Search Documents

By N. E. Izatt

Molecular recognition technology (MRT) has a wide range of applications in the hydrometallurgical and chemical processing industries for the selective removal of iron as well as various other impurities from a variety of streams, including aqueous solutions through a wide pH range, as well as organic solutions. An example of a commercial application is provided for the removal of iron from an aluminum chlorohydrate stream. In this example, MRT has a selectivity for iron relative to aluminum which is significantly higher than that of ion exchange resins. A discussion of MRT capabilities for other impurities and streams is also provided.

Jan 1, 2006

By L. B. Smith

Introduction The property of Wright-Hargreaves Mines, Limited is situated at the northeastern end of Kirkland lake, Ontario. It lies immediately east of the Lake Shore mine, and about in the centre of the Kirkland Lake camp. The district is served by the Swastika-Rouyn branch of the Temiskaming & Northern Ontario railway, the town of Kirkland Lake being four miles northeast of Swastika, which is 63 miles north of Cobalt and 392 miles north of Toronto. The mine is developed by three shafts and has more than twenty-eight miles of underground workings. There are two main producing veins, which lie in a porphyry boss 1,350 feet wide. Milling started in May, 1921, and to-date (January, 1933) the mine has produced gold to the value of $21,770,183. Present production is at the rate of 800 tons of ore per day. For a description of the geology, reference may be made to the report by E. W. Todd on the Kirkland Lake Gold Area (1). Structure and Ore Deposits The two major productive veins on the Wright-Hargreaves property are known as the North vein and the South vein. In the vicinity of the shafts these veins are approximately 550 feet apart. A third vein, known as the Inclined vein, has been worked from its junction with the South vein at the 2,000-foot level to its intersection with the North vein at the 800-foot level. This inclined vein has to date been found only in the area east of the eastern major north-south fault. The main North vein and South vein have a general vertical dip, although local rolls and post-ore faults throw certain sections out of line. From the surface to 3,900 feet, the North vein is displaced south less than 200 feet, and the South vein at the same horizon is almost perpendicularly beneath the surface showings.

Jan 1, 1934

By F. Chevarin

The reaction of O2 with the carbon anode is considered as the main parasitic chemical reaction affecting Hall-Heroult process anodes. The current study aims at investigating the influence of the microstructure of baked anode on its overconsumption. Samples were removed from different positions of an industrial anode. Density, porosity, Lc and BET specific surface area were measured. The anode reactivity was evaluated based on the weight losses for the samples resulting from the reaction of anode with air at 550°C after 7h. The essential parameters determined to control the air reactivity are closed porosity, Lc and pores with a pore entrance radius of 1.5, 8.5 and 12 p.m. The knowledge of effects of these parameters allows better understanding of the reactivity of anodes and consequently reduction of their overconsumption in electrolysis bath.

Jan 1, 2011

By E. Gaucher, M. St-Amant

"Among the electromagnetic surveys performed by SOQUEM in the last three years, a certain number of the more instructive cases have been chosen to illustrate the theory of electromagnetism by field examples of: (a) The depth penetration of the TURAM as compared to the SLINGRAM (Ronka) method. (b) The limitations of the TURAM as compared to the SLINGRAM method when a conductor dips the wrong way, or when it is small in size. (c) The expression of a shallow-dipping conductor in a SLINGRAM survey. (d) The effect on the SLINGRAM survey of deep ditches or reef structures.(e) A comparison between the CRONE and the SLING-RAM method in the Abitibi clay belt, by means of field and model studies, indicating a usually better signal-to-noise ratio for the SLINGRAM method. From the above and from other experiments, different electromagnetic methods are now being used by SOQUEM, depending on field conditions."

Jan 1, 1970

By Fidelis T. Suorineni

Rapid drifting enables quicker access to orebodies, higher productivity rates and a resultant reduction in activity costs. Increased advance rates, by examination of the key components (face preparation and drilling, hole loading and blasting, scaling, mucking and support installation) in the development cycle, and optimizing these processes is a high priority for research in the Canadian mining industry. Support installation time alone is typically 36 to 46% of the total development cycle time. A reduction in support installation time or techniques and alternative scaling strategies could result in significant gains in drift development advance rates. Support Staging and hydroscaling within the drift cycle could offer alternative drift development sequences that could reduce the overall cycle time. MIRARCO?s research into the support and hydroscaling processes for rapid drift development also suggests that there are many other factors (e.g. mine ventilation services) that have a significant impact on the rate of advance. These factors should be considered to promote and manage safe and rapid drift development. Constraints to the rapid drift development processes can only be overcome by sound construction management practices. In other words, the goals of rapid drifting can be achieved by the implementation of contractor-type construction management. This paper examines various constraints and processes affecting rapid drift development and draws attention to other factors affecting safe rapid drift development.

Apr 1, 2005

By Angus D. Campbell

Introduction Gowganda forms part of the general Cobalt area. Its rocks and ores are very similar to those of the other parts of the area. While its total production of silver is only 4 per cent of that of the famous Cobalt silver camp, its 1928 shipments contained 42 1/2 per cent as much silver as those of Cobalt for that year. During twenty years of production, 15,000,000 ounces of silver have been shipped from Gowganda. Of this, over 8,000,000 ounces have been shipped in the past five years. The area has thus made for several years a substantial contribution to the wealth of Ontario. Its future depends to a great extent on the priee of silver, which is now, unfortunately, at a record low price. This paper is a discussion of how the Gowganda ore-shoots occur, together with some notes on the milling of the ores at the Castle-Trethewey Mines. The first part is written in the hope of stimulating further study of the silver occurrences, which may lead to further discoveries. The second part, besides being a matter of record, may be of some use to operators of small mills. The drawings in the several Figures illustrating the text are by W. D. Stroud, mine superintendent of the Castle-Trethewey Mines, the benefit of whose opinions I have had in compiling these notes.

Jan 1, 1930

By W. Swidzinski

"Zelazny Most" post-flotation copper mine tailings pond is the only place to of storeing wastes for KGHM POLSKA MI EDZ S.A. The flotation tailings is are the main waste stream in copper mining in Poland. Sufficient storage capacity for tailings is crucial for , thus uninterrupted production of copper is crucially related to the possibility of storing wastes in the pond. The pond covers a Its over 14 km2 arca, almost 50 m high dams making this dame this construction one of the largest in the world. The risk assessment of potential damage due to un stable ility loss of dams or environmental contamination, as well as safely constructing damsincrease of dams within the design criteriaprocess, require quick access to a large amount of the monitoring data , which in vast amount have to be monitored, that needs to be analyzed and processed and reported, every day. This In the paper describes the numerical information system "SyZeM" , used for designated to the "Zelazny Most" pond, baseding on the Oracle database and Geographical Information System , to manage the graphical and descriptive data in coherent way., is presented. The main structure of the system, as well as the methodology of storing, processing and reporting the geological, geotechnical, hydrogeological, geophysical, chemical and survey data are shown. The aspects of Optimizing optimal and risk mitigation and safe management of copper wastes and risk mitigation with the help of "SyZeM" are discussed.

Jan 1, 2007

By G. B. Harris

A new process for the recovery of copper and associated base metals from a polymetallic massive sulphide ore is described. The massive sulphide contains copper and especially nickel sulphide in a mineralogical form which negates both good recovery and high grades in concentrates using conventional flotation methods. Flotation concentrate processing and smelting from this ore is therefore probably not an economically viable option. Utilising the properties of high concentration chloride brines, a flow sheet has been developed and tested whereby the recovery of all of the metals and some of the power requirements for the plant itself can be derived from the ore. The new process overcomes the less-amenable-to-flotation ore characteristics, and provides the opportunity of economic processing in remote locations where the dependency on fossil fuels is both a logistical and an economic concern. The Ferguson Lake deposit of Starfield Resources in Nunavut, Canada, is the subject of this paper, which focuses on the leaching and copper recovery unit operations of the proposed flow sheet.

Jan 1, 2007

By A. D. Walters

"IntroductionScreens are used in coal preparation plants for four basic functions, namely:I. Scalping off large size run-of-mine coal for initial size reduction;2. Sizing of coal treatment in different process streams;3. Removal of magnetite (dense medium) from clean coal and refuse;4. Dewatering.Canadian coal preparation plants use screens extensively in the above functions. Even plants where no beneficiation takes place, screening and crushing are carried out in the size reduction process.Description of Process UnitsThe type of screen used in coal preparation plants generally falls into the following categories:Fixed Screens and Grizzlies (for large coal)Often a simple rugged construction, either set horizontally above a bin or inclined with the coal flow.Fixed Sieves (for fine coal)They are used for dewatering and/ or size separation of slurried coal or discard. The sieve bend, the Vor-Siv, the Wilmot riffle and the cross flow screen fall into this category. The most commonly used in coal preparation plants is the sieve bend, Figure 1. Coal slurry is fed tangentially onto a fixed curve wedge wire screen deck. The solids are separated at a predetermined particle size, delivering a partially dewatered overproduct and a dilute underflow. The coal slurry is initially delivered to the sieve bend via a feed box. A series of baffles spreads the feed evenly across the width of the deck. The slurry drops from the last baffle, passes through the feed spout and is fed tangentially to the screen. It is important that the feed should contact the surface immediately at the front end of the sieve bend. It is possible to lose as much as 250Jo of screening area with a poorly fitted screen box.The full stream of coal slurry flowing over the sieve bend decreases in depth, in increments of approximately •;4 the slot width each time it passes a slot. Sieve bends make a size separation at 112 to 2h the slot width. This feature virtually eliminates blinding of the screen surface. Slot sizes are normally quoted in millimetres, available standard slot sizes are from 2 mm to 0.125 mm. The sieve bend is also widely used in coal preparation for preliminary dewatering."

Jan 1, 1989

By D. Monder

Fuel cells are promising sources of electrical energy because of their exceptionally high efficiencies and low environmental emissions. Solid oxide fuel cells (SOFC) are high temperature, ceramic electrolyte cells, which unlike most other fuel cells, can work with a variety of fuels besides pure hydrogen, including hydrocarbons and hydrogen sulfide. In this presentation I present the models we have built for a single H2S fuelled SOFC. The goal is to model the electrochemical reaction coupled with mass transfer, fluid flow and current/voltage distribution in an yttria stabilized zirconia electrolyte fuel cell assembly operated between 750 and 850 °C. Two models of the above SOFC are discussed in this work, 1) an algebraic model derived by integrating a one-dimensional model along the thickness of the cell, and 2) a two-dimensional finite element axi-symmetric model. Important physical and kinetic parameters in the 1-D model are fitted using experimental data sets at three different temperatures and reasonable fits are obtained for the data sets at 800 °C and 850 °C. However, the third data set at 750 °C does not give a good fit using this model. We need to apply the curve-fitting to more data sets to investigate it further. The main conclusion that can be drawn from the present study is that the ohmic resistance of the cell is very high. Contact resistances are believed to be the reason behind this although there could be contributions from resistive interphases. The 2-D model also gives reasonable fits to data sets. One of the publications by the laboratory group doing the experimental work in our department presented very interesting data that shows the cell performance being a strong function of fuel flow-rate. We want to model this behaviour and will have to depend on the 2-D model as the 1-D model does not have flow-rates as parameters.

Jan 1, 2005

By Meifeng Zhi, Yuqing Niu, Xixin Chang, Fengqi Zhao, Weimin Qiu, Hao Wang, Zhenqian Wen, Zujun Shu

An applicable Eluex process was developed for acid in-situ leaching (ISL) uranium mine in Bayanwula. In this process, uranium was adsorbed with strong base anion resin from the pregnant solution, then the loaded resin was eluted by sulfuric acid. After D2EHPA extraction, the concentrated eluate was enriched, and the loaded organic phase was stripped by sodium carbonate. The yellow cake was obtained by sodium hydroxide precipitation at last. The uranium concentration in the loaded strip solution was 52.8 g/L. Parameters of the process were determined, and the impact of the Eluex process in underground leaching was also investigated. In industrial design, 95% of raffinate went back to elution and 5% back to in-situ leaching. No significant effect on uranium leaching or resin adsorption was found.

Jan 1, 2020

By Magnus Evertsson, Johannes Quist

HPGRs have since introduced in the 1980s (Kellerwessel, 1993; Schönert, 1988), now become integral comminution units at several minerals processing plants around the world. Even though a lot of the initial issues concerning performance, availability and wear have been addressed and solved there are still phenomena and aspects which can be improved and understood further. Schönert and Sander (2002) presented experimental results and a mechanistic model including the internal force dynamics between the rollers and the compacted bed. They derived expressions for the pressure distribution involving most of the influencing terms and effects. However, in order to solve the differential equations several of the terms vanish by assumptions. The Schönert and Sander model reflects the experimental data in many aspects but the predicted shear force distinctly deviates from the experimental results at the angular position of the peak pressure level. This finding suggests that the particle to particle interaction and breakage process in the different zones seen in Figure 1 are complex and difficult to model using analytical models. A numerical modelling approach using DEM does not require the same amount of assumptions and simplifications of boundary conditions. Hence such modelling may provide further knowledge and vital understanding. In this paper the breakage process is simulated in order to investigate the shear slip behaviour and how it relates to different operating variables. A laboratory scale HPGR corresponding to the experimental setup used by Schönert (2002) have been modelled in EDEM (DEM-Solutions). The bonded particle model (BPM) is used for modelling quartz particles (Potyondy, 2004). The breakage model strength parameters are calibrated against interparticle breakage experiments in an Instron 400RD compression device. The contact model parameters are calibrated using calibration methods developed by Quist (2015). The floating roller dynamics are modelled using a spring-damper system. Results present insights regarding the interparticle slip behaviour as well as the frictional tangential force distribution on the rollers. The simulated roller pressure distribution shows good correspondence with previously reported findings in the literature.

Jan 1, 2016

By O. Hungr, V. Gischig, G. Preisig

Deep-seated landslides are characterized by slow time-dependent movements induced by constant gravitational creep, and periods of acceleration associated with stress changes within the rock and the preexisting fracture network. Natural stress changes are typically caused by seasonal variations in surface temperatures and groundwater pressures, but also by rare and more violent events such as earthquakes. These processes are responsible for cyclic loading and unloading that leads to rock mass damage, fatigue and progressive failure with time, and may explain sudden, unexpected rock slope acceleration phases. In this work, we present a set of distinct-element models to investigate and compare the role of hydromechanical fatigue and seismic fatigue in the history of a deep-seated landslide. Hydromechanical fatigue arises from the fluctuation of pore pressure in fractures accompanying periods of significant groundwater recharge. In alpine areas, there are usually one or two cycles per year associated with snow melt and intense rainfall periods. In the presence of a deep confined aquifer within the rock slope, the amplitude of pressure fluctuations may reach values of 0.25-0.5 MPa. Hydromechanical models considering such pressure changes are able to reproduce observed slope accelerations-decelerations phases. Substantial accelerations may occur even in the absence of a cycle of exceptional amplitude, depending on the current state of fatigue. At a given time, one or more fractures may be critically-stressed, and a small change in applied stress is enough to cause local failure and induce a crisis of enhanced slope acceleration. This is augmented if the rock slope contains planes of weakness associated with its tectonic history, glacial debuttressing, etc. The corresponding behaviour is analogous to laboratory experiments on rock and metal fatigue. Similar fatigue effects have also been proposed for repeated earthquake events in seismically active regions. Unlike hydromechanical stress changes that occur in a more localized portion of the rock slope, those induced by passing seismic waves involve the entire rock mass. Moreover, the frequency and amplitude of stress perturbations due to earthquakes are different than those induced by pore pressure variations, although both likely contribute in combination to the degradation and progressive failure of large deep-seated landslides when both are present. The results presented illustrate that: (1) assessment of slope stability near critical infrastructure (e.g., hydroelectric reservoirs) should not only consider static stability, but also failure mechanisms related to fatigue that evolve over time and may result in an apparently stable slope progressing towards a critical state due to relatively small but repetitive stress changes; and that (2) characterization of fatigue processes affecting a deep-seated landslide requires multiparametric continuous monitoring at different observation points.

Jan 1, 2015

By Robert B. Parsons

"As the 1981 annual reports of Canadian mining companies one by one see the light of day, it becomes clear that softer metal prices and rising costs are the main problems which beset the industry today. These problems are certainly not lightened by that familiar monster lurking in the shadows-taxation! Recent taxation trends in Canada, and the existing tax regimes for the mining industry, continue to be a major bugaboo.This examination by ""Tax Notes"" of the impact of current taxation trends on the mining industry is based on a speech delivered recently by Robert D. Brown, senior tax partner of Price Waterhouse, Canada, to the annual meeting of the American Institute of Mining, Metallurgical and Petroleum Engineers in Dallas.IntroductionThe purpose of this paper is to tell a story-and it is a story with a moral. The first thing to recognize is that, with depressed metal prices and weakening western economies, high taxes, in and of themselves, are not really the cause of the Canadian mining industry's present doldrums. However, the character and level of mining taxes in Canada has had a profound influence on the development of the industry over the past decade, and the expectations of what the future holds for mining men in Canada will equally play an important role in the future development of the Canadian industry. Our tax system has, in the past, served as a negative and destabilizing influence in the mining industry: it has contributed to a major short-fall in investment commitments and hence in the contribution which the mining industry can make to the Canadian economy, and the adverse effect on the industry of previous high marginal tax rates was made far worse by the confusing, contradictory and perverse nature of the tax system itself."

Jan 1, 1982

By V. Barranco, K. Yliniemi, A. Hubin, B. P. Wilson, D. Janas, M. Lundström, P. Hannula

Typical copper electrorefining electrolyte contains tens of grams of copper, some nickel and a wide variety of impurities. Some of these impurities comprise trace amounts of dissolved precious metals like Ag, Pd and Pt that currently are not fully exploited. This study presents an electrochemical method to recover precious metals via a combined electrodeposition-redox replacement (EDRR) process, where energy is used only to deposit copper during the ED-step, while the RR-step relies on the spontaneous replacement of copper by the precious metals (i.e. cementation). In order to conduct the recovery successfully, process parameters such as deposition potential (EDE), deposition time (tDE), redox replacement time (tRR) and the number of cycles (n) was adjusted. Investigations performed in synthetic electrolyte (40 g/L Cu, Ag = 10 ppm) proved the possibility to recover a high purity silver. Short deposition times (tDE) were found to result in small Cu particles that provided a suitably high surface area for silver cementation. In addition, experiments performed in real industrial electrolytes containing 44 g/L Cu and 54 ppb Ag (Boliden Harjavalta, Pori), demonstrated that EDRR could attain Ag recoveries of between 46–67% in an energy efficient, additive-free manner. INTRODUCTION The raw materials used in the state-of-art primary and secondary copper smelters contain mainly base metals, but also notable amounts of Ag, Pt and other precious metals. These valuable metals distribute mostly into the copper matte during the pyrometallurgical treatment (Tirronen et al., 2017) and end up into the cast anodes. During the electrorefining stage, metals more noble than copper such as gold and platinum, are not dissolved but enrich into the anode slimes. In contrast, silver may dissolve slightly and thus, minor chloride addition is used to retain silver in the slime as sparingly soluble AgCl. Moreover, other metals less noble than copper may also dissolve, such as nickel. Therefore the electrolytes used in electrorefining typically contain substantial amounts of copper, nickel and even arsenic as well as minor metals such as antimony and bismuth. In the Boliden electrorefinery these were reported to be in the magnitude of 51.2– 60.4 g/L of Cu, 10.9–15.8 g/L Ni, 7.2–15.9 As, 0.2–0.4 Sb and 0.1–0.4 Bi with an associated sulfuric acid concentration of 139–155 g/L (Lehtiniemi et al., 2018). Copper is the most noble of the dominating base metals in the electrolyte and is thus deposited on the cathode as 99.99% purity LME-A grade. Anode slimes are collected and subjected to precious metals treatment e.g. via pressure leaching—selenium recovery— Doré smelting—Ag refining—Au/Pt/Pd leaching and reduction process (Ludvigsson & Larsson, 2003). The Pori refinery, operating in Finland since 1941, not only produces 133 000 t Cu cathode and 2300 t nickel sulphate annually but also 66 t silver, 4.6 t gold and palladium and platinum (in year 2017).

Jan 1, 2019

By J. L. Llanca

The New Level Mine project (NLMP), the planned underground expansion of the El Teniente mine in Rancagua, Chile, is expected to reach a daily extraction rate of 137 to 180 ktpd upon achieving full capacity. Production is planned to start in the year 2017 and the current plan is to meet that target through two development phases, from the year 2012 to 2014 and from the year 2015 to 2017. To achieve the 2012 to 2014 underground development schedule, the ventilation requirements have been estimated in the range of 189 m3/s (400 kcfm), and cannot be made available without significant modifications to the current system of El Teniente. As a result, a certain number of alternatives were explored to find a solution to this shortfall, for example, adding raises to generate parallel airways and installing fans to reinforce the current ventilation system. From the alternatives studied, the installation of a second main fan (system) in parallel to an existing one was identified as the best solution, and selected for implementation, however the location was not ideal and there were concerns as to the operation of both fans once the second fan was installed. This paper presents the study used to estimate the operational points of both the current and the new fan, and to justify the parallel installation of the additional main fan. An additional computational fluid dynamics study was undertaken to validate the operational point, given the particular geometry of the fan?s location and placement, to guarantee a stable operation of the fans. Finally, the protocols arising out of this work for starting the fans, and operating them in parallel to avoid generating a stall condition and damaging the investment are discussed.

Aug 1, 2013

By J. Lapointe, S. Leger, D. Proulx

"Une méthode non-électrolytique est utilisée pour plaquer au cuivre la fibre d'amiante chrysotite. En variant les paramètres de placage du bain, on détermine les conditions optimales du taux de deposition du cuivre . Une analyse par diffraction aux rayons-X permet une comp araison relative des résultats de placage et de précipitation d'oxyde cuivreux dans Ie bain. Le traitement de placage a pour but d'assurer une adhésion suffisante de la fibre dans une matrice métallique Iors de la fabrication éventuelle de materiaux composites.IntroductionCette communication se veut un compte-rendu de nos travaux sur Ie placage au cuivre de la fibre d'amiante chrysotile, en vue de I'incorporer éventuellernent dans une matrice métallique. La fibre d'amiante est constituée de fib rilles élementaires d'un diamètre d'environ 0.02 um qui ont une résistance en tension de I'ordre de celie de la fibre de verre ou de carbone(1). Pour être efficace, la fibre de renf'ort d'un matériau composite doit d'une part, avo ir des propriétés mécaniques intrinsèques élevées, et d'autre part, adhérer solidement â la matrice pour que Ie transfert de charge s'effectue sans qu'il y ait décohésion entre les composantes du matériau.La fibre d'amiante étant naturellement soyeuse, il faut la traiter superficiellement pour que l'adhésion avec la matrice soit suffisante. Ainsi, on recouvre la fibre de phénol-formaldéhyde(2) ou de silane(3) lorsqu'elle est employée avec une matrice polymere. Dans Ie cas d'une matrice métallique, ces dépôts organiques ne peuvent resister aux températures de mise en oeuvre, d'où l'intérêt de plaquer les fibres par un dépôt métallique.Dans cette étude, nous rapportons les résultats relatifs à la methode utilisée pour plaquer au cuivre la fibre d'amiante chrysotile. Une analyse par diffraction aux rayons-X permet de comparer les différentes conditions de placage non-électrolytique."

Jan 1, 1985

By Stanley W. Holmes

"The discovery of extensive uranium mineralization on the Pronto property in April 1953 initiated a program of staking, exploration, and development unparalleled in Canadian mining history. Within twelve months of the discovery hole, sufficient ore had been blocked out to merit a 55-million-dollar contract with Eldorado Mining & Refining Co. On October 15, 1955, two years and four months after discovery, Pronto went into production with a mill rated at 1,000 to 1,500 tons per day. The property is on the southern edge of the Algoma uranium district, 10 miles east of the town of Blind River and close to the Canadian Pacific Railway and Highway 17. Docking facilities for Great Lakes steamers are avail-able at Spragge, 4 miles to the east.The data and conclusions presented in this paper are based on field studies, drill hole information, and underground development. The ideas of ore genesis are those of the writer, and will undoubtedly be modified as more detailed studies and research are carried out. Because of security regulations, information pertaining to grade and tonnage will not be discussed.GeologyThe general geology of the Algoma basin has been outlined in a pre-ceding paper (Joubin and James). The description below is concerned essentially with the rocks most closely associated with the Pronto deposit. They may be grouped in three structural and lithological units: (1) the pre-Huronian basement, (2) the Mississagi formation, the lowest member of the Huronian sediments lying unconformably on the basement, and (3) a series of basic intrusives cutting (I) and (2). Most of the uranium mineralization occurs in a quartz-pebble conglomerate forming the basal member of the Mississagi quartzite."

Jan 1, 1949

By P. M. STILES

Acquired in 1957, the limestone quarry of Ideal Basic Industries on Texada Island north of Vancouver has become a major supplier of high purity limestone and construction stone. Crushed limestone products are shipped by barge to various destinations along the B.C. and northern U.S. coasts.

Jan 1, 1984

By Mark Kennedy, Allan MacRae, Cameron Hams

New technology projects, particularly those involving first-of-a-kind metallurgical facilities, have a poor track record of achieving their overall financial targets, as they incorporate technological risks in addition to normal project risks. Traditional project management tools focus on risk from concept development through implementation, but typically fail to address the additional risks associated with a new technology project including slow start-up, slow ramp-up, and failure to achieve design performance (quality or throughput). These additional risks affect future cash flows produced by the project and hence its value, typically measured as net present value (NPV) or internal rate of return (IRR). Common accounting practice is to reduce the present value of future cash flows by applying a chosen discount rate, often reflecting the corporation's cost of capital. This discount rate does not contain an allowance for technological risk, which is often underestimated or misunderstood by both the financial and engineering project managers. This paper will focus on the topic of project risk and new technology, and how these play a role in the probability of achieving the predicted future cash flows. By properly addressing technological risk in the form of risk-weighted returns, marginal projects can be prevented from proceeding, while sound projects can be given the additional time and resources required to achieve the optimal level of front-end-loading (the level which returns the maximum risk-weighted net present value). A simple set of mathematical tools should enable engineers and financial professionals to establish a common level of understanding, thereby leading to a more accurate assessment whether a new technology project is ready to pass through its next level of approvals.

Jan 1, 2011