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By Tomek Ulatowski

This article discusses four principal areas relevant to financing direct reduction facilities: (1) Lenders' differing requirements with respect to projected cash flows; (2) The impact of leveraging on project viability; (3) The importance of appropriate debt structure; (4) The significance of accurate and complete capital cost estimates. The overall findings emphasize the inseparable connection between the project economics and its financeability, and particularly how direcly intertwined they both are in the project planning.

Jan 1, 1978

By G. V. Campbell, O. T. Holdsworth, M. G. Nelson

A senior design project is required by all accredited mining engineering degree programs. Often referred to as the capstone of a student’s education, this project is expected to include all the important components of the preliminary economic assessment of a mineral prospect, including orebody modeling, grade and reserve estimation, selection of mining and processing methods, preliminary mine design, access and utilities, environmental compliance and reclamation, and financial analysis. Two of the authors (Campbell and Holdsworth) completed a senior project in 2021. They analyzed the Akie zinc deposit located in Canada. This paper summarizes the economic analysis portion of that project. The two primary objectives of this economic analysis were risk reduction and integration of economics and engineering. Addressing risk is important as risk is one of the primary concerns in mining investments. Risk reduction was the primary concern through the entirety of this economic analysis. Integration of financial analysis and engineering design was the first component of a risk reduction design. This allowed for financial and engineering design to be optimized in conjunction with one another. This produced benefits from both a financial and an engineering prospective. From a market, economic, and financial risk perspective, risk was reduced by forecasting multiple metal price scenarios, and then addressing the Akie project’s economic viability at each price point. Lastly, risk was address through consideration of nontraditional financing options. The project also sought to minimize financial and human capital risk, by proposing mutually beneficial cooperative social relationships and favorable work, schedules. Description of that work is not included in this paper.

Mar 2, 2022

By Christian F. Baiz

Industrial minerals can have similar financing requirements to those needs of metaliferrous and coal mining projects. Although, one may see many similarities in the fundamentals of the various risks that must be evaluated in lending to any specific project, one of the outstanding differences is the understanding of the many different markets that these industrial minerals represent. There are in excess of 30 principal industrial minerals ranging in terms of annual production from the largest quantity such as sand and gravel, to possibly the smallest quantity of production of a legitimate industrial mineral which may be defined as industrial and rough gem diamond. If we assume that it is necessary to finance independent projects of ore bodies of industrial minerals for development, the financing techniques are similar to the fundamentals that we would use for financing coal projects or metaliferrous deposits. Therefore, let's begin by redefining project financing in the traditional banking or private sector area, and then in the later development of this paper, we will apply these techniques to industrial minerals in general and cite it with several specific examples.

Jan 1, 1982

By William L. Young

I think I should let you in on one of Canada's best-kept secrets, if you will promise not to tell it all over the place. Believe it or not, good, honest, enterprising capitalism is still alive and flourishing north of our common border, and I am living proof that capitalism is still working for the little guy. My personal story of mining development in Canada isn't all that rare -- you've probably heard something like it from other areas and other days several times -- but my case brings it up-to-date. I would like to Tell you briefly the history of Northumberland Mines Limited, a contemporary case of individual enterprise getting a mining operation underway. And if I can do it you probably can too.

Jan 1, 1981

By Barrie A. Wigmore

There are two aspects of financing western coal development -- whether there is going to be enough money to finance the prospective large development of the industry, and the specific techniques of raising money for that development. To take the first question of whether there is going to be enough money around to finance your industry, I think it is quite clear that the restrictions on the development of western coal are going to be non- financial. Environmental impact problems are creating the greatest delay in coal mine development, at the moment; but getting enough personnel, mining equipment, railroad equipment, and failure of the Department of Interior to act on leasing federal coal lands all appear likely to create significant bottle- necks in the development of western coal -- larger bottlenecks than financing. Financing appears straightforward for the industry. There are many projections of the financing required to meet Project Independence goals. The National Academy of Engineers estimated that development of 500 million tons per annum of western coal would be necessary by 1985 to meet the Project Independence goals which might require $20 billion of capital spending. It is generally agreed that 500 million tons a year is not a realistic possibility. Carl Bagge?s estimate of production of 250 million tons a year by 1983 appears a more reasonable projection. Development

Jan 1, 1976

By L. Clark

Despite near-record commodity prices, the mining industry continues to search for ways to maintain profits in these times of steadily increasing energy prices and steadily decreasing grades. The pressure is still on today’s miners to continuously improve their operations because they know that one day prices too will drop. Some, however, have seized the opportunity to employ systematic methods to reduce costs and increase the efficiency of their workforce and equipment. As a result, closer attention is being paid to scheduling and the value that could be added by defining the extraction sequence that maximizes the net present value [NPV] of a project. This paper will discuss the challenges faced by Newmont Mining Corporation [Newmont] at its operations and the application of sophisticated software tools and methods in its search of solutions to this problem.

Jan 1, 2007

By F. Seymour

A dynamic programming algorithm is presented that takes a series of nested phases, a fixed mining rate schedule, a fixed plant production capacity schedule, and finds the mining and cutoff grade sequence that maximizes the Net Present Value. This tool allows the Mining Engineer to quickly look at project sensitivity to various production capacities, commodity prices, and costs. A description of the algorithm is given along with examples of how it has been used at Newmont.

Jan 1, 1995

By F. Seymour

A dynamic programming algorithm is presented that takes a series of nested phases, a fixed mining-rate schedule and a fixed plant-production-capacity schedule, and, from these, finds the mining and cutoff grade sequence that maximizes the net present value. This tool allows the mining engineer to quickly look at project sensitivity to various production capacities, commodity prices and costs. A description of the algorithm is given along with examples of how it has been used at Newmont Gold.

Jan 1, 1996

By Joe W. Cotton, Thomas A. Wheeler

This paper briefly covers theories behind caking of crystalline salt particles, and methods of its prevention. The main factors that influence the extent of caking are humidity, storage pressure, temperature variations, and length of storage time. Careful adherence to control- ling these variables are more critical than the addition of even the most efficient anticaking reagent. The principle characteristics that a successful anticaking reagent must possess are: high retention at the temperature of application, good coating of reagent on the particle surface, capability of in- creasing the hydrophobicity of the particle, reducing the surface tension of liquids, and/or creating of a barrier between particles that prevent contact between particles, and modifying the crystal structure of the salt between the particles. Methods to evaluate the reduction of caking tenacity with the application of various anticaking reagents, reagent volatility and reagent degradation in plant and laboratory scales are discussed. Various types of anticake reagents used today in industry are organic active and inactive reagents, inorganic inert and inorganic salt crystal modifying re- agents.

Jan 1, 1986

By Douglas B. Silver

The key to unlocking value is to find opportunity where others have missed it. How does a company find value in a thoroughly explored asset? This article explores the approach taken by one company and the results it achieved from working this problem. The town of Shafter is located on a small bend in the road in west Texas' Big Bend Country. Its past emulates the glory days of so many other mining camps. A discovery was made, fortunes were built and World War II shut down the operation. The Shafter deposit continues to be one of the larg¬est undeveloped primary silver deposits in North America. Gold Fields Mining Co. recognized the area's potential in 1977 and embarked on studies to reopen and develop the district. Gold Fields spent $16 million on the Shafter project. It drilled more than 86,240 m (282,940 ft) in 475 holes, sunk two shafts and developed 1,550 m (5,100 ft) of underground workings. Today, the mothballed 447-kW (600-hp), single-drum Nordberg hoist and permanent production-type, single-compartment headframe continue to crown the shaft. Other buildings onsite house compressors, mine pumps, spare parts, drill core and other supplies. All these items look as though they arrived yesterday. By 1982, Gold Fields had completed an extensive feasibility study with ambitions to. construct a 1.36-kt/d (1,500-stpd) agitated cyanidation mill and base metal gravity circuit. Reserves at Shafter stand at 4.23 Mt (4.67 million st) grading 193.5 g/t (5.65 oz/st) silver. Gold Fields planned to produce 71.5 t/a (2.3 million oz/year) of silver at a head grade of 196.2 g/t (5.73 oz/st) silver with a 77% recovery rate. Cash costs were projected to be $5.54/oz with an anticipated initial and total capital cost of $46.2 million and $51.3 million (1984 dollars), respectively. The study assumed a silver price of $8.60/oz that has not been seen since the Hunt brothers quit buying silver. When silver prices declined, Gold Fields put the property up for sale.

Jan 1, 1999

By Ellis Brien, O&apos

The fine coal fraction of a coal stream is that fraction which contains particles essentially in the -28 mesh size range. This fraction will normally first appear, in a coal preparation process, as a result of classification to segregate raw coal into various size components for beneficiation. More specifically, it could appear in desliming screen underfiow, classifying cyclone overflow, and in other process circuit components. It's recognized that the top size of this fraction has been determined more by secondary reasons, such as desliming screen area for the heavy medium cyclone circuit, the dewatering equipment for the fine clean coal, or even the stability of the refuse thickener circuit. Benefits, both economic and environmental, gained by beneficiating the fine coal fraction of a raw coal stream are increasing in number, until today, fine coal beneficiation is a necessity in most coal operations requiring any degree of preparation. This is due to some of the following reasons: • In the past it was frequently more economical to discard -28 mesh raw coal sizes than to recover the coal values from them. Today, mining costs have escalated to the point where all coal values leaving the mine should report to the finished product if possible. • Today's mining methods are producing run-of-mine coals containing higher percentages of -28 mesh sizes. This heavily weighs the economic balance in favor of beneficiating this fraction. As much as 25% of the run-of-mine coal from some mines is in the fine coal fraction. Beneficiation is recommended so that clean coal contained in the fraction can be recovered to reduce the loss of coal values. • Existing and pending environmental regulations mandate that solid fuels now consumed in power station boilers contain almost no pyritic sulfur. This form of sulfur appears in raw coal in the fine coal fraction, but can be removed by coal beneficiation. Environmental considerations dictate that every year, more of the fine coal produced for steam generating purposes in the US be beneficiated. To deliberately discard any portion of the fine coal can only add to this cost, not only in the sense that fewer tons will be recovered but, more importantly, additional tonnage will be diverted to the most capital- and labor-intensive section of the entire preparation plant-the fine refuse dewatering section. It is apparent to preparation engineers that dewatering and ultimate disposal of the fine refuse derived from this beneficiation step is certainly the most difficult technical problem presented in the entire plant design. Therefore, any beneficiation procedure which increases the fine coal recovery, or in any manner decreases the tonnage of fine refuse to be dewatered, is going to be cost effective. Since the -28 mesh fraction contains both coal and refuse particles in their finest particle sizes and thus presents the greatest degree of liberation, one would immediately infer that the highest degree of beneficiation would be achieved. This is not the case-the opposite is more likely true. Conventional coal cleaning devices based on specific gravity (such as

Jan 8, 1980

By Mutombo Nombe, Avimanyu Das, Rick Honaker

Enhanced gravity separators (EGS) provide a more efficient separation than froth flotation when cleaning coal in the 150 x 25 µm particle size range. To improve the performance of an EGS unit, air bubbles were injected into the feed stream in an attempt to decrease the apparent density of the coal particles due to the formation of bubble-coal particle agglomerates. Air injection had a significant impact on operating characteristics and separation performance. Coal recovery was increased by 10 to 20 absolute percentage points while a 2 percentage point drop in the minimum product ash content was also achieved.

Jan 1, 2005

By R. Q. Honaker

Until recently, the application of the Jameson Cell technology in North America has been restricted to minerals processing. Recently, laboratory, pilot-plant and full-scale testing has been conducted to assess the Jameson Cell's ability to effectively treat fine coal. Based on the data, carrying-capacity relationships have been developed. In addition to its operational simplicity, the Jameson Cell has the ability to provide a separation efficiency near the theoretical separation performance on the basis of ash rejection while achieving a relatively high throughput capacity Tie results obtained from the various fine coal cleaning applications in North America is presented in this publication.

Jan 1, 1999

By P. Venkatraman, F. S. Knoll, W. S. Kow

Froth flotation is the most widely used technique for cleaning fine coal. This practice may change, however, with the development of enhanced gravity concentrators such as the Mozley Multi- Gravity Separator (MGS). The MGS is a flowing-film concentrator that utilizes centrifugal forces to improve the separation of flotation-size particles. In the present work, a pilot-scale test program was conducted to examine the effects of feed rate, feed solids content, wash water flow rate and drum rotation speed on the performance of the MGS. The test results indicate that the MGS effectively rejects high-density minerals such as pyrite, while ultrafine ash-forming minerals are removed less efficiently. A major advantage of the MGS is that high separation efficiencies can be realized without additional grinding, flotation reagents or heavy media. This article describes the working principles of the MGS and presents data obtained from recent pilot-scale test work.

Jan 1, 1995

By Robert W. Row

The run-of-mine coals in the U.S. being fed to coal cleaning plants have become increasingly finer due to the adoption of modern, mechanized mining methods, and economics are dictating that finer fractions, as well as the coarser fractions, be cleaned. Traditional dewatering methods (vacuum disc filters and centrifuges) are proving inadequate for preparing fine refuse for disposal or fine coal product for downstream handling. The Electric Power Research Institute has been supporting research into the nature and limitations of mechanical dewatering, and novel ways of improving it. The efficiency of various silicone-based chemicals at aiding dewatering was investigated, and it was shown that the final moisture content of hydrophilic coals after vacuum Filtration could be reduced by 1 to 5% with up to 40% increase in filtration rate by addition of one of several of these silicones. EPRI also has an on-going program at its Coal Cleaning Test Facility to investigate the performance of the Larox pressure filter in comparison with that of the disc filter and solid bowl centrifuge. While improvements to the dewatering performance currently being obtained in existing operating plants by such means are achieveable, a fundamental study has shown that, regardless of changes in operating conditions, there may be a limit to the lowest cake moisture content attainable by mechanical dewatering of a given sample of coal fines. Determination of this limit for a specific coal would be useful in designing facilities to dry and handle it.

Jan 1, 1984

By Gary F. Meenan

Continuous pi lot scale dewatering tests compared the performance of the vacuum disc filter with that of the screen bowl and the solid bowl centrifuges. The test results allow the a priori prediction of plant product moisture based on the feed particle size. This information is useful for selecting the best dewatering device for a given size material and for optimizing the dewatering performance of existing plant installations. Quantitative information was gathered on the ability of filter aids to improve the filtration rate of fine coal slurries. A polymeric flocculant and oil were added to the disc filter feed material at various dosage levels. Both filter aids increased the disc filter output. For the coal tested, the flocculant filter aid achieved higher filtration rates at a lower cost.

Jan 1, 1988

By Yuemin Zhao, Daniel Tao, Xinxi Zhang, Qingru Chen, Maoming Fan, Zhenfu Luo, Xiuxiang Tao, Guohua Yang

Coal is currently cleaned with the minimum of size reduction, fine particle processing, recovery, and tailings disposal are major problems. Adequate water resources are not always available. For example, two thirds of China's coal is located in arid areas. Hence, dry separation provides an alternative approach. Of the dry coal separation methods available, air dense-medium fluidized beds have been used to separate 50~6mm coal efficiently. However, excessive bubbling and back mixing of the separated solids in the air-dense media fluidized bed causes the high lower size limit of 6mm for the feed material, this affecting the preparation efficiency. Based on prior study on air-fluidized dense media for 6~50mm coal preparation, this paper presents methods and test results on the fine coal dry classification, static electricity beneficiation of 0~0.5mm coal, and magnetically stabilized fluidized beds for separating 0.5~6mm coal.

Jan 1, 2005

By J. D. Miller

Many factors -- political, environmental and technological -- will determine the extent to which the United States realizes the potential of its vast coal resources. Not the least of these factors is technogical development including mining, processing and transportation. With regard to processing technology, about 50% of the 800x106 tons of coal mined annually in the U.S. is processed in preparation plants. The purpose of the physical separations accomplished in these preparation plants is to remove ash (present as clays and other oxide minerals) and sulfur 'present mostly as pyrite). Coal flotation circuits for such separations are becoming more important in the processing of minus 28 mesh coal. (1,2,3) For example in the U.S. in 1960, 31 flotation plants processed 26,500 tpd; whereas in 1980, there were 80 flotation plants which processed 78,300 tpd. This corresponds to an annual growth in flotation plant capacity of 10 per year during the past two decades. Coal flotation is based on the natural or induced hydrophobicity of coal particles which are separated from hydrophilic ash and sulfur constituents by attachment to air bubbles. The coal particle/air bubble aggregates are collected in a froth phase which is created by the addition of a suitable frother such as MISC. Without exception, such separations are made in a conventional flotation cell, which, in essence, is a stirred tank reactor with a shrouded rotor to shear the air as it passes through a hollow shaft. The dispersed air bubbles (4.0 mm diameter) are stabilized by addition of the frother. Collision of the air bubbles with, and/or precipitation of the air bubbles on, the coal particles results in the formation of coal particle/air bubble aggregates which rise in the gravitational field and are collected in the froth phase developed at the top of the flotation cell. Restraints on successful separation by this conventional flotation technique are particle size and retention time. Generally it is found that effective flotation is only achieved for particle sizes between 10 and 1000 microns. Further, with respect to retention time, it is found that a nominal retention time of at least 2 minutes is required for successful separations. These facts limit the effectiveness of conventional coal flotation. Coal fines may be lost in the reject stream and disposal is frequently a problem. The retention time required for conventional flotation results in large floor space demands which limit the capacity of the plant.

Jan 1, 1981

By T. E. Durney

In the Fall of 1987 The Wellmore Coal division of The United Company installed a fines separation circuit in its #20 plant near Big Rock, Va. The addition of the fines circuit included a bank of classifying cyclones and two flotation units; one a conventional 4 cell, 34 m3 Wemco cell, the other an 2.4 meter diameter by 7.6 meter tall, 28.3 m3 column flotation cell. The new fine coal separation circuit is depicted in Figure 1. The column flotation cell is manufactured by the Deister Concentrator Company, Inc., under the trade name Flotaire. The Deister Flotaire column cell utilizes a counter current flow arrangement and a different means of generating air bubbles than that of conventional mechanical flotation cells found in coal processing plants. Other features include diffusers for additional air supply and a froth washer. This cell is one of the few commercial scale column cells processing coal.

Jan 1, 1990

By Joseph L. Walker

INTRODUCTION In looking over the diversity of the papers that are being presented during this meeting on The Industrial Practice of Fine Coal Processing one cannot help but be impressed with the progress the industry has made in beneficiating fine raw coals, and in the number of innovations that are under study to increase recovery and to improve the quality of the finest size particles produced at a preparation plant. Those who are not in our industry, who look at the technical program, might be confused, when they see that the papers include such topics as cleaning to zero and heavy media cyclone cleaning 28M x 100M; application and performance of fine coal jigs, tables, hydrocyclones, spirals, and flotation; filtration, dewatering and thermal drying; and ancilliary aspects such as fines handling, instrumentation and process control plus screening and liberation. This is an observation and not a criticism of the diversity of papers being presented. The program fits within the parameters of fine coal preparation as the term "coal preparation" is defined, but perhaps not as the term "fine coal" is defined. Admittedly these definitions are sometimes loose. However, each should be made more definitive if a meaningful fine coal preparation overview is to be possible. COAL PREPARATION DEFINED In the opinion of the writer, the term "coal preparation" should be defined as including all work activities that are performed on all components of a run-of-mine coal from the time it leaves a surface reserve or an underground portal, until all components are either ready for shipment or are stowed on, or in the earth in an environmentally acceptable manner. This definition excludes the work that is performed to improve coal quality or handleability inside the mine or pit. This work is commonly called "face" or "pit" preparation. FINE COAL DEFINED The term "fine coal" means different things to different people. In the past, anthracite finer than No. 3 Buckwheat (3/16 in.) was considered fines which often were discarded from the breaker as an unsalable by product; and bituminous coals finer that about 1/4 in. (slack) were either discarded or sold at cost to prevent an accumulation of "no bills" which referred to a product having no immediate sale. Although a standard definition of "fine coal" is yet to be accepted by the industry, a designation of coals by particle-size range has evolved through the wide use of three-circuit flowsheets, wherein the optimum size range by washer type determines the size fractions: a coarse-coal circuit for the plus 3/8 in., a -11- coal circuit for the 3/8 in. x 28 Mesh, and a fine-coal circuit for the remaining 28 Mesh x 0. Logically, the term "fine coal" should refer to some resultant size fraction or some top size by zero. This definition should include a 28 Mesh x 0 feed to a flotation cell but should exclude a 28 x 100 Mesh size fraction fed to a heavy media cyclone. Failure to include the resultant sizes in the definition precludes accounting of the full range of particle sizes present in the feed to the plant. Since the 28 Mesh x 0 fraction is treated in the final circuit of the three discreet washing circuits, now almost always used in U.S. commercial applications, and since it contains all of its resultant sizes, in the writer's opinion, it should be designated "fine coal". FINE COAL CLEANING Cleaning coal fines, which in the past was at best marginally profitable, is now an essential part of coal preparation strategy for a number of reasons : 1. Raw coals now cost more to produce and

Jan 1, 1988