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By M. Beth McClenaghan

This paper summarizes diamond exploration techniques used in glaciated terrain, focusing on indicator mineral and geochemical methods applied to glacial sediments. Understanding the ice flow history, depositional history, and stratigraphy of glacial sediments are essential to successful sampling, interpretation and follow-up of indicator mineral and geochemical anomalies related to kimberlites. Kimberlite indicator minerals survive glacial transport over long distances and the relative abundance of each mineral in till is a function of the primary mineralogy of individual kimberlites. Indicator mineral distributions observed at a regional scale define the net effect of glacial dispersal, often along different ice flow directions. Local-scale distributions define individual dispersal trains. The medium sand (0.25 to 0.5 mm) fraction of heavy mineral concentrates prepared from glacial sediment samples is best suited for indicator mineral surveys. The application of till geochemistry to diamond exploration is increasing because it is significantly cheaper than indicator mineral analysis and it can be performed quickly. The <0.063 mm (silt+clay) and 0.5 to 2.0 mm (coarse sand) fractions provide the best geochemical contrast between background and kimberlite-rich till. Kimberlite pathfinder elements that provide good contrast include Ni, Cr, Ba, Co, Sr, Rb, Nb, Mg, Ta, Ca, Fe, K, Ti and REE, the relative importance of which will depend on kimberlite composition as well as that of the surrounding bedrock.

May 1, 2002

By A. J. Lynch

Mineral processing models have been discussed for many years but it was not until digital computers became available about 1960 that serious attempts at circuit simulation could be carried out. Even then the work was primarily academic until PCs could be used by engineers in plants and design offices in the mid-1980s. Since then simulation has moved quickly and it is now at the point that most processes can be simulated reasonably accurately for purposes of design and optimization. There are still some significant deficiencies, notably in dry grinding and separation, and in the chemical interactions in flotation. Future work will involve: ?improvements of existing models ?dynamic simulation for automatic control and, in particular ,for training which is a weak link ?using advanced simulation models to predict liberation and separation from data acquired from SEM-based liberation analysers. Eventually mineral processes models will be part of total simulation systems which will incorporate mining and downstream processes including all environmental impacts.

Jan 1, 1999

By L. J. Olivier

The possible closure and subsequent flooding of South Deep Gold Mine?s (SD) neighbouring Randfontein Estates Limited No. 4 Shaft (REL 4) necessitated the construction of five concrete plugs in the connecting tunnels to prevent the ingress of groundwater into REL4 from flooding SD. This paper describes the proposed controlled flooding of REL 4, the planned in-service monitoring of the five plugs and the water barrier between REL 4 and South Deep Mine, and the long-term maintenance of the plugs and rock mass in the immediate vicinity of the plugs.

Jan 1, 2006

By F. L. Sizer

SOME old-time views which have recently come into my possession have inspired me to record that part of the early history of Leadville, Color- ado, with which I am familiar, the years 1878 to 1882, in the hope that others will add to what is here mentioned. My first appearance in Leadville was in June, 1878, immediately after graduation from the University of Michigan, and I found a congenial and lively crowd of young men, already there. The old log hotel, at the corner of Pine and State streets, housed some distinguished guests in the summer and fall of 1878. It was my good fortune there to make the acquaintance of James B. Grant, afterwards Governor of Colorado, in July of that year, when we were both glad of the accommodation afforded by cots in the second floor loft of the hostelry presided over by Herman Hibschle. Grant was then building his smelter and our associates were Eddy and James, August R. Meyer, and Berdell and Witherell. The Grand Hotel-Harris and Walsh, pro- prietors-was the first-class hotel of the place; but in a very few months there were many competitors.

Jan 1, 1924

This paper sets out to examine the possible relationships between three factors, they are, the rate of growth of world production of minerals, the growth of Australian production and the growth of scientific and engineering knowledge.The first two are quantified, in terms of tonnes and value. The third, an abstract concept &quot;knowledge&quot;, requires to be quantified, in terms of manpower.A mathematical model, which has general application, was derived to demonstrate certain axiomatic premises and to define, more precisely, basic concepts related to the philosophy of knowledge.Finally a summary is made of education-cum-industry issues.

Jan 1, 1981

By J L. Lett, I Brunton, T Thornhill

Block cave fragmentation has been documented in the literature to have a significant impact on mine design, performance and downstream material handling and comminution processes. Due to this impact, emphasis is placed on the premining prediction and subsequent quantification of primary and secondary fragmentation distribution. This paper discusses the fragmentation prediction and assessment methodology employed at the Ridgeway Deeps (RWD) and Cadia East PC1 (CEPC1) cave operations.Prediction of drawpoint fragmentation was based on an iterative process, which relied on an improved quantitative and qualitative understanding of the rock mass as the mining project developed. In particular, the collection of scanline mapping data provided detailed information in relation to discontinuity trace length, persistence, termination characteristics and large-scale planarity. This allowed an improved estimation of select modelling input parameters, in particular ‘block forming’ discontinuity orientation and strength characteristics.With the start of production, drawpoint fragmentation assessment was undertaken using digital image processing (DIP) techniques for drawpoint extracted tonnes up to 61 000 t. This technique provided a consistent methodology to estimate changes in fragmentation as the block cave matured. It can generally be concluded that the measured mean fragmentation distribution became finer as drawpoint tonnage increased. The incremental change in fragmentation distribution (per 10 000 t) was not uniform, with step changes evident. In addition, for a given geotechnical domain and drawpoint tonnage, the measured fragmentation distribution range was found to vary significantly. A possible explanation for these observations may relate to the disturbed flow behaviour noted from marker experiments at RWD and CEPC1. These experiments indicate that material reporting at the drawpoints (for any given tonnage extracted) may be sourced from highly variable heights within the cave, with finer material preferentially reporting.A comparison between predicted and measured drawpoint fragmentation distribution indicated two general findingsa close match between predicted and measured distributions for material greater than 1.0 m3an under prediction of finer material passing 0.5 m3 relative to measured.The findings would indicate that the fragmentation modelling frameworks utilised at both RWD and CEPC1 were deficient at predicting the percentage of finer material for both primary and secondary fragmentation.The wide range in fragmentation distributions observed in the measured results, and the discrepancy between modelled and measured fines should be considered in the design of mine (material flow, extraction level geometry and draw rate), material handling (crushing and material movement), and downstream milling (comminution and metal recovery) processes for future block cave mines at the Cadia Valley Operations (CVO). With respect to fragmentation distribution range, a sensitivity analysis should be undertaken for these design considerations, with a range in predicted fragmentation distributions investigated (for example, lower quartile, mean and upper quartile). For future mines with similar geotechnical and mining conditions, the calibration of fines should be considered in any fragmentation distribution prediction to match those measured previously.CITATION:Brunton, I, Lett, J L and Thornhill, T, 2016. Fragmentation prediction and assessment at the Ridgeway Deeps and Cadia East cave operations, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 151–160 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By H. T. Chiwaye

Risk analysis is an important step in the design of rock slopes in open pit mining. Risk is defined as the product of the probability of slope failure and the consequences of the failure, and is generally evaluated in terms of safety and economic risk. Most of the risk analysis done at present is based on the use of limit equilibrium (LE) techniques in evaluating the probability of failure (POF) of the slopes. The approach typically makes use of full Monte Carlo simulations of the limit equilibrium models, with all uncertain variables randomly varied. The number of required simulations is generally over a thousand, at times as high as 20 000, in order to produce statistically valid results of the POF. Such an approach is clearly not practical when using numerical modelling programs dueto the high computational effort required. This paper explores the impact of using numerical modelling instead of the traditional LE techniques in evaluating the probability of slope failure. The difference in the overall assessed risk, in terms of economic impact, for the mining operation is then evaluated. With numerical models, approximate methods are used in the calculation of the probability of failure instead of full Monte Carlo simulations. This paper will use a method called the response surface methodology (RSM) for estimating the POF from numerical analyses. Simple slope models were used to verify the accuracy of the RSM method by comparing the results with those obtained from full Monte Carlo simulations. It is shown that there is good agreement between the POF values computed using full Monte Carlo simulation and those obtained using the RSM method. Finally, the use of numerical modelling in the assessment of risk is shown to bring a significant difference in the result compared with that from LE methods. One of the reasons for the difference is that LE models tend to underestimate the failure volumes and hence the consequences of slope failure.

Jan 1, 2010

By D. M. Doyle, P. J. Hannon

"The Canada/Nova Scotia Mineral Development Agreement (M.D.A.) is a subsidiary of a five-year Economic and Regional Development Agreement, signed on June 11, 1984. The objectives of the M.D.A. are to strengthen and diversify the Nova Scotian mineral industry and to coordinate federal and provincial policies and programs. The agreement outlines the activities and responsibilities of each government, including the division of the cost (60:40, federal: provincial) between governments. The agreement established a framework for joint planning to avoid overlap or duplication of programs.The M.D.A. programs are broadly divided into five sectors (Table 1 and Fig. 1): Geoscience, Minerals Technology, Development, Firm Specific and Public Information. Each sector is administered by a subcommittee composed of one federal member and one provincial member. The subcommittees report to a Management Committee. The Canada/Nova Scotia Mineral Development Agreement (M.D.A.) Management Committee is made up of Dr. Jack Reeves from EMR and Dr. Richard Potter from the NSDME.The Geoscience subcommittee, co-chaired by Peter Giles (NSDME) and William Poole (EMR), manages the regional geologic, geochemical and geophysical studies in the province. Included in this sector are studies into mineral deposits and the basic geological relationships between mineral deposits.The Mineral Technology sector is co-chaired by the authors, Don Doyle (CANMET) and Pat Hannon (NSDME). This sector of the M.D.A. conducts studies into mineral processing, sampling, deposit byproduct commodities and project feasibility analysis."

Jan 1, 1987

By Doug Harding

The Niagara Tunnel Project (NTP) is a 10.4 km (6.5 mi) long, 14.4 m (47.5 ft)bored tunnel that will run under the City of Niagara Falls from the Upper Niagara River to the Sir Adam Beck Power Station. The completed project will enhance the capacity of the Sir Adam Beck Power Station by adding 500 m3 (17,657 ft3) of water per second through the tunnel. The paper describes the project in which the world’s largest hard rock TBM at14.4 m (47.5 ft) in diameter is being used to excavate the tunnel. Features of the project include the use of a High Performance (HP) Main Beam TBM, state-of-the-art ground support and tunnel logistics systems. A continuous conveyor is used for muck transport from the TBM to the disposal area. The paper will also discuss the optimization of the TBM system as the tunnel advances through the varying geology. In June 2004 the Ontario Government announced that Ontario Power Generation(OPG) had been given approval to proceed with the third tunnel under the city of Niagara Falls—the first two tunnels were constructed in the 1950s using drill and blast techniques. The third tunnel, appropriately named The Niagara Tunnel Project (NTP), consists of a 10.4 km (6.5 mi) long TBM-bored, concrete-lined tunnel with a finished diameter of 12.5 m (41.1 ft). In August 2005, OPG announced the selection of Strabag AG of Austria, one of the largest construction companies in Europe, as the contractor to build the NTP Project at a price of CAN $600 million. In September 2005, Strabag A.G. selected The Robbins Company of Solon, Ohio to design, manufacture and deliver a new 14.4 m (47.5 ft) diameter High Performance state-of-the-art Main Beam Hard Rock TBM to be used in the excavation of the tunnel. In order to meet the aggressive construction schedule as requested by OPG/Strabag, the TBM needed to be supplied as “ready to bore” within a 12 month period after the contract was awarded to Robbins.

Jan 1, 2007

By C. Dixon

This paper is based on the assumption of some knowledge of the National Water Act. It will consider the question of how that Act fits in with: a) existing laws which overlap on the subject matter b) new laws either in draft or in the process of being compiled c) policies which will eventually find their provisions included in new legislation (e.g. minerals policy) d) international practices. The focus will be specifically on the interaction of legislation relating to water use and water pollution in the mining sector as well as the role of the Department of Water Affairs in mining matters. Hence the title of the presentation.

Jan 1, 1999

By Woodcock J. T

When an aqueous suspension of pyrite and a manganese ore reacts with oxygen, manganese is dissolved by the ferrous sulphate and sulphuric acid produced in situ by oxidation of pyrite. In the absence of added acid, the optimum conditions are: a molecularratio of Mn02/FeS2 of about 1&#183;0, a temperature of about 1400 C., and an oxygen pressure between 25 and 90 lb./sq. in. Under these conditions, complete extraction of manganese is obtained in six hours leaching. An addition of sulphuric acid enables an Mn02/FeS2 ratio of 2&#183;0 to be used successfully.Manganous sulphate decreases in solubility with increase in temperature above 1000 C., but even when the solubility limit is reached during leaching, reaction to form MnS04 still proceeds, and on cooling the MnS04 redissolves.INTRODUCTIONMany manganese deposits contain secondary manganese oxide minerals which are difficult to concentrate. Considerable attention has therefore been given to their hydrometallurgical treatment. In most manganese oxide minerals, the manganese is quadrivalent and must be reduced to the divalent state for dissolution. Reduction and dissolution can be accomplished in a number of ways, one method being to use aqueous ferrous sulphate solutions.A possible source of ferrous sulphate is pyrite as it is known that ferrous ion is an intermediate product in the aqueous oxidation of pyrite. It was therefore thought possible, that by heating an aqueous suspension of manganese oxide and pyrite with oxygen, the ferrous sulphate and sulphuric acid formed from pyrite would provide the necessary leaching reagents for manganese in situ. There are certain advantages in producing ferrous ion in situ...

Jan 1, 1958

By N E. Whitehead

An application to mine an ilmenite-rich sand deposit in Westland led to public concern about potential radioactive hazards should the ore be further processed to recover zircon or monazite. A review recommended that any material involved in the heavy mineral sand industry containing more than 0.05% thorium, uranium or their mixture should be considered a radioactive substance and, for mining purposes, a notifiable product. Safeguards for those occupationally exposed would operate via the Radiation Protection Regulations. The major safety requirement would be the minimisation of dust in certain operations.

Jan 1, 1993

By R. Weideman, M. Le Roux, F. B. Waanders, Q. P. Campbell, E. Fosso-Kankeu, D. Moyakhe

"*Paper written on project work carried out in partial fulfilment of B.Eng (Chemical Engineering) degreeSynopsisSpent coffee grounds were transformed into biochar using a hydrothermal method. Some of the biochar product was pre-treated through surfactant impregnation with sodium dodecyl sulphate (SDS) to enhance its adsorption capacity. The non-treated(NT) and pre-treated(PT) biochars were characterized using FTIR spectroscopy and SEM-EDS analyses, which revealed that the products had the potential for adsorption of heavy metals from solution and confirmed the successful impregnation of biochar with SDS surfactant. The two adsorbents were then used for the removal of cadmium from solution and the adsorption behavior and capacity determined through adsorption isotherm, kinetic, and thermodynamic studies. It was found that the cadmium was adsorbed in several concentric layers on the surface of the adsorbents through a chemisorption mechanism. The PT biochar was identified as a superior adsorbent, with a capacity of qe = 10.67 mg/g compared to the NT biochar with qe = 4.82 mg/g. The adsorption of cadmium onto the PT biochar was further determined to be spontaneous and endothermic. It was therefore concluded that the PT biochar shows potential as an adsorbent and could be considered for implementation in the treatment of metal-polluted effluents. IntroductionCoal mining operations are notorious for producing large amounts of waste tailings, which are disposed of in the form of a slurry on tailings dams. This inadvertently contributes towards environmental problems (Jin, Mansour, and Thomas, 2017). Heavy metals are one of the most common pollutants that originate from solid mine waste disposal facilities, and these can leach into groundwater supplies, contaminating them and rendering the water unsuited for human consumption (Salomons, 1995). Cadmium occurs in conjunction with metalliferous ores and can cause severe damage to agricultural soils and drinking water supplies in the vicinity of mining sites (Dudka et al., 1995). It has a tendency to migrate into the surrounding vegetation, which in turn can cause harm to humans and animals when consumed (Marquez et al., 2018)."

Jul 1, 2019

By O. Rabeau, M. Legault, A. Cheilletz, L. Z. Cheng, J. J. Royer, M. Jébrak

"By compiling geological, structural, geophysical, and geochemical information into a 3D geological model, we evaluated the orogenic gold potential in the vicinity of a hidden segment of an important Archean fault zone, the Cadillac-Larder Lake fault (CLLF) in the region of Rouyn-Noranda. The segment of CLLF in the present study is partly covered by Proterozoic sedimentary rocks. Because more than 2000 t Au have been extracted along the CLLF to date, our objective is to evaluate the gold potential at depth along a poorly known segment of this fault. A 3D geological model (50 km × 9 km × 1.5 km) including the covered segment was built through the compilation and homogenization of available geological data and the construction of 23 cross sections. The geology under the Proterozoic cover was evaluated using geophysical inversions, drill holes (42 in total), and surrounding geology. All available assays were filtered and upscaled to a 250 m × 250 m × 250 m regular cell grid to determine and quantify spatial relationships between geological features and mineralized occurrences using the weights of evidence method. Structural features, such as E-W-trending faults and fault intersections, and certain lithologies with a high primary porosity such as volcanoclastic rocks of the Blake River Group and Timiskaming sedimentary rocks, proved to be very prospective, yielding favourable factors with a weight of evidence index W+ > 0.24. These salient features were then assigned a combination index for ultimately evaluating the orogenic gold potential under the sedimentary cover. The zones resulting in an optimization of exploration targeting were attributed the highest probability, representing ~1% of the initial volume. La compilation des données géologiques, géophysiques, structurales, et géochimiques et leur intégration au sein d’un modèle géologique 3D a permis d’évaluer le potentiel aurifère dans les environs d’une importante zone de faille archéenne sous couverture protérozoïque. Cette méthodologie a été développée en utilisant le cas de la Faille Cadillac-Larder Lake (FCLL) dans la région de Rouyn-Noranda. Puisque plus de 2000 t d’Or ont été extrait à proximité de la FCLL, l’objectifs des travaux est l’évaluation du potentiel aurifère en profondeur de ce segment. Un modèle géologique 3D (50 km × 9 km × 1.5 km) incluant le segment sous couverture de la FCLL a été construit en utilisant l’ensemble des données géologiques disponibles et 23 coupes géologiques. La géologie du socle archéen sous la couverture protérozoïque a été interprétée avec des inversions géophysiques, des forages (42 au total) et les contacts géologiques exposés. Les teneurs aurifères dans le secteur ont été filtrées et ajusté à une grille régulière de 250 m × 250 m × 250 m afin d’évaluer et de quantifier les relations spatiales existantes entre certaines entités géologiques et les emplacements minéralisés en utilisant la méthode du poids de la preuve. Les failles de direction Est-Ouest, les intersections de failles ainsi que certaines lithologies possédant une porosité primaire importantes comme les certains tuf du Groupe de Blake River et les sédiments du Timiskaming se sont montrés très prospectifs avec des valeurs de W+ > 0.24. Ces entités géologiques ont ensuite été utilisées par le biais d’un indice de combinaison pour évaluer le potentiel en or de type orogénique sous le couvert sédimentaire. Cette méthodologie permet une optimisation des campagnes d’exploration puisque les zones pour lesquelles la probabilité de minéralisations a été évaluée à la plus haute valeur représentent 1% du volume initial."

Jan 1, 2009

This paper on the relation of Granite and Sedimentary Contacts to Victorian Mining will, it is hoped, be of interest to members of the Institute.The broad fact that gold often occurs&apos; at or near the junction of granite with sedimentary silurian or metamorphic rocks has been noted by some Victorian geologists, miners, and prospectors; but the fuq practical value -of the fact does not seem to have been fully realised by prospectors. Glancing at the Geological&quot; Map of Victoria, one can see that many of our goldfields &apos;are situated at or near the junction of granite with Palceozoic sedimentary formations, and that some of our alluvial fields are on granite. Many prospectors are possessed of this knowledge but when prospecting a contact locality, they would be just as likely to confine their search for auriferous matrices to spots a quarter of a mile on the sedimentary side, as on the actual contact line of two formations.

By Ralph Spickermann

UK Seabed Resources (UKSR) signed a manganese nodule exploration contract with the International Seabed Authority on 8 February 2013 for a 58,000 km2 tract on the eastern edge of the Clarion Clipperton Zone (CCZ). UKSR is a private company based in the United Kingdom and established primarily to develop the commercial potential of the CCZ deposits. This is the first of many anticipated regulatory, market and technical milestones that are requisite for (1) environmentally responsible commercial scale production of nodule derived metals and (2) generation of revenue through their sale in the global commodities market. This presentation will describe the progress made to date in this effort and an industry-based perspective on the tasks and challenges that may lie ahead.

Sep 1, 2014

Lead isotope measurements indicate that lead from the A.B.H. Consols mine and two transgressive veins in Browne&apos;s shaft is &quot;Thackaringa&quot; type and not &quot;Broken Hill&quot; type.

Jan 1, 1970

A review of historic mining information and geological literature pertaining to the Alpine Mine, Lyell Goldfield has been completed. As a result of this work the Alpine reef is inferred to be associated with an upright anticline with a sub-horizontal axis. Structural profiles prepared from limited underground data indicate that the reef is subparallel to the eastern limb of the anticline and cuts across the western limb. Reassessment of structural mapping completed by the New Zealand Geological Survey indicates that Greenland Group metasediments within the Lyell Goldfield are folded into a series of opposed assymetic folds with sub-horizontal axes. It is suggested that the anticline which harbours the Alpine Reef is located on the axis of a synclinorium. Along the western limb of the synclinorium the subsidiary folds have steep west dipping limbs and shallow east dipping limbs (western sense of assymmetry) whereas shallow west dips and steep east dips are typical of the eastern limb. The notion of quartz mineralisation occupying the axis of a synclinorium is contrary to the situation in the Reefton Goldfield where quartz mineralisation is affiliated with folds associated with an anticlinorium. Historic mine data reveals that below No.4 Level the quartz-gold mineralisation, in the Alpine Mine, occupied a steeply dipping ore channel. The strike of the channel was to the northwest and within this structure the are shoots plunged to the north at approximately 40¦. Archival mine plans show that two quartz bodies, the North and South Blocks, were present at No. 4 Level. Although the North Block was followed down to No 14 Level (530 m vertically below the surface outcrop) the South Block was only mined as far as No 7 Level. Sampling on No 7 Level together with the results of trial mining suggest that the grade of quartz underfoot in South Block is low. Information from the Mines Statements and mapping undertaken by the Gold Prospecting Scheme reveals that faulting had a profound influence on the intregity and extent of the Alpine Reef. The reef occupies a Inajor shear zone but little is known about it. It is also apparent that below No 7 Level the reef was progressively shattered by faulting and this may be the chief reason for the decrease in grade in the lower levels of the mine. No substantive facts are available about wall rock alteration effects adjacent to the Alpine Reef Still this is not surprising considering that comments on the mineralised pug envelope and breccias adjacent to the mined quartz shoots at the Globe - Progress Prospect were omitted from contemporary publications. In spite of this the existance of sulphide bearing reef casing lithologies cannot be completely dismissed since 9.15 m of &apos;reef track&apos; has been reported in Reids No 2 Level.

Jan 1, 1996

By P. M. Cole

An unprecedented expansion of the global zinc industry is currently under way. While most new projects and plant upgrades remain committed to traditional processing technologies, recent advances in zinc solvent extraction (SX) have created opportunities for new process routes for both primary and secondary materials. The first commercial plant to use zinc SX for the mainstream processing of a low-grade ore is under construction and promises to become one of the lowest cost zinc producers. Several other oxide and sulphide projects in various stages of feasibility are considering the inclusion of SX in their process flowsheet. Zinc SX has also proved advantageous in the reprocessing of secondary materials, particularly for the treatment of zinc residues and furnace dusts. This review focuses on recent installations and projects underdevelopment that feature zinc SZ as the key separation step.

Jan 1, 2002

By I. Benning

Since the dismal performance of the Rand Mines management was called to account by its shareholders in 1994, the waves of change have continued to ripple across the South African mining industry .The number of listings on the gold board of the Johannesburg Stock Exchange, that once numbered 40 or 50-odd, have now dwindled to no more than a handful as unprecedented restructuring has taken place. The redefining of the industry has not been limited to the gold sector, but across the base metal, coal, diamond, platinum and industrial mineral sectors as well. At the same time the Mining Houses began to reconsider their funding strategies. Originally established in the early part of the century to ensure the long-term sustainability of their group mining operations by providing substantial financial muscle and technical support, the Mining Houses were faced with a rapidly changing political environment, which proved to be a critical catalyst in giving momentum to the change. Furthermore, the significant development costs and increasing risk profile for new projects, coupled with pressure from shareholders demanding respectable returns, opened the door to opportunities for banks to begin providing external debt by the way of project finance. However, the provision of long-term debt to the South African mining industry had generally not been common since mining companies had financed new projects with equity, or with the cash flows from existing operations. Those banks that had the appetite for exposure to the perceived high risks of the mining sector rapidly built up specialist resource banking divisions capable of addressing the increasing demands of the industry. The application of project finance, the principles of which were developed in the 1970s specifically for infrastructure projects and privatization, is now commonly applied in the financing of greenfield and brownfield mining projects. This paper outlines the approach that lending banks would typically adopt when arranging or providing mining project finance, their usual areas of concern and the way in which the finance is structured to mitigate the many inherent risks.

Jan 1, 2000