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"Pilot plants for pressure hydrometallurgy represent special design and project execution challenges. Over the past twenty years, Zeton has designed and fabricated a variety of world-class pressure hydrometallurgical pilot-plant facilities, and this paper discusses design considerations and strategies related to such projects. Project execution methods are also discussed, and guidance is given for the selection of materials of construction and for the selection of appropriate pressure and temperature design points for pressure hydrometallurgical pilot equipment. The paper concludes with a discussion of the need for process similarity with future commercial operations and the realities of pilot-scale equipment.INTRODUCTIONThe process technology developer or owner and the designer/fabricator of a new pilot-plant facility are faced with some difficult technical choices even after the decision to build a dedicated plant has been taken. A pilot-plant project is usually on the critical path of a large commercial project involving investments many multiples greater than the capital cost of the pilot plant. Schedule savings in the design, manufacture, and commissioning of the pilot plant or in a rapid completion of the experimental program can be disproportionately beneficial to the overall development project. However, inappropriate shortcuts resulting in major oversights can be disproportionately problematic.A number of considerations and suggestions for both the project execution approach and the process engineering design of pressure hydrometallurgical pilot-plant facilities are presented as a guide for potential owners and operators of new pilot-plant equipment and facilities."

Jan 1, 2012

By J. S. Lewis

Beneficiation and physical and chemical processing of non-terrestrial materials borrow strongly from terrestrial experience, but also involve the necessity of handling literally un-Earthly feedstocks, reagents, and environmental conditions. The present state of scientific and engineering understanding of the processing of non-terrestrial minerals, gases and hydrocarbons is reviewed with the production of rocket propellants, life-support fluids, structural metals, and refractories as the goal.

Jan 1, 1992

By L. J. Kane

Applications are described of various methods for determining the weight concentration and physical properties of solid and liquid impurities of gases in connection with problems encountered in synthesis-gas production. Of special interest among these methods may be listed: 1. A method developed for determining, the weight concentration of solid and liquid impurities in. hot, crude synthesis gas containing a high concentration of moisture. 2. A method developed for the same purpose but for highly purified synthesis gas or atmospheric air. 3. A method for obtaining a uniform dispersion of dry duet or, a microscope slide for particle-size determination or other purposes.

Jan 1, 1954

By J. W. Motter

Currently, virtually all new electric power generation systems under construction are designed with natural gas as the primary fuel. Factors driving these construction decisions involve sustained low prices for natural gas, environ-mental (and consequent regulatory) risks associated with the use of coal for power generation, and relatively high costs of construction for conventional coal-fired power plants. Despite the unarguable abundance of coal in the US. and worldwide, a fundamental question arises: What will be the role of coal in electric power generation in the 21st century? Congress, recognizing the vital and strategic importance of preserving the coal option for electric power generation, authorized the Clean Coal Technology Program. This pro-gram, with original funding in excess of $2,500 million, is intended to promote the demonstration and commercialization of a new generation of clean, efficient coal-based energy technologies through collaboration and partnering with private industry. The two technologies being demonstrated under this program which are the key to the continued use of this nation's huge coal reserves are coal gasification and the pressurized fluid bed. Either or both of these technologies, coupled with a combined cycle will pro-vide the continuing future coal option, while responding to increasingly more restrictive environmental standards. Recent Congressional budget-cutting efforts, however, could threaten the effectiveness of that model program, and ultimately other subsequent government-industry collaboration.

Jan 1, 1996

By Wiebe Boomsma

INTRODUCTION Starting in February 2014, 19 partners from EU industry, research institutions and academia joined forces and formed the Blue Mining consortium. In the following four years, they have set out to work on the development of deep sea mining technology, looking into exploration, identification, economic assessment and vertical transport systems for the mining of seafloor massive sulphides and polymetallic nodules. In the beginning 2018 this research & development project has come to an end. The Blue Mining project was one of the first EU subsidised projects embracing the TRL system. This system describes a method of de-risking technology using a simple 9-step approach. This method requires experimental testing in laboratory and relevant environments to be able to reach the higher levels (TRL>5) This paper will discuss the progress in development of the vertical transport system, with a focus on the performed experimental work. This paper will discuss three topics: • Booster station technology • Riser dynamics • Vertical hydraulic transport process. BOOSTER STATION TECHNOLOGY Deep knowledge of transport processes is a prerequisite for a clog free vertical transport One of the key technologies in the VTS is the booster station. The centrifugal pump booster station concept is developed in Blue Mining, it consists of two centrifugal pumps and multiple valves, assembled in member-type frame. Deep sea conditions pose special requirements on all components due to the extreme pressures at large water depths. In the Blue Mining project a Deep Sea Special Motor has been developed and tested in laboratory and in the field. The motor is completely filled, lubricated and cooled using seawater due to its unique open structure, furthermore it does not require any lubricants minimizing the environmental pressure of the motor. The motor is first extensively tested in a laboratory, after these tests have been concluded successfully, the motor is shipped to Norway where it has been successfully tested for more than 100 hours at 425 meter water depth.

Jan 1, 2018

By C L. McIntosh

The west coast of New Zealand’s south island is host to a large number of placer goldfields that stretch from the Westport area in the north to Gillespies Beach in the south and inland to the foothills of the Southern Alps. This area is host to a large number of alluvial, glacial and strand line deposits ageing in range from Recent to Tertiary. In recent years exploration models have been developed for off shore placer deposits on the continental shelf.Gold mining on the west coast has exploited placer gold resources from the 1860s to present, and with the recent surge in the gold price the industry is currently undergoing a resurgence. The current increase in mining is dominated by small-scale mechanical operations usually involving one to two people at each site; a few larger operations also exist such as the Grey River Dredge.Mining methods range from using floating bucket dredges to small diggers. Some of the mining technologies used are similar to those employed during the great gold rushes of the 19th century. Exploration and grade control techniques can be very rudimentary often relying on previous sampling programs or wide spaced bulk sample drill holes. Some bulk sample drilling is used on the larger operations as a form of grade control, most of the small operations tend not to use any ore control sampling prior to mining. Extraction techniques relying on simple gravity based designs with riffle tables or spirals are the most commonly used. Environmental standards are very high within New Zealand and require operators to return mined areas to preagreed to landforms. The high rainfall experienced on the west coast causes challenges to operators in regard to water quality. Technical issues combined with often limited capital provide for challenges to the operations.

Aug 22, 2011

"EAF dust is categorized as a hazardous solid waste. EPA approves only two treatment methods: either sending the dust to zinc recycling facility, or stabilizing it first and then disposing it to a specially-lined landfill. Both treatment methods are costly to EAF steelmakers. In order to reduce the cost and even better to make profit from the dust, EAF steelmakers need to find a costeffective technology to separate zinc from EAF dust. This paper is dedicated to discussion of a novel recycling strategy: in-process separation of zinc from EAF dust. The concept of in-process separation of zinc from EAF dust is first defined, and then a simple Zn concentration model is developed. From this model, two approaches of in-process separation of zinc from EAF dust are derived: (1) prematurely capturing dust at very high temperature when zinc is still in vapor status, (2) prematurely collecting dust immediately after quickly cooling EAF off-gas from high temperature to low temperature. Next, thermodynamic analysis is conducted to understand zinc behavior in EAF off-gas. It is demonstrated in theory that zinc is in vapor status while it exits from electric arc furnaces. At last, recycling routes and economics of in-process separation of zinc from EAF dust are discussed.IntroductionElectric arc furnace (EAF) plays an increasingly important role in steel production. According to USGS, steel production from electric arc furnaces has long exceeded that from basic oxygen furnaces [JJ. In 2009, electric arc furnaces produced 64% of total steel in the United States.Along with the fast growth of EAF steel production, generation of EAF dust is also rapidly increasing. A survey by AIM Market Research showed that 10 - 20 kg EAF dust was generated for every ton of EAF steel produced [2] In 1999, the United States alone produced 770,000 metric tons of EAF dust [3] In Europe, annual generation rate of EAF dust is more than one million tons [4-5]. In Japan, about 450,000 tons of EAF dust is produced each year [6] Globally, total generation of EAF dust was estimated to be more than 5 million tons per year [5] EAF dust is categorized as a hazardous solid waste since it often contains heavy metals, such as lead, chromium and cadmium. US Environmental Protection Agency (EPA) approves only two methods for treating EAF dust: (1) recycling the dust by EAF-dust recyclers, and (2) specially landfilling the dust for disposal after it is chemically stabilized. These two methods of treating EAF dust are both very costly to EAF steelmakers. It was estimated that a fee of $150 to $200 per ton of EAF dust was paid for various treatment options, which added approximately $2 - 3 cost for every ton of liquid steel produced by electric arc furnaces [?J."

Jan 1, 2011

By L. C. IlsLey

A list of permissible mine equipment approved by the Bureau of Mines before January 1, 1940, was published in Bureau of Mines Information Circu- lar 71103. Information Circular 71584, published as a supplement thereto, listed equipment approved during the calendar year 1940. The present list contains the information given in those two circulars, as well as approvals issued during the calendar year 1941. It embraces electrically operated air compressors, coal drills, conveyors and loading machines, electrical equipment for mine fans, mining machines and trucks, mine pumps, rock- dust distributors, room hoists, storage-battery gathering and haulage locomotives, storage-battery power trucks and shuttle cars, mine telephones, junction and distribution boxes, electric cap lamps, flame safety lamps, electric hand and trip lamps, electric flood lamps, flashlights, methane detectors, and single- and multiple-shot blasting units. The equipment listed is not approved by the Bureau of Mines until found by inspection and test to comply with minimum standards of safety as outlined in "schedules" prepared upon the basis of many years of ex- perience in dealing with safety problems confronting the coal-mining in- dustry. The use of such equipment in mines that are known to be gassy,. as well as in those that may become so, is earnestly recommended in the interests of safety. This circular is published so that the industry may be kept informed as to the many types of machines, devices, and lamps that are available for reducing explosion and other hazards incidental to coal mining.

Apr 1, 1942

By Ali Nadir Khan

Depleting copper resources and advancing technologies have challenged industries to develop more viable, adaptable and cost efficient processes using also secondary raw materials in copper production. This study is targeting to that goal by dynamic modelling of flow and heat transfer coupled with chemical kinetics in an industrial scale flash smelting furnace settler using commercial CFD software ANSYS Fluent. First, different physical phenomena occurring inside the settler, for example, settling and separation of the matte/slag phases, and heat transfer between slag/matte phases and settler walls are studied. Secondly, reaction kinetics between matte and slag, and between slag/matte and settler walls, and impurity element distribution will be studied. This would also include phase changes phenomena due to these reactions and the flow of the reaction gases inside the settler. Settling of polydispersed droplets, their coagulation, breakage, and WEEE particle behavior are further targets of the modelling work.

By J. F. Magee

THERE is nothing new about drag-line dredging for placer gold. The use of the separate unit for excavating preceded the large barge with bucket-line excavator mounted upon it, which has developed to a high state of perfection through use in every part of the world. But at present there is a vogue for a small, inexpensive plant to work economically the shallower gold gravel deposits that the bucket-line dredges do not work. The dragline dredge consists of the drag-line excavator, on caterpillar mounting on the edge of the dredging pond, which feeds the gravel to the washing plant, mounted on a floating barge in the pond. There have been more than twenty-five such plants built and operated in central and northern California and an unknown number in other States. There have been variations in details of design but the essentials are similar in all. I wish to describe the operation of a typical drag-line dredging plant, that of the Wyandotte Gold Dredging Company on the Farnan Ranch in the Oroville district. This organization of six active partners built their first plant on Wyandotte creek in the autumn of 1933. The operation was successful due to wise management, which was based upon good plant design and proper principles of operation. The partners elected one of their number, H. F. England, as manager with full control and responsibility. This plant and operation furnished the pattern for many subsequent ones.

Jan 1, 1937

By T. H. Jeffers

Significant amounts of cobalt are present in readily accessible spent copper leach solutions. The Bureau of Mines investigated the feasibility of extracting cobalt from these solutions in a multiple-compartment ion-exchange (MCIX) column. The effects of aqueous flow rate, resin flow rate, column height, and compartment height on cobalt extraction were determined. Cobalt extractions of 92 pct or higher were achieved at solution flow rates of up to 5.5 gpm/ft of column cross-sectional area and an aqueous-to-resin flow ratio of 40:1. Overall cobalt extraction increased as the column height increased, but cobalt extraction per unit of length was more efficient in 8-and 12-ftco1umns than in an 18-ft column. Solvent extraction procedures were utilized to purify and concentrate the MCIX column eluates and produce a cobalt sulfate solution containing 70 to 80 giL Co. Metallic cathodes containing over 99 pct Co were e1ectrowon from this solution. Zinc, nickel, and copper byproducts were also recovered during processing of the ion-exchange eluates. Estimated total capital cost for a commercial-scale 10,000 gpm of a spent leach solution containing 26 million. With credits for zinc, nickel, and copper estimated net operating cost was $9.36/lb Co.

Jan 1, 1987

With unprecedented worldwide growth and increasing global demand for energy expected to swell by 60 per-cent in the next two decades, mining matters as much now, if not more, than it ever has. This was the consensus at the 110th Annual National Western Mining Conference presented by the Colorado Mining Association, Feb. 12-14 at the Westin Hotel in Denver, CO. The role of coal ? America?s most abundant energy source ? the future of uranium and its possible resurgence in the energy marketplace, the skyrocketing value of gold as well as the issues of health, safety, climate change, legislation and government?s role in mining were all discussed during the three-day conference that operated under the banner of ?Mining Matters.? Barbara Filas, chairperson of the 110th National Western Mining Conference, president of Knight Piesold Co. and former SME president, welcomed the record crowd with an inspiring speech in which she pointed out that although ?most normal folks don?t know what role mining plays in their everyday life, mining does matter. ?Our industry,? she said, ?matters to Colorado. It matters to Colorado because it is a $3-billion industry. It matters to the 13,000 people who are employed directly or indirectly by the industry and it matters to schools that receive more than half of the royalties that are generated by mining.? During discussions of mining?s place in Colorado, the western United States and the world, special attention was paid to coal, uranium and the future of energy. ?It is time to rethink our perceptions about coal,? said Mark A. Smith, president and chief executive officer of Chevron Mining Inc. He spoke during the opening reception in a presentation titled, ?Coal to Liquids: Bridging America?s Energy Gap.? Although coal is America?s most abundant, and cheapest energy source, it is also one of the most scrutinized because of the pollution it causes and recent, and heavily publicized, tragedies that have claimed the lives of some who mine it.

Jan 1, 2008

By M. Reda

Inorganic oxidizing agents of the type MeOx-z such as Chromate, Vanadate, Tungstate, and Molybdate... etc. are widely used as corrosion inhibitor. In non acidic solution these oxidizing agent are reduced on the surface of the meta, according to OX + m e + p H20 Red + n OH" In which y = (n-m)/m. The purpose of this publication is to show that for many metals the value of y for any oxidizing agent determines the possibility of that oxidizing agent being an inhibitor or activator for the corrosion process. The inhibition efficiency for other ions such as Pertecnetate and Tellurate which have not been extensively studied can be predicted. A mathematical, equation was derived to express the relationship among the concentration of oxidizing agent, degree of retardation of the corrosion process I cord cor ° (ratio of corrosion current in the solution containing inhibitor to the base solution) , ionic strength of the solution and the coefficient y. The validity of y and the mathematical, equation were verified by many experimental, works on various metals such as zinc, aluminum and steel. Al, the above research works are based on the published research works of Prof. Mikhailoviskii (from 1979 til, 1998) from the Russian Academy of Science.

Jan 1, 2010

By Utley Wedge

In general, the art of securing copper from sulphide ores or concentrates may be said to consist of: (1) separation, in the molten state, of copper sulphide with some iron sulphide, from the great bulk of gangue-material, followed by (2) elimination of sulphur and iron from the molten matte, by oxidation and fluxing, leaving metallic copper. The definition is made broad enough to cover the general practice, whether or not the ore or concentrate is given a prelimiuary roast for the removal of surplus sulphur. The above process, which I will designate as the smelting process, makes necessary the presence in the ore, or the addition thereto, of such silica, lime, and iron as may be necessary for the formation of a light and fusible slag, together with sufficient sulphur and iron for the formation of copper-matte, and also the addition to the matte of sufficient silica for the oxidation and fluxing-out of the iron. These items, together with the cost of fuel sufficient for melting the mass, constitute important items of cost in the copper-smelting process. Numerous cases where fluxing-materials are scarce or dear, or where fuel is expensive, have caused special attention to be given recently to the wet process of copper-extraction, which may be designated as consisting of forming soluble copper salts which are then washed or leached out of the ore or concentrates by dissolving in water or acid. Metallic copper may then be secured from the solution of copper salts by electrolysis; by cementation; or copper can be brought out of the solution as a hydroxide or other insoluble precipitate and reduced to metallic copper by subsequent melting in a reducing atmosphere.

Jan 1, 1913

By Torben Ulisses da Silva Carvalho

A têmpera é um dos tratamentos térmicos mais utilizados nos aços, visando o aumento de sua dureza a partir de mudanças drásticas em sua microestrutura. A fim de aliviar as tensões provindas desse tratamento, realiza-se o revenido, fazendo com que o aço obtenha propriedades mecânicas viáveis ao uso. Este trabalho teve como objetivo realizar os tratamentos térmicos de têmpera em água, salmoura e óleo e, posteriormente, o revenido no aço SAE-4140 fornecido pela SINOBRAS, uma siderúrgica de Marabá-PA. Foi realizada a caracterização microscópica das amostras antes e depois dos tratamentos, sendo possível visualizar as mudanças na microestrutura do material, além da confirmação do aumento de resistência mecânica através do ensaio de dureza.

Aug 16, 2017

By B Hawkins, S Durkin, V Lawrence

The requirement for secondary egress from underground workings has long been regulated in Australia. Escape way systems have evolved from simple airleg rising ladders and timber ladders to steel galvanised ladders and more recently fully enclosed polyethylene ladders.The polyethylene ladder, Safescape Laddertube, was introduced to the underground mining industry in 2010. It is an enclosed cylindrical modular plastic ladder designed for use in underground escape ways and access ways. Since its first installation in May 2010, the Laddertube has been installed in 43 mines across four countries, totalling 8800 m of ladders installed to December 2013.The Cracow Gold mine is one operation using Laddertube, located 500 km north-west of Brisbane, Queensland, Australia. Upon discovering and developing both the Empire and Roses Pride orebodies, a safe and economically viable secondary egress system and surface primary ventilation exhaust shafts were necessary to support development and production activities to these workings. The need arose to merge these two critical requirements together between surface and underground mine workings some 200 m and 400 m respectively for each orebody. Neither egress has intermediate access points within their full service length from top to bottom. Several options were considered, the preferable and most feasible method adopted was Laddertube.The longest egress length requiring Laddertube within the two vertical surface exhaust shafts was 400 m long, within a 3.5 m diameter shaft. Due to the length of the vertical Laddertube system in both egresses, personnel are to be assisted by mechanical means using the Extended Ladder Climb Assist system.The Gossan Hill mine also uses Laddertube for their escape ways. Part of the Golden Grove operation, Gossan Hill is an underground sublevel open stoping mine located in the mid-west of Western Australia.With a considerable mine life remaining and a history of acidic water and stress related deterioration in vertical openings, the mine operators sought an escape way solution that would provide for the long-term needs of Gossan Hill. Laddertube was selected due to its non-corrosive properties and the ability to fill in around the ladder way to provide stability to the raise opening.Laddertube is a recent development in escape way systems, and is effectively being applied in a variety of operations, meeting the specific needs of underground mines.CITATION:Durkin, S, Hawkins, B and Lawrence, V, 2014. The application of Safescape Ladders at the Cracow and Golden Grove operations, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 311–318 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By T. Banerjee, R. deS. Almeida, D. Gudgeon, F. C. F. Batista, L. deÁ. Silva

"Yamana Chapada’s mine is one of the larger copper-gold mines in Brazil. The mine is located in Goiás state, in the central part of Brazil. The mine has estimated Mineral Reserves of 4.1 million ounces of gold and 3.2 billion pounds of copper as of December 31, 2016. While gold and silver are significant, Chapada’s process flowsheet is configured closer to that of copper facilities. This includes a SAG/Ball configuration for grinding followed by flotation. In the case of Chapada, the mineralogy results in higher-than-normal complexity, notably a significant circulating load both in the grinding and flotation circuits. From an operating perspective, the complexities are controllable, but require careful attention to ensure that circulating loads are effectively managed and gold is not lost to tailings. Chapada created an automation roadmap in 2016 designed to increase plant performance (tonnage, recovery and efficiency). Based on strong potential, the project was fast tracked and within 4 months instruments were installed, control algorithms implemented, and training sessions took place to ensure sustainability at site. This paper will follow the Chapada journey from identifying the opportunities through to implementation and testing.IntroductionYamana Chapada mine is a Copper-Gold mine located in Goiás State, Brazil. Although the mine contains large quantities in Mineral Reserve of gold (4.1 million contained oz as of December 31, 2016), Chapada is primarily a copper mine with copper principally found as chalcopyrite. Accordingly, the processing flowsheet at Chapada is comparable to that of other copper mines with a SAG and Ball mill each partnered with a cyclopack, followed by a flotation circuit. While the overall design is conventional, the mineralogy at Chapada results in significant circulating loads both in the grinding and flotation circuits. This does introduce certain complexities for operating strategies and practices, but, importantly, favourable recoveries and elevated processing rates can be maintained, albeit they need to be closely managed. Plant automation helps in this regard."

Jan 1, 2018

By W. T. Gotheridge

The principal sources of coal-dust underground are, of course, coal, and the working of coal. Coal-dust is most dangerous when it is in the finest state of division. This class of dust is found mostly on the roads, being blown or shaken off the loaded trams in transit, or carried in suspension by air currents. The air current passing from the working faces may also carry dust in suspension into the return airway, and the air current from the surface may carry dust from the shakerscreens into the intake airways. The mosl dangerous dust we have to contend with is, (a) that which is most finely divided, and (b) that which contains the most volatile matter, including the inflammable occluded gases, and also oxygen absorbed from the air. According to experiments, coal-dust in a fine and dry state would intensify an explosion, in air free from fire-damp carrying in excess of 3 ozs. of fine dust or 6 ozs. of coarse dust per cubic yard. The volatile matter in the dust must be between 12 and 31 per cent. in the ash-free coal, the latter percentage giving the highest flame velocity. It is vary difficult to propagate flame where coal-dust contains a large percentage of stone-dust, (say 50 per cent.). Shale-dust or other incombustible dust containing no volatile hydro-carbons or carbonaceous matter will prevent the extension of an explosion if mixed with coal-dust in proportion of say 70 per cent., and if the dust is finely divided and dry.

Jan 1, 1924

By Jonathan Duncan, Tim Burgess, William Kendall, Jens Lange

"Steel wire mesh is the accepted standard for roof and rib skin control at most coal mines in the United States. Wire mesh is delivered to the mine in bundles that are heavy and awkward to handle. The large size, stiffness, and weight of the wire mesh can present a safety hazard in transporting underground and storing on the roof bolter. Installing wire mesh on the roof and ribs with the roof bolter can be a challenge as well.Synthetic mesh is lighter than wire mesh and can be folded and rolled into a safe, manageable size. A single synthetic mesh roll large enough to cover the roof and ribs in a deep cut can be safely handled by two men. The roof bolter is designed to carry and dispense the roll as it advances and installs primary roof support, resulting in a single pass roof and rib ground control solution. This paper focuses on the design and implementation of the roof bolter synthetic mesh handling system developed by J. H. Fletcher & Co., Huesker, Inc., and Oxbow Mining.INTRODUCTIONRoof and rib skin control in some coal mines has been an issue since mining first began. Roof and rib skin problems vary from mine to mine. The type of roof rock material exposed after mining; the mine atmosphere; and stresses from depth of cover, over mining, and/or undermining are some of the variables that can contribute to roof skin problems from mine to mine.Potential roof and rib skin problems can be time dependent as well. Some mines have roof skin rock, sometimes called draw rock, that falls when drilling the hole for the roof bolt as the initial roof support is installed. Some roof skins are more stable but can fail over time. The failure of roof skin can even be between properly installed roof bolts with roof plates (Figure 1).Mines have most commonly used a wire mesh that comes in individual panels anywhere from 5 ft x 5 ft (1.5 m x 1.5 m) all the way up to 5 ft x 16 ft (1.5 m x 4.9 m) in size. They are typically constructed of 8- or 9-gauge wire welded on a 4 in (102 mm) square pattern. A 5 ft x 16 ft (1.5 m x 4.9 m) panel weighs approximately 35 lbs (16 kg). These steel wire mesh panels can make it a difficult and sometimes dangerous task to deliver them from the surface to the roof bolter and then store on the machine. Manipulating the mesh panels from the storage area on the machine to the final installation position on the roof or rib can also be a daunting task (Figure 2)."

Jan 1, 2010

By Donald W. Gentry

Introduction The mining industry is perhaps best characterized by the numerous and abnormally high risks associated with the business of mining and by its most basic assets - ore deposits, people and technology. At the most fundamental level, it is the quality and effective utilization of these basic assets that determine a mining company's ability to compete efficiently in the international market place. The gold industry has received much attention in recent years and especially in recent months, for good reason. This commodity serves as an excellent platform for the subsequent discussion of these three basic assets and their role in mining's future. Facets of the gold industry The fate of this noble metal in recent times illustrates some of the various risks associated with the mining industry and the importance of high-quality assets, whether they be ore deposits, people or technologies. The following comments pertaining to the gold industry help place proper focus on subsequent discussions. All monetary amounts given are in US dollars. Throughout 1997, falling gold prices broke record after record: first hitting three-year lows, then a 12-year low in July and finally an 18-year low at year's end. From Jan. 1 through Dec. 31, 1997, the price of gold fell by more than $2.57/g ($80/oz), or some 22%. The decline in gold-mining profitability and stock prices was even more dramatic. At the beginning of 1997, the 20 largest gold producers in North America had a market capitalization of approximately $44.5 billion. At year's end, this market cap had fallen to $26.2 billion, a reduction of 41%. The total market cap of all the world's gold companies fell from $71 billion to $46 billion, a 35% drop (Serwer, 1998). Analyses suggest that, at a spot gold price of $9.65/g ($300/oz), only one, or possibly two, North American gold-producing companies can make money when break-even or "total costs of production" are considered. While strong hedge positions mitigate this situation in the short term, clearly, this is an industry in desperate straits. For example, write-downs for North American producers in 1997 were approximately $2.5 billion. Speculative short positions in 1997 were near historical record highs and generally exceeded long positions by factors of 9:1 or 10:1. Much of this is driven by some US commercial banks, hedge fund managers and commodity speculators who can significantly move gold prices sharply over short periods of time by selling gold they do not own in the expectation they can buy it back at a lower price before they have to deliver. These signifcant short positions are likely to continue as long as central banks are willing to sell or loan gold to financial institutions that in turn make the gold available to speculators who hope to capitalize on price fluctuations. The Far East accounts for approximately 26% of the annual demand for gold. Including India, the region accounts for 43% of total demand. More than 85% of the physical demand for gold is for investment jewelry in Asia and the Middle East. This demand is extraordinarily price sensitive. The fairly recent turmoil in Asian markets and economies, combined with currency devaluations throughout the region, have made gold more expensive (30% to 50% in local currencies) for those peoples most likely to treat gold as a safe investment haven. Higher interest rates also have reduced the amount of money they have to spend on consumer goods such as jewelry. All of these recent Asian events are deflationary in nature. Deflation, if coincident with rising unemployment, could result in significant dishoarding of gold. There is one key fact to remember when analyzing

Jan 1, 1999