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By C. Gerow

THIS paper is entitled "Some" problems, rather than "The" problems, met in selling coal, since the problems to be met in selling any commodity have to deal with an infinite number of circumstances and conditions. These are believed to be more varied in the case of coal than probably any other commodity. This is due, perhaps, to the fact that coal has been one of the basic materials in the guiding of industrial and national achievement for the past two hundred years. During this time its use has developed from a most haphazard one to uses involving all modern scientific methods, which, rather than simplifying matters as regards the marketing of coal, have added many fresh problems, and these vary according to the particular market served. Since the concern of this paper is primarily the selling of Nova Scotia coal, it is proposed to deal chiefly with some of the specific conditions met in the markets presently served by this coal. For the purpose of discussion, these markets may be considered as divided into three main groups, namely, the Maritime market, the Quebec market, and the Ontario market. THE MARITIME MARKET First of all, let us consider the Maritime market. This is a market which has been regularly served by Nova Scotia coal since coal mining became the first industry in Cape Breton, slightly over one hundred years ago. Conditions as applying to the use of coal have naturally tended to adjust themselves to the characteristics of the coal most readily available, and, therefore, marketing problems are fewer in the Maritimes than in districts where many coals of varied characteristics are offered. Up to recent years, the problems involved were chiefly those of providing satisfactory service insofar as de-liveries were concerned. However, with the speeding-up of manufacturing processes and the necessity of reducing costs to a minimum, users of coal have become interested in obtaining coal that will give the most economical service. It is, therefore, now of importance that the salesman should have full knowledge of the particular conditions applicable to each customer's use in order to deal to the best advantage.

Jan 1, 1936

To create a successful growth oriented diamond company that succeeds in the practical business of mining and selling rough diamonds, and which pursues an aggressive exploration strategy to seek and develop worldclass diamond mining opportunities in a market that has become increasingly under-supplied.

May 1, 2008

By W. E. Segsworth

Introduction By far the largest part of the money raised for mining is raised by honest and legitimate means; but a not inconsiderable amount is raised by fraudulent sales methods. It will be conceded without argument that the greatest menace to the mining business is the fraudulent promoter. The sale of worthless mining stocks to the public by high-pressure. salesmen, house to house canvassers, telephone campaigns, fraudulent use of the mails, fraudulent statements, and reloading, has seriously prejudiced the public against even legitimate mining. A very small percentage of the funds raised by such fraudulent means is ever spent on the property, but instead is absorbed by the promoter in illegitimate' profits, enormous commissions, high office rents, and other expenditures, and is just so much subtracted from the fund which the legitimate developer needs to bring new mines to the point of production. The mining fraternity has been at fault in that, while they recognized this situation, they made no adequate attempt to rectify it. They knew that these fraudulent practises were conducted by parasites who attached themselves to the mining business in boom times and claimed to be part and parcel of it, but who were merely professional salesmen and promoters who, when there was not a mining boom, were selling sky-line real-estate, worthless oil stocks, or fraudulent securities which happened to be popular with the public. While mining people had this distinction well in mind, the public did not differentiate between the crooked promoter temporarily selling fraudulent mining stock and the honest promoter who made mining finance his life work; and we did little to make this distinction clear to the public or to sweep these money grabbers out of our house. The historic boom of 1927-8 and '29 brought with it the usual crop of crooked mining promoters, and the scandals resulting from their operations forced the Governments into the enactment of laws to attempt to protect the gullible public against the operations of these meanest of thieves and to appease public clamour.

Jan 1, 1934

By Côme Carbonneau

The ten -year case history of La Société Québécoise d'Exploration Minière (SOQUEM) is reviewed under the headings of the company's raison d'être, objectives, policies, structure and final goal. A brief analysis of its past operations is presented: aborted efforts, findings and developments. A projection is made of the future earnings, in terms of estimated present value, of its three main discoveries - Louvem , Niobec and Selim.

Jan 1, 1978

By R. D. Brown

"""A matter of serious concern to the mining industry in British Columbia""; this comment reflects the attitude of the Mining Association of British Columbia toward the proposed new B.C. Mineral Royalties Act. The proposed legislation, introduced by the provincial government in February and now being debated by the legislature, combines a basic 5% royalty on the selling price, less approved p1ocessing and transpo1•tation costs, of minerals produced in B.C. with an ""excess"" royalty of 50% of any price increases over a predetetmined base. Government estimates project annual revenues of $20 million from the new royalty structure. The accuracy of these figures has been contested by the mining industry. Based on current world prices for copper the industry estimates that the provincial revenues from this mineral alone may run as high as $140 million in 1974 and $150 million in 1975. The Mining Association has warned that the new royalties “threaten to become confiscatory""."

Jan 1, 1974

"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

By John D. Galloway

Mining is one of the important primary industries of Canada, with a gross production in 1927 estimated at $241,773,000- the highest in the history of the country-and an impressive dividend record. It is quite apparent, therefore, that mining is a business worthy of the careful attention of the people of Canada. Furthermore, with a vast undeveloped territory more or less mineralized, it is highly probable that our mining industry will continue to expand indefinitely, with a consequent increase in production and in the amounts of the yearly profits distributed. In recent years, the public has taken a larger interest than formerly in mining-an interest, moreover, that is not academic, but primarily from the viewpoint of profits. It is quite evident that mining is a profitable business, at least to some, and the average man on the street, hearing of these profits, is attracted thereto. I have no doubt that many of you have .read in promotion prospectuses, with figures to prove it, that mining is the most conservative, the safest, and the highest-yielding business in the world. Now, a lot of this information is best judged by the old saying that "While figures don't lie, liars figure". At the same time, mining, properly conducted, is a profitable business, even though speculative, and undoubtedly much profit will come from Canadian mines in the future. In this paper my conclusions regarding mining investments are based largely on British Columbia experience, together with some slight knowledge of mining conditions in the other Provinces. It is considered, however, that the inferences drawn are applicable to mining throughout Canada.

Jan 1, 1928

By J. Mackintosh Bell

External trade strongly influences the well being of all nations. In the modern economic mechanism, no country is so well endowed that it has not to import commodities from others and to export its products in turn to make good its deficiencies, to rectify or improve its financial structure. From the standpoint of international commerce, Canada is strategically well placed. On the south she is bounded by the richest country in the world. On the east she faces the Atlantic, on the west the Pacific. On both coasts there are fine harbours to which lead great lines of railway that span the continent. Canada is now fifth among the exporting nations of the world. For disposal abroad, she has enormous quantities of primary commodities and substantial amounts of manufactured goods as well. But she is far from being self-sustaining. She is unusually dependent on foreign trade, not only because of the commodities she has to sell but because of the lack of many essential articles she does not or cannot produce. To Canada, external commerce is vastly more important than internal trade. The wealth of nations is decided by their ability to produce more than they need, to sell more than they buy, and to build up favourable balances resulting from trade or services. With few countries, however, are returns perennially satisfactory. Fruitful periods are followed by leaner years. In times of prosperity foreign credits are increased, monetary systems strengthened, reserves accumulated to withstand recurring days of strain. Today, the foundations of financial systems are being re-examined, "dogmas hitherto accepted as canonical are being questioned" . It is not only in Europe and America that men search for illumination in problems arising from monetary restrictions.

Jan 1, 1933

By Karl J. C. Harries

"12.1. NO DEPRECIATION/GAAPAll calculations and computations relating to the Royalty shall be carried out in accordance with generally accepted accounting principles consistently applied to the extent that such principles are not inconsistent with the provisions of this Schedule and the agreement attached hereto, it being specifically agreed that nothing herein contained shall permit, or be construed to permit, the Operator to deduct any amount for depletion, depreciation, amortization or any deduction that represents a non-cash outlay.Comment: In cases like net profit royalties where recoupment of prior expenditures is permitted, care should be taken to avoid any implication that depreciation may also be taken. It is only logical and equitable that Property Owners should not be permitted an apparent ability to “double dip” with respect to deductions. A provision like this example should accomplish the task. It will be noted that the example specifically contemplates that the negotiated arrangements will prevail over any requirements of GAAP. Accordingly, if the parties agree to an unusual formula for recoupment, it will not be set aside to accommodate GAAP requirements. Under GAAP, revenues and expenditures are accounted for on an accrual basis. In addition, it specifically prohibits the taking of non-cash deductions, which is in keeping with the concept of recoupment.Although in some ways the example states the obvious and could be considered redundant, its presence, especially in provisions contemplating recoupment, makes it clear to the financial people that there may well be some variations from normal practices dictated by GAAP, while at the same time confirming the availability of GAAP to fill any voids.The accounting profession often makes the caveat that application of GAAP is an “art”, not a “science”. GAAP do not provide a cure-all and can create problems that will have to be addressed. For example, GAAP contemplate that asset costs are to be reduced by investment tax credits, which can cause a problem for a payor with more than one mine."

Jan 1, 2003

By Y. Gordon

ABSTRACT A methodology based on a two-stage approach was developed for process technology selection. The first stage includes evaluation of available technologies, followed by shortlisting the best technologies based on mass and energy balance modelling, financial analysis, and risk analysis. The second stage involves detailed analysis using refined input data, mass and energy balance modelling, and capital and operating cost estimation, as well as a more detailed financial analysis. A case study covering the selection of ironmaking technologies for a company in the Russian Federation is presented to illustrate the critical elements of the methodology and the analysis process.

Jan 1, 2014

By Charles Camsell

At the Annual General Meeting of the Institute in 1924. I endeavoured to present the position held by the mineral industries in the commercial life of this country. The facts and figures were presented at that time in a detached way. Since then, however, I have made some attempt to analyze them in order to determine the causes for that position and to draw some conclusions as to the future of the mining industry. As everyone knows, our trade figures are very often used in political discussion, especially in discussion of tariff policy. It would be entirely out of order for me to say anything touching the tariff issue and I want to have it clearly understood that, in my opinion, the material I am about to present contains not a single statement or conclusion which anyone would be warranted in using as an argument for either a lower or a higher tariff or for tariff changes of any kind. As a starting point, let me re-state, very sketchily, Canada's general situation in external trade. In the last calendar year, 1924, we sold Canadian merchandise of all kinds to other countries to the value of $1,045,000,000 in round figures. Our purchases abroad reached about $893,000,000. Thus our sales exceeded our purchases by roughly $152,000,000. In other words, we had what is known as a 'favourable balance of trade' - one of the biggest favourable balances we have ever had in our history. The proceeds of our sales of Canadian products enabled us to meet the bills for all our purchases of foreign commodities and, in addition, placed a large surplus to our credit with which to offset our interest charges and other obligations abroad.

Jan 1, 1925

By Karl J. C. Harries

"7.1. INTRODUCTIONThis chapter addresses the joint venture and examines a number of general concepts of the joint venture relationship. Chapter 8 looks at some specific concepts related to the provisions of a joint venture agreement, which are equally applicable to a shareholders’ agreement or other contractual relationship. The term “joint venture” is used because the author is a common law solicitor (a matter of convenience for which apologies are offered to civil law readers), but it should be noted that, in many aspects, the legal structure of an entity is irrelevant. It is the relationship of the parties, be they venturers or shareholders, that is important, and the areas of concern are surprisingly similar (except for terminology).The details of the joint venture relationship and agreement could fill several books. Accordingly, this chapter and the next focus on selected topics that appear to have caused problems or confusion or to be the basis for disputes. And remember that, although the following discussion is in the context of a joint venture, many of the comments apply, either directly or indirectly, to virtually any common undertaking and the agreement defining it.For interest’s sake, this chapter starts with a summary of some of the earlier types of agreements and arrangements that have evolved into the joint venture agreement of today in Canada, the philosophy of their format, and the reasons for their demise.7.2. EVOLUTION OF THE CANADIAN JOINT VENTUREThe Early DaysMuch of the opening up of Canada’s north is due to exploration for and development of mines. The early discoverers were relatively free to roam and explore at will and, if they were fortunate enough to find something, they dealt with the appropriate government to acquire exploitation rights. The early interests lay in gold or silver. Workings were small, usually worked by the owner alone or with only a couple of helpers to extract the native gold or silver. If the owner wanted to move on, he could sell his property outright and use his stake to look elsewhere.As logging and mining camps were opened, the development of better roads and railways made access easier. Entrepreneurs saw the opportunity to make money by assembling large parcels of land and working them as a single operation. In order to do this, some owners who were not ready to sell out had to be convinced to do so through more attractive offers"

Jan 1, 2003

By George R. Pratt

Although the title of this paper focuses attention to the Winnipeg coal market the following remarks should be considered applicable not only to conditions in Winnipeg but to the whole western coal industry. Technical descriptions of coal and coal-burning have been omitted. These details are already covered in other numerous publications. In discussing a market the first consideration must be the product which is required to be sold. The class, quality and price at the point of origin must be taken into account and therefore this feature will be discussed before proceeding to outline conditions in the Winnipeg local market. The writer thinks of coal as a manufactured article, not, as it is generally considered, a fuel to be dug from the ground and dumped into the consumer's bin. The work of manufacturing must be considered in detail:- 1. Consider first the coal as it is in the ground: (a) What is its fuel value? (b) Where is its market? © With what will it be in competition? 2. Consider secondly: (a) What it will cost to mine the coal. (b) What has to be done to prepare the coal for market after it is mined. This must be considered in conjunction with the answer to question 1 ©. 3. Thirdly, consider the method of business to be adopted by the producer:- (a) Is it proposed to build a market on price? Or (b) On quality?

Jan 1, 1925

By L. D. van Dyk, G. S. Tshofu

Iron ore fines are by-products of iron ore mining operations. Unlike iron ore lumps, fines cannot directly be used in conventional iron making processes, and consequently large quantities accumulate around the world. Pelletizing and sintering can be used to convert iron ore fines into agglomerates or briquettes for processing with lump ore, but these techniques are energy intensive and produce greenhouse gases. This research investigated the extraction of iron from iron ore fines using acetylacetone (a ß-diketone) as an environmentally friendly alternative process for fines utilization. A 2k factorial experiment design was used to identify the significant extraction variables. It was found that the reaction temperature and solid to liquid ratio had significant effects on the extraction process. The extraction kinetics were studied at different temperatures and the highest iron extraction (97 %) was obtained after 48 hours at 413 K and 0.025:1 (g:mL) solid to liquid ratio for a particle size range of +106 to -150 µm. The extraction products were easily separated from the unreacted acetylacetone by flash distillation and iron(III) acetylacetonate crystals were recovered. An economic evaluation showed that selling the crystals was profitable. Alternatively, the crystals can be reduced with hydrogen to iron particles and acetylacetone (for reuse).

Jan 1, 2015

By George B. Saunders

It is the purpose of this paper to point out conditions as they exist in the merchandizing of coal, to compare these conditions with methods in use by competitive producers of coal substitutes, and to present briefly some suggestions which may help the individual operator to market more coal in the immediate future, while we are waiting for the scientist and research worker, who are now busy on coal betterment , to produce in a practical way the results which they now write about in such glowing terms. While it may be unnecessary to call the attention of coal operators to the present deplorable condition of the industry, it might be well to impress upon our members in other branches of mining, as well as upon the public at large, the seriousness of the situation. Emerging from the war and the period of reconstruction that followed, the coal industry found itself with too many mines and too many men for normal conditions. To make matters worse, the interruptions in deliveries caused by strikes, the unfavourable publicity caused by socialistic propaganda, and the repeated governmental investigations, made the market a fertile field for coal substitutes which were not so handicapped. These substitutes were well advertised, and were marketed in an up-to-date manner, furnishing an example from which the coal operator could well profit. Now, whether or not there is agreement as to the cause or causes of this condition, there can be no doubt that we are today face to face with the fact that the sale of coal has not kept pace with the sale and use of other commodities. Had it done so, we would ere this have been able to take care of the surplus labour and work our mines at least approximately full time.

Jan 1, 1929

By Robert T. McKnight

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

Jan 1, 2003

By R. P. Hackl, P. G. West-Sells

Carbonaceous gold ores are particularly attractive for leaching by ammonium thiosulfate as the gold thiosulfate complex is not significantly adsorbed by the organic carbon present in the ore. A technically and economically feasible process for treating these ores with ammonium thiosulfate has been developed. In this process, gold is extracted by leaching the ore with ammonium thiosulfate, the solution is separated from the ore by counter - current decantation, the gold is recovered by precipitation with ammonium sulfide, and finally the gold containing product is upgraded by reacting the elemental sulfur present in the precipitate with ammonium sulfite. The precipitation filtrate is recycled back to the grinding step to close the solution balance. Reagent consumption is not excessive. Besides precipitating gold, the precipitation step removes most deleterious solution impurities and converts a portion of the polythionates back to thiosulfate. This paper discusses the optimization of the leaching, precipitation, and upgrading steps. The results of a 10 kg/h pilot plant campaign are also discussed.

Jan 1, 2005

By Christine Hansen

?Kiss my Asteroid? Unofficial Title Human life is tied to minerals It?s worth noting that: The living human body consumes minerals. The minerals we take in multivitamins show the close linkage between human beings and mineral resources. Unlike tourism or specialized manufacturing, a human being could not live without mineral consumption. Minerals and their consumption is a tangible part of human life.

May 1, 2013

By Karl J. C. Harries

13.1. RIGHT TO RECEIVE ROYALTY CONTRACTUAL ONLY1

Jan 1, 2003

By Rob Boom, Yasuyuki Tozaki, Greg Traquair

The objectives of the business case are to examine a proposed metallurgical project and answer fundamental questions about project feasibility, risks, opportunities, and value. A business case fulfills these basic functions: estimates economic value; helps to understand competitiveness; serves as a risk management tool; and serves as a communication tool. A business case evolves with the project life cycle, and supports the gate reviews at the end of each phase of engineering, through to project construction and operations. A business case must be holistic, including all elements of scope that can impinge on project risk and value.

Jan 1, 2015