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By James M. Barker

Jan 1, 1985

By S. Zamna, M. E. Defoe, Franklin T. Davis, Earl Rau, Yarroll. Warren H., Paul D. Chamberlin

This section contains a description of the ore processing methods of the walled industrial minerals that are not described in major sections of the book. Table I contains the production figures for each of these commodities in the United States and the world. Specifications for concentrates or final mineral product are also summarized as well as prim for them at the time the section was written. In each chapter an attempt has been made to provide the reader with information on the common commercial mineral or minerals involved with the commodity, some of the uses. the processes used to recover and concentrate the minerals, as well as geographical areas where these process are utilized.

Jan 1, 1985

By Donald E. Rossow

In the mining industry ANFO continues to be the primary source of explosive energy. The three most commonly used loading methods are bulk, pour in 50 lb. multiwall bags and cylindrical shaped wet hole bags. Each loading method has its advantages. Each method has certain disadvantages which limit its effectiveness. The expandable bag system developed by ECONEX overcomes the disadvantages of the traditional bulk, pour in bags and wet hole package products.

Jan 1, 1985

By L. "Andy" Anderson, Stephen N. Short, James E. Friant

Since the introduction of "boxhole" drilling in South Africa in 1973, the concept of a blind raise, drilled upward from below, has become an accepted mining practice. A combination machine, capable of constructing raises to a mining level below, or blind raising upward from a single setup position adds a further dimension in versatility. A machine with these dual operating modes was designated by The Robbins Company as the 53R and was introduced into the Western Deep Level Mines, South Africa in 1984. The unit is powerful (200 hp) and compact (18,000 lbs., in a 10 ft x 4 ft 5 inch x 4 ft 6 inch package). This paper describes the design considerations for the new machine, provides field data from early trials, and looks briefly at its overall market and potential.

Jan 1, 1985

By Fred A. Curtis, Kathryn E. Moore

"The past 14 years have brought an increased awareness of environmental problems. Surface mining for mineral aggregates has been one o f the issues which ha s sparked fierce controversy and debate. Various level s of government, industry, and the public have engaged in an unending battle for adequate planning, regulation, and rehabilitation of pits and quarries. Agreement has seldom been reached and, as a result, few standards, guidelines or policies have been established, or enforced province-wide.Surface mining ca uses a number of environmental problems including noise, dust, water table disturbances, aesthetic degradation, increased traffic, and health and safety hazards. These problems are particularly serious in urbanizing area s, where people are exposed to the mining operations. Associated with the operational phase of surface mining are the issues generated by the multiplicity of abandoned pits and quarries which dot the countryside. These large, gaping, often dangerous waterfilled holes are a blight o n the landscape, and represent a misuse of land.The environmental problems connected with pit s and quarries are compounded by the fact that accessible reserves of mineral aggregates are being lost through the process o f urbanization. In addition, restrictive zoning at the municipal level is restricting access to even more aggregate rich land. This results in the paradox that the very urbanizing process which creates the demand for aggregates is rapidly reducing the available supply. These problems have stimulated the Ontario Ministry of Natural Resources to call for a province-wide program of inventory, assessment and planning for the protection o f high-quality reserves in Official Plans. These proposals have met with strong opposition from municipal leaders, who are jealously protecting their autonomy.Environmental management education is a prerequisite for all parties involved in pit and quarry planning, regulation or rehabilitation. To this end the following bibliography of selected articles with attention given to the Ontario experience, should provide helpful information on these topics."

Jan 1, 1985

Mr G. Maude was educated at Huish's Grammar School (Taunton) and Leeds University. He graduated in 1961 with a B.Sc. degree in Mining. Mr E.B. Crocker was educated at Florida Park High School, Witwatersrand Technical College, and the University of the Witwatersrand.

Jan 1, 1985

By Thomas J. Keefe, O&apos

The effects of cobalt, B-naphthol, glue and antimony on the polarization behavior of zinc sulfate electrolyte were investigated. It was found that B-naphthol was beneficial in reducing the detrimental effects of cobalt while antimony and excess glue were each harmful. Since the nu cl eat ion over potential was insensiti1ve to coba1t, other regions of the polarization curve were used to indicate electrolyte balance. The low? current density area occurring in the reverse or anodic sweep direction was? often an indicator when an ?unstable condition existed. The two parameters evaluated were the degree of inflection in the polarization curve in the low current density region during scanning and the rate of current rise observed when the sample was potentiostated at -0.781 Volts (SHE). Using this technique, a two-additive system was shown to be desirable to control cobalt and antimony containing electrolytes. The structure of the deposits was examined using scanning electron microscope techniques.

Jan 1, 1985

With the continuing move towards digital signal based control and measurement, it is inevitable that such technology will be increasingly employed on remote sites. The benefits of increased metallurgical performance, of reduced energy and manpower requirements far outweigh the problems associated with high technology in remote locations, provided that the installation is well thought out from both technical and manpower viewpoints. The new accessibility of vast quantities of process data will uncover previously unthought of savings and profit opportunities but brings with it the responsibility to carefully design the data presentation methods. The resulting changes in installed hardware will force changes in the maintenance and engineering workforce and will affect even the stores and purchasing department methods.

Jan 1, 1985

By Christian F. Baiz

INTRODUCTION Industrial minerals can have similar financing requirements to those needs of metaliferrous and coal mining projects. 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. (See Tables 1 and 2) Project finance techniques, analytical methods, and information requirements are covered elsewhere in this Chapter and Chapter 10. Some comments on equity finance aspects follow. EQUITY AMOUNT The amount of equity in a financing transaction provides a cushion to the lender in case the project runs into trouble. Generally speaking, the greater the amount of risk in a project, the more equity a lender will require. The amount of cash equity in a project financing transaction is between 25 and 40 percent. The amount of leverage (debt/equity) is negotiable based on such factors as the strength and extent of the sponsor's undertakings, of the project's economics, and the term of a strong sales contract. Naturally, a borrower seeks to obtain d loan with as little equity required as can be negotiated. Zero percent equity is usually associated with a take-or-pay contract (a hell-or-high- water unconditional commitment under which the purchaser must pay for the commodity as though it were shipped regardless of whether it is actually mined or shipped) with a financially strong corporate entity i.e., the parent company or an end user. As a take-or-pay contract is tantamount to a guarantee of payment, the banker views the credit basis of the loan as being other than the borrower's mining operation and therefore will analyze the creditworthiness of the institution purchasing the commodity on the basis of its corporate balance sheet. Do not confuse a take-or-pay contract with a take-if- tendered or take-and-pay contract. Another means in the United States of obtaining zero percent equity is the carved out production payment financing, typical of coal mine financing. This involves the sale, or conveyance, by the owner of the mineral property of a production payment to a nominally capitalized company. The nominally capitalized company is formed solely to buy the production payment and usually borrows 100 percent of the purchase price from a lender. Equity amounts of 10 to 20 percent generally are found in transactions which employ techniques such as an advance sale or a subordinated lease/loan. These agreements are viewed as quasi equity by most banks for several reasons. First, the proceeds represent a cash infusion early in the project's life - usually prior to the bank lending any funds. Thus, the repayment schedule is "behind" that of the bank debt. In the case of an advance sale, repayment is in the form of a long-term supply contract with favorable terms, usually priced close to the mining operation's costs. There is also usually a requirement that all costs of the project be paid for by the loan or equity, often making the sponsors financially responsible for any cost overruns. Cost overruns are a major risk in any project, large or small, and are often due to unforeseen factors such as wildcat strikes, a piece of faulty equipment, or any event which delays completion, e.g., remote location, weather, etc.. . The question of how overruns are covered can be negotiated. For example, in addition to the original debt/equity ratio of the project, there can also be a cost overrun ratio that will

Jan 1, 1985

By F. A. Gates, Bengt Samuelson, James E. Edmunds, S. McCune, Neil Hario, Norman L. Weiss, J. M. Bertram, A. M. Cavaliere, F. M. Jr. Stephens, D. D. Chiang

DESIGN BASIS Size of Project The size of the project generally is expressed in tons of ore milled per day, but company policies differ widely in this respect with a few adhering to this set figure but many expecting the design capacity to be liberal. To some companies that follow the latter practice a 25,000-tpd milling plant that cannot reach 30,000 or 35,000 tpd with¬out major additions is a disappointment. The engineers responsible for planning the operation must know what is intended. Other projects are sized according to the tonnage of product rather than of mine ore; examples are iron ore mills that express size in terms of tons per year of pellets or high-grade concentrates, heavy minerals plants in tons per year of rutile or ilmenite, cement plants in barrels per year, potash in tons per year of muriate, phosphate in tons per year of washer rock and flotation concentrate, and others. However, tons per day milling rate is also the common denominator in most of those instances because the major equipment has to be selected on that criterion. Equally important are operating schedules, particularly the number of operating days per week and shifts per day for ore delivery, crushing, grinding, and processing. Hours per shift also are an impor¬tant factor in design, particularly in the case of ore delivery, and the lost time expected for maintenance, cleanup, inspection, preventive maintenance shutdowns, and many others, has to be taken into ac¬count. Frequently, the ore deposit will vary in hardness and grade to such a degree that the capacity of the mill will vary widely from year to year and cannot be expressed as a fixed figure, but rather as an average over a calculable period, such as ten years, or as a specific daily capacity over the first two years, next four years, etc., or some similar projection. A good example of this kind of situation is Asarco's Mission operation 15 miles southwest of Tucson, Ariz., described by Weiss and Vincent,1 where the major rock types differed widely in hardness, so that a change in the proportion of these types in the mill feed could have imposed difficult design problems if a constant tonnage rate had been expected. Expected Life The life of a mining operation depends upon the size of the deposit and the rate of mining. The latter is a policy decision based on an economic analysis2 which, in turn, is based on many factors. From the point of view of mill planning, the estimated life of the operation determines many criteria and affects many decisions on strength of structures and degree of protection of men and materials, the quality of the materials-handling and process machinery, the type of delivery systems for ore to the mill and concentrates to the smelter or market, environmental considerations, and many others. Costly installations that may be excellent investments for a 20-year project may be waste¬ful for a 5-year operation. An example is the comparison of different methods of crushing or grinding. Take single- vs. multiple-stage grind¬ing-the former may be found more economical for a 5-year operation, and the other, more costly method more economical for a 15- to 20-year life. Mining and Ore Transportation The mining method and the means of transportation of the ore to the first crushing stage have far-reaching effects upon mill design, particularly the crushing sections, and upon site selection (see Chapter 2, Situation of Mill). Consequently, mill design cannot advance until the mine planning has reached at least tentative decisions concerning these important matters, or reach the final stages until much is known about the ore that may be expected month by month and year by year for a reasonable period. Methods of ore transportation used in over 90 underground and open-pit mines are listed briefly in Section 32 (Table 1), and more detail is found later in this section and in Section 10, Storage and Transport. These methods include surface railroad, trucks, conveyors, surface skips, underground skips, and tramming from hoist or tunnel. In surface mining, transportation of the uncrushed ore by rail or truck to the primary crushing plant-conveniently located for lowest overall cost-is most common. Rail transportation provides low perton-mile costs. Truck transportation, though in some cases less eco¬nomical, is more flexible and more adaptable to mountainous terrain; furthermore, recent improvements have reduced the operating costs to keep trucks competitive on low-grade ores. The design of the primary crushing plant will be essentially the same whether delivery is by truck or rail, but the location of the plant is subject to more rigid restrictions in the latter case because of grade limitations, and these in turn may adversely affect the selec¬tion of the mill site as well. The influence of truck haulage in reducing the stripping ratio in open-pit mines is an added reason for predicting a minor role for rail transportation in the future. The use of conveyors to transport ore from the pit to the milling plant involves (in most cases) crushing the ore to a reasonable size (10 to 20 in. maximum with today's crushers) before conveying. The Twin Buttes system3 which went into operation in late 1969, utilizes primary crushers (two) and conveyors to receive rock waste, ore, and low-grade stockpile material from trucks, then transport them to the appropriate destination. Flexibility is dependent upon the porta¬bility of the primary crushers. In the face of this development, inclined skip hoists are no longer important to the mill designers. Underground mines generally pose fewer problems of design; these will be discussed in Chapter 2. Character of Deposit The degree of homogeneity of the ore in various parts of the mine is an important factor. The characteristics that concern the millman (approximately in order of importance) are: hardness, assay, metallurgical response, size distribution,4 and moisture content. Under metallurgical response may be included degree of oxidation, mineral¬ogy, clay content, and reagent consumption, as well as process re¬sponse in general. Short-term variations-hour-to-hour, day-to-day, or even week-to-week-make operation of the plant more difficult, require greater flexibility of process design and, perhaps, also require more instrumentation and manpower. Uniformity of the ore in the characteristics noted previously and

Jan 1, 1985

By Phillip O. Tyree, Joseph W. Mussey

Bio-epigenetic sulphur deposits occur in Pecos, Reeves and Culberson Counties of far West Texas. Sulfate reducing bacteria, utilizing hydrocarbons as energy, transformed gypsum into replacement limestone and hydrogen sulfide. Hydrogen sulfide, retained in the pores of the replacement limestone, was subsequently oxidized by highly oxygenated groundwaters, and native sulphur precipitated. West Texas sulphur was first recognized at surface exposures by William P. Blake, a geologist attached to the Captain Pope Military/ Scientific Expedition of 1854. Attempts were made in the early 1900's to mine these sulphur vent exposures by a retort method, but the ventures met with little success. In 1967, Duval discovered a large sulphur deposit near some of the old sulphur works in Culberson County. Duval also expanded reserves in a small sulphur deposit in Pecos County. The Frasch process, developed for producing sulphur from Gulf Coast salt domes, proved successful in West Texas type sulphur deposits also. However, modifications of the process were necessary to provide economical and efficient sulphur recovery from the varied ore occurrences. West Texas conditions and logistics require the ultimate in productivity to be competitive in the domestic and foreign sulphur markets. Several companies, in addition to Duval, are producing or have produced sulphur in West Texas. As of June 1, 1984, a total of 29.87 million mt (29.4 million long tons) of sulphur had been produced west of the Pecos River. Duval Corporation has produced more than 88 percent of that total.

Jan 1, 1985

By Gary P. Thomason

INTRODUCTION One may have heard about how various projects were financed or certain companies were successful in obtaining a bank loan, but there are many more projects and companies who fail to get the money they need. At least a portion of these failures, and a large percentage of the frustrations connected with even the successful financings, are a result of not understanding the process of obtaining money. Recent years have seen a proliferation of debt financing sources available to finance minerals operations (see the next Chapter 11), but these represent only a minor portion of the minerals financing market. The fundamental source of borrowed money to many minerals related companies remains the banks. Therefore, understanding the "Loan Approval Process" can easily mean the difference between getting the money or not. LOAN APPROVAL PROCESS The initial stages of the loan approval process should begin long before the bankers, and the organizations they represent, enter upon the scene. The loan approval can be broken down into six stages: 1) Generation 2) Preparation 3) Presentation 4) Evaluation 5) Approval 6) Documentation As you can see in Figure 1, the bank is only directly involved in the second half of the process. The perils in obtaining financing for the smaller minerals venture are primarily in the first three stages, not the last three. The minerals venture making application for a loan can, in almost every case, improve its chances of success by carefully planning and preparing itself and the information that will be required of it in the loan approval process. Generation This first step in the process is deciding on the need for a loan. (Earlier papers in this Book and in Chapter 11 provide some guidance.) It is surprising how many ventures confuse the need for money with the need for a loan. Suffice to say that the equity investor risks both the timing of the yield on his capital and, ultimately, his capital. The lender, on the other hand, advances temporary funds which he expects to be repaid on a specific schedule with a fixed

Jan 1, 1985

By S. Zaman, F. F. Aplan, Franklin T. Davis

This section deals with the oxides of heavy metals, namely, columbium and tantalum, rare earths, chrome, manganese, titanium, tin, and tungsten. Table I contains the production figures for each of these commodities in the US and in the world in 1977. Specifications for concentrates are also summarized as well as prices for concentrates in 1977. In each chapter an attempt has been made to describe the more common commercial mineral involved with the commodity and the processes used to recover and concentrate the minerals, as well as geographical areas where these processes are utilized.

Jan 1, 1985

By Hal D. Peterson

In research sponsored by the Bureau of Mines, a technique was developed for simulation of heap leaching on uranium ores. The equipment used for this simulation consisted of 2-ft-diam columns, constructed in sections, such that ores as coarse as minus 4-in could be treated in bed depths ranging from 8 to 18 ft with test condition variations. The technique consisted of the separate steps of ore preparation, column loading, charge wetting, leaching, washing, and residue recovery. For the ores studied, sulfuric acid was found to be generally superior to alkaline lixiviants. The rate of uranium extraction by acid leaching proved" to be primarily a function of percolation rate, alkalinity of the ores and oxidant requirements of the ores. Column leaching was closely comparable to field-scale heap leaching in terms of uranium extraction rate and recovery results. Acid and oxidant requirements were lower for the field-scale operation. All column tests, as well as the field-scaly heap, achieved in excess of 96-pct uranium extraction on a Bear Creek, Wyoming ore.

Jan 1, 1985

By Ernest L. Bohnet

Jan 1, 1985

By J. R. Boldt, C. M. Kleemann, V. N. Mackiw, B. Meddings, J. A. MacLellan, E. J. Maney, D. E. Halter, D. J. I. Evans, J. Honkasalo, M. F. Dufour

The technology employed in the processing of nickel- and cobalt¬bearing ores is a continually developing process for utilizing the natu¬ral resources available at a given time. Most of the nickel-bearing ores of commercial importance fall under the category of sulfide or lateritic ores. While the occurrences of both types of ore have been known for over a century, until 1960 sulfide ores largely from Cana¬dian mines have constituted the chief source of production for com¬mercial nickel in the Free World. Sulfide ores are readily amenable to some physical means of concentration, but the lateritic ores are not readily concentrated, and to compete economically with the sulfide ores only the high-grade garnierite ores (a type of lateritic ore) found in New Caledonia were processed to any great extent up to the time of World War II. Around 1960, a gradual shift in emphasis towards latetitic ores as a commercial source of nickel became evident. See Fig. 1. New discoveries of sulfide ores, usually located underground, had not kept pace with the steadily increasing demand for nickel. The lateritic ores, found near the surface of the earth, could be readily surveyed and mined. Lower cost processes were being developed for the extrac¬tion of nickel from lateritic ores and for a time it appeared that, based on pre-OPEC economics, the lower grade lateritic ores-down to 1.2% nickel-could satisfy an increasing share of the world demand for nickel. The sharp increase in the price of crude oil in the 1970s, however, slapped an economic damper on the lateritic ores. Processes for treat¬ing lateritic ores consume large amounts of energy; as the nickel industry entered its deep recessionary period in 1981-83, nickel pro¬duction from lateritic ores became less and less profitable than from sulfide ores. At the same time, new sulfide ores were discovered and brought into production, notably in Australia and South Africa. The chapters in Section 17 were prepared in 1973. Recent improvements in mineral dressing techniques since then include Inco's pyrrhotite separation process which can remove additional pyrrhotite from nickel concentrates, resulting in reduced sulfur dioxide emission from the Sudbury smelter, by some 25%. The chapters in this section dealing with nickel are grouped in line with the two broad categories of nickel ores. Starting with the description of nickel and cobalt ores in Chapter 2, Chapter 3 deals with the processing of sulfide ores, and Chapter 4 deals largely with lateritic ores. The intermediate steps to produce a suitable feed for extraction plants and refineries are similar in principle within the same categories, although dissimilar between sulfide and lateritic ores. Thus Inco in Canada employs flotation and so does Western Mining Corp. in Australia, although Inco's plants were started before World War II, and that of Western Mining only recently in the late 1960s. Treatment subsequent to the ore dressing step, however, shows some interesting differences. The earlier parts deal mostly with established and conventional practices, leaning heavily on pyrometallurgy in both

Jan 1, 1985

By Howard Keele

"The Whitewood Mine near Edmonton, Alberta, is owned by TransAlta Utilities Corporation and operated by Manalta Coal Ltd. Approximately 2 million tonnes of sub-bituminous coal is supplied annually to the Wabamun Generating Plant. A high water table, high groundwater pressure, and structural folds contribute to stability problems in the fine-grained overburden. Significant increases in coal recovery have been achieved in recent years through improvements in water management and mining methods. Agricultural capability of the post-mining landscape has also been improved following the completion of mining/ reclamation activities. Introduction The Whitewood Mine, located to the north of Lake Wabamun and seventy kilometres west of Edmonton, Alberta, is owned by TransAlta Utilities Corporation and operated by Manalta Coal Ltd. Figure 1 shows the location of the Whitewood Mine with respect to the city of Edmonton. The mine presently supplies two million tonnes annually of sub-bituminous ""C"" coal to the 582-megawatt Wabamun Generating Plant located adjacent to the mine. The area is characterized by a high water table-, rolling coal seams and an overburden that consists of muskeg, clay and various sedimentary layers of sand, gravel and fine-grained sandstone. These distinctive characteristics require careful attention in order to not only meet the coal delivery requirements of the Wabamun Generating Plant but also to do so economically. Historical Background A small-scale underground coal mine was opened in the Wabamun area in 1910 by the Conner Coal Mining Co. Ltd. Underground operations were continued by several operators until 1948 when the Alberta Coal Co. Ltd. opened a strip mine which was subsequently taken over by the Alberta Southern Coal Co. Ltd. in 1951. The small-scale strip opera"

Jan 1, 1985

By Peter Allen, John R. Stuermer

COUNTRY RISK ANALYSIS A company operating in a foreign country assumes all the risks that it would at home. However, beyond these, it assumes risks that arise from the unique political economic, financial conditions of the foreign country which it operates. These risks are known as "country risks". The importance of these risks has grown appreciably in the recent past (particularly in the aftermath of Iran's revolution in the late 1970s and Mexico's debt rescheduling of 1982-83), and as a result, country risk analysis has become an increasingly useful management tool. Country risk analysis seeks to assess the probability that countries will service their aggregate foreign liabilities on time, as well as the probability that country conditions could inhibit the debt service capability of private sector debtors. This involves assessment of both the ability and the willingness of countries to meet their external liabilities in a timely fashion. "Ability" is linked economic and financial variables: principally, a country's economic structure, foreign exchange generating capacity and debt service burden. On the other hand, "willingness" is tied to political factors: mainly the economic/financial orientation of government policy and the stability of economic decision making. Ability: Economic, Financial Conditions and Prospects Judgement of a country's ability to meet foreign financial obligations begins with a detailed study of a country's external balance sheet which compares the country's foreign liabilities and assets. Table 1 below presents country balance sheets for Mexico, Korea and Indonesia. [TABLE 1 The External Balance 3-,-et 1983 (billions of dollars; Indonesia Mexico Korea Foreign Liabilities 31.1 67.6 40.5 By Source: Bank 13.1 75.5 26.3 Non-bank 18.0 12.114.2 Foreign Reserves 9.3 4.7 7.0] The large magnitude of Mexico's external debt (nearly $90 billion), compared to foreign assets of approximately $5 billion, illustrates the weakness of this country's external payments position, and the main reason that it has been unable to meet interest and principal payments and been forced to reschedule its foreign debt. On the other hand, the relationship between Korea's external liabilities and assets ($50.5 billion and $7 billion, respectively), is more favorable and helps explain why Korea has been able to meet debt service payments and maintain its access to the international capital markets. Indonesia has even a more favorable relationship between its foreign assets and liabilities, $31 billion and $9 billion, respectively, and its debt is mostly lower interest rate, non-bank debt, making for a less onerous debt service burden. After the balance sheet, the analysis turns to a comparison of the country's foreign exchange earning capacity and its prospective financing requirements, that is, the country's future earnings stream

Jan 1, 1985

By Floyd JM

Conventional smelting reactor systems were designed to recover only one main element from their feedstocks. They did not possess sufficient flexibility to allow optimisation of co-production of multiple values from a complex feed.New reactors such as Sirosmelt and Top Blown Rotary Converters are providing new possibilities for making separation between components and this is of great significance for the complex feeds which are becoming prevalent in the metal extraction industry.Process routes using chemical procedures which take advantage of the flexibility of these reactors will be discussed in relation to a number of possible feedstocks.

Jan 1, 1985

Criteria for the manipulation of commodity markets are discussed. Against the economic background of the past twenty five years actual attempts to manipulate markets are evaluated.

Jan 1, 1985