ? is generally applicable to all stages of a mining project. The key to success will be the right choice of indicators addressing the problem and subsequently the right choice of suitable EO tools and finally the willingness of all stakeholders to find a common solution. To this end, the EO-MINERS project organises site-specific ?trialogue? workshops at each demonstrations site, which aim to provide relevant information in adequate quality to the stakeholders as common ground for discussions. Local stakeholders, including mining companies, regulatory bodies, and community representatives are invited to participate in these workshops where the relevance of the developed EO-based products to environmental and societal impact assessment will be discussed. The presentation will discuss results obtained during these trialogue workshops, as well as the success and difficulties and reluctances encountered. The project will further indicate ways and means how the EO products and other project results may be used for monitoring purposes in all phases of a mine.

Aug 1, 2013

By Terry Aben

Outline ?Review of standards that can be used to identify current coating conditions and optimal points to perform coating maintenance. ?Identify how standards can be used to extrapolate the future condition of coatings to achieve predictive maintenance planning. ?Demonstrate how the above can be combined with project estimating to generate a data driven, quantitative, predictive, risk-based asset integrity maintenance program for Protective Coatings. The Value of Asset Integrity Programs ?Maximize the benefit produced from the investment in maintenance spending. ?Get the best bang for your buck! ?Don?t perform maintenance work before it is necessary ?Money is invested early with no increase in the service life extension. ?Don?t delay until it is too late. ?Planned Maintenance is far less costly than Reactive Maintenance. ?Identify the Optimal Point for Maintenance.

Nov 1, 2011

By Wouter Bleeker, Isabelle Cadieux

"Abstracts of theses related to mineral deposit studies and exploration, completed at geology or earth science departments of Canadian universities, have been compiled for the period 1991 to mid-I993. Part I, presented in the June, 1994 issue of the CIM Bulletin, gave a listing of thesis titles. Part II. which consists of edited abstracts of theses considered to be of direct application to mineral deposit studies and exploration. is presented under various themes as follows:A. Kimberlites, Other Alkaline Intrusions and Related Studies;B. Volcanogenic Massive Sulphide Deposits and Related Studies;C. Mineral Economics;D. Mesothermal Gold Deposits. Other Gold Deposits and Related Studies:E. Magmatic Nickel-Copper, Platinum Group Element and Chromite Deposits and Miscellaneous Platinum Group-related Studies;F. Granite and Pegmatite-related Deposits and Porphyry Deposits;G. Diverse Hydrothermal Deposit,>, Sediment-hosted CopperDeposits and Mississippi Valley Type Lead-Zinc Deposits; andH. Uranium-related studies, Evaporites and Exploration Geophysics.Abstracts related to themes A to F were presented in previous issues of the CIM Bulletin, abstracts related to themes G and H are presented in this issue.G. Diverse Hydrotbennal Deposits, Sedimenthosted Copper Deposits and Mississippi Valley Type Lead-Zinc Deposits"

Jan 1, 1995

By Robert B. Parsons

"This article is based on a paper presented by Jim Scott at the 1988 annual convention of the Prospectors and Developers Association of Canada. The paper suggests a number of factors that might be taken into account in negotiating royalty terms.IntroductionRoyal ties are a part of mining life in Canada. They are used by many kinds of individuals in many kind s of situations. Prospectors commonly take royalty interests back when they transfer claims to development companies. Mining companies disposing of undeveloped (or sometimes even developed) properties are often paid at least in part by royalties. Royalties are even used by institutional investors with no other connection with the resource industry.Such different royalty holders have different investment goals, different cash flow requirements, and different risk / return preferences. These differences have given rise to a number of different royalty type s. These types range from the simplest cents-per-ton royalty (where the operator pays a royalty at a fixed rate per ton milled) to net smelter return or ""NSR"" royalties (where the royalty is based on a percentage of the operator's NSR) all the way to net profit interest or ""NPI"" royalties (where the royalty is based on the operator's bottom-line net profit),The fundamental difference between the many royalty types is in the risk/ return relationship. The cents-per-ton royalty, for example, is relatively risk-free. Of the many economic factors which affect a mine, the only one which will affect the royalty holder is the amount of ore physically milled. On the other hand, the potential for significant gains under a cents-per-ton royalty is also very limited. The royalty holder will not share in any increases in the market price of the end product or any cost reductions achieved by the producer."

Jan 1, 1988

By Robert B. Parsons

"This article is based on a paper presented by Jim Scott at the 1988 annual convention of the Prospectors and Developers Association of Canada. The paper suggests a number of factors that might be taken into account in negotiating royalty terms.IntroductionRoyal ties are a part of mining life in Canada. They are used by many kinds of individuals in many kind s of situations. Prospectors commonly take royalty interests back when they transfer claims to development companies. Mining companies disposing of undeveloped (or sometimes even developed) properties are often paid at least in part by royalties. Royalties are even used by institutional investors with no other connection with the resource industry.Such different royalty holders have different investment goals, different cash flow requirements, and different risk / return preferences. These differences have given rise to a number of different royalty types. These types range from the simplest cents-per-ton royalty (where the operator pays a royalty at a fixed rate per ton milled) to net smelter return or ""NSR"" royalties (where the royalty is based on a percentage of the operator's NSR) all the way to net profit interest or ""NPI"" royalties (where the royalty is based on the operator's bottom-line net profit),The fundamental difference between the many royalty types is in the risk / return relationship. The cents-per-ton royalty, for example, is relatively risk-free. Of the many economic factors which affect a mine, the only one which will affect the royalty holder is the amount of ore physically milled. On the other hand, the potential for significant gains under a cents-per-ton royalty is also very limited. The royalty holder will not share in any increases in the market price of the end product or any cost reductions achieved by the producer."

Jan 1, 1989