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By L I. Rozman

"There have always been development projects that fall short of expectations. In the last decade, we have seen more than the usual number of mining and oil/gas development projects taking significantly longer to develop and costing materially more than expected. The recent resource-equity market slump proves that investors are now far more cautious about investing new capital in the mineral and petroleum resources sector.What have we learned since 2005? Why have projects missed their targets? Why do investors often feel misled?Valuation of a project and the estimation of value is a more complex process than the evaluation of the merits of project development. The merit of project development can be clear from a prefeasibility evaluation, but this is no reason to skip the rigour of a feasibility study. The valuation of any project that is developed with any added risk should be discounted for this added risk.The development of a project impacts on other stakeholders, and the indirect cost of these impacts can have material implications for the cost structure, time and ultimate valuation of the project for its financial backers. The development of new projects (and thereby supply) can also have an impact on commodity prices, and therefore an impact on returns for financial backers.This paper will provide commentary on the author’s experiences and observations as a project developer and operator for 25 years, before becoming a project financier a decade ago.CITATION:Rozman, L I, 2016. Project evaluation and valuation – an investor’s golden rule, in Proceedings Project Evaluation 2016, pp 31–36 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By E. R. Dotson

Kaolin is an important industrial mineral. It has unique properties, which combined with its low cost, make it suitable for use in a wide variety of products. Kaolin is defined as "any of a group of clay minerals, including kaolinite, nacrite, dickite, and anauxite, with a two-layer crystal in which silicon-oxygen and aluminum-hydroxyl sheets alternate; approximate composition is AlZ03-ZSiOZ-1/ ZHZO".-The kaolin discussed here is composed chiefly of the mineral kaolinite. Kaolin is also commonly referred to as "china clay". Approximately 4.9 kkg (5.4 million short tons) of kaolin was sold or used in the United States, and .8 million kkg (.9 million short tons) was -exported in 1974. In domestic usage, paper coating and filling accounted for 43% of the total, fol-2/ lowed by refractories, rubber, and ceramics.-Figure 1 shows the amount of kaolin sold or used by domestic producers for specified uses for the years 1963-3/ 1973.- Kaolin was produced at mines in 14 states, but Georgia accounted for 75% of the 1974 domestic production. The average value for all grades was $36.00/kkg 4/ ($32. 67/ton) .-

Jan 1, 1977

By Kirk Carlton

This paper deals with a group of subjects so familiar to all of us that we might question the need for discussion. Even so, nearly every day's business turns up expensive examples of differences in understanding, misdirected assumptions and incomplete technical purchase documents. As our international activities increase, so do these problem areas. Their expense in both money and embarrassment gives rise to this attempt to focus a little extra attention on technical criteria and specifications. The two terms ?criteria? and "specifications" are, we believe, worth separating with respect to meaning. They should not be used interchangeably, although they often are. Criteria are by definition "standards for judging", whereas specifications are "enumerations of particulars". In relation to plant or project engineering, the criteria are the general rules and data which apply to the whole project and the specifications are the further listing of detailed requirements for specific contractual items or pieces of equipment. We'll look a little more closely at specifications after we give another minute or two to this "criteria" subject,

Jan 1, 1973

By F. W. Hoertel

The effects of certain process variables on the grain size, grain type, and microhardness of vapor-deposited tungsten were established, and the near-optimum parameters and the efficacy for the vapor deposition process were determined. No significant change in the grain size or microstructure resulted from ultrasonic vibration of the substrate during deposition, from variations in the hydrogen (H2) to tungsten hexafluoride (WF6) ratio, or from small increases in reaction-chamber pressure. Near-optimum conditions were continuous deposition at atmospheric pressure, a deposition rate of 2-mils thickness/square inch of substrate area/hour, a temperature of 5500 C, and a hydrogen to WF6 ratio of 4:1. The addition, individually, of about 2 volume-percent of butane, 24 volume-percent of carbon dioxide, or 4 volume-percent of propane to the hydrogen and WF6 mixture produced deposits with the finest grain size for each gas. A corresponding increase in microhardness accompanied the decrease in grain size. The addition of gases did not alter the columnar microstructure found in vapor-deposited tungsten.

Jan 1, 1966

By John P. Savage

This paper is one of a series being prepared by the United States Bureau of Mines on tunneling methods. The tunneling methods described are those used at the Ojuela unit of the Compania Minera de Penoles, S. A., the Mexican subsidiary of the American Metal Co., Ltd., of New York. The Ojuela unit is situated some 4 miles southeast of Mapimi, Durango. Mexico, the latter place being connected by a 15-mile narrow-gage railway with the standard gage railroad at Bermejillo, some 40 miles to the north of Torreon, the location of one of the company's smelters.

Jan 1, 1931

By P. Rooney

In due course, new smelters will have to be installed in order to meet the increasing worldwide demand for copper. This paper presents the results of a study made for the purpose of identifying the most desirable countries in the world in which to locate a new smelter. Both sociopolitical and economic factors were taken into account. Criteria developed and methods used to assess each possible location are described. The study indicated that the most interesting potential locations are Canada, -Chile, Portugal and the USA for new copper smelting complexes.

Jan 1, 1983

By Arnold P. Szaj

There is no startling revelation to the fact that the mining industry as a whole is generally moving toward the use of larger equipment to process ores in quantities far greater than what was even considered a decade ago. Trucks and shovels have led the way in extra large machines and many other manufacturers have followed suit in the development of so-called "supers" in their line of equipment. In order to keep pace with the industry, crusher manufacturers have also enlarged the size of their equipment. There is now on the market, a Gyratory crusher capable of accepting a 72" diameter piece of ore. Primary jaw crushers have also increased in size. It is inevitable, therefore, that larger secondary cone crushers would also be required to complement the other equipment used to process these large quantities of ore. This super-size secondary cone crusher is the SYMONS 10 Ft. Cone Crusher. Until 1973, the largest cone crusher built was the 7 Ft. Extra Heavy Duty crusher, which is currently used in the majority of the mining operations throughout the world. The 10 Ft. crusher, when compared to the 7 Ft. Extra Heavy Duty Crusher, is approximately 1-1/2 times larger in physical dimensions; three times heavier; will accept a maximum feed size which is approximately twice as large; and will crush at approximately 2-1/4 times the rate of the 7 Ft. machine at identical closed side settings. It will be the largest cone crusher built in the world. At the present time, Rexnord's Nordberg Machinery Group has accepted an order for two 10 Ft. Standard cone crushers to be delivered to an iron ore mine in South Africa in early 1975.

Jan 1, 1973

Jan 1, 1966

By Ron Ketterling

We will discuss electronic and paper record keeping, what works and what doesn’t. We’ll review record keeping in light of those five sub-committees: Audit, Awards, Constitution, Ethics and Planning. You’ll come away with concrete steps you can use to improve your record keeping processes

Feb 1, 2020

By AIME AIME

MICA is perhaps our No. 1. strategic mineral problem because of its large requirements in a variety of equipment for use in the military services, and because the principal source of this material has heretofore been British India, a source now threatened partly because of distance and lack of ships. [Block mica and bauxite were added to the "most critical" list published by the W.P.B. on Nov. 6.] No satisfactory substitute has yet been found for most of the uses of mica, which largely involve electrical insulation. Brazil is now our nearest and best major source of this material. No splitting plants have yet been established there but in 1941 we imported about a million pounds of block mica from that country and in 1942 that quantity will be considerably exceeded. In Brazil, mica is found almost exclusively in the pegmatite dikes along the mountain range bordering the eastern part of Minas Gerais. A belt, roughly 180 miles long by 100 miles wide, extends from Theophilo Ottoni to Carangolo. The principal mica-mining districts in this belt are the Governador Valladares area to the north and the Espera Feliz district to the south. The dikes are usually 10 to 50 meters wide and a mile or two long and intrude the old metamorphic schist formation. They are weathered and easily mined.

Jan 1, 1942

By Oliver Bowles

DISCUSSIONS of trade and commerce are generally more comprehensive today than in the past; the problems are approached with a vision unrestricted by national boundaries, and broad enough to comprise the entire world. The extent to which the limited viewpoint that has characterized past ages is yielding to an economy of world-wide scope is exemplified by the Atlantic Charter which blazes a trail in the direction of trade principles that aim to preserve the interest of each individual country in the commonwealth of nations. Its fourth article promulgated the principle that all nations should have access on equal terms to the trade and to the raw materials of the world which may be needed for their economic prosperity. Future developments in reciprocal international trade may have some effect upon the flow of nonmetallic minerals but such effects are not likely to be great because tariffs and trade policies have not affected that flow profoundly in the past. Nevertheless conditions may change and new problems may arise demanding important decisions. Sudden changes are not to be expected, but rather an orderly evolution in which national interests will merit due consideration in establishing broader policies.

Jan 1, 1945

By Walter Renton Ingalls

IN SEVERAL papers and addresses during the past two years, I have dwelled upon some of the economic consequences of the war. The fundamental thought that I have sought to convey is that the world became immensely poorer by the war, not only in material wealth and population, but also in the psychology and morale of the people. I do not see how there can be any intelligent dissent from that statement. All the ideas of post-war prosperity were manifestly fallacious, manifestly fallacious from the outset. If there had been any truth in them it would have followed logically that a great war, with all its destruction of wealth, health and life would be a good thing. Therefore, let us have a great war every ten years or so. Such an idea would be both monstrous and absurd. Assuming then the acceptance of my premise, I have tried to show that the losses by the war could be made good in a short time, i.e., in a relatively short time, only by doing things a great deal better than formerly, and that the accomplishment of such a result called for greater transparency in industry, for industrial cooperation, for thinking in terms of industries as a whole, and for the greater exercise of engineering functions. All of this introduced, of course, the position and psychology of labor. I say frankly that I do not look for labor to contribute any constructive thought to the upbuilding. I neither expect it nor hope for it. This is a pity, for it could do so much for its own economic advancement if it would. However, it never has done so, but rather has benefited only from the exercise of the talents of the few, and the main hope now is to bring it into a passive state, dispelling the resistive fallacies that developed during the war. Let us briefly examine the nature of these.

Jan 1, 1921

By R. Laird Auchmuty

A NUMBER of factors, of varying importance, should be considered in assessing mineral land-here specifically coal land -for tax purposes. (1) Is the coal developed or un- developed'! (2) If undeveloped, is it surrounded by active development in adjoining properties? (3) Accessibility of railroad facilities to the property. Sometimes the railroad itself is of importance. (4) Cost of development of the seam under consideration, whether it can be developed by a drift from the outcrop or whether it will require deep and costly shafts or slopes. (5) Is it definitely known that the coal seam being assessed is of minable thickness and quality on the property? (6) Thickness of recoverable coal from the seam. (7) Quality of the coal. (8) Is the seam being assessed likely to be more costly to mine than other seams in the same district? (9) Is there an active market demand for coal from the seam being assessed? (10) Is the coal held only as protection to surface structures and in such location that it can never be mined? (11) Is the coal in a solid piece or is it in pillars that have been standing for some years as a result of incomplete mining in an old operation? (12) Expected percentage of recovery from the seam being assessed as determined by present mining practice in similar properties. (13) Value of the seam as indicated by sales of similar mineral rights in the immediate district. (14) Current royalty rates of leases for coal in the seam under consideration.

Jan 1, 1939

By John Mills

THREE case histories from professions other than engineering will serve to introduce ideas basic to this discussion. Case (1) Date, about 1900. A young man, B. D. from a three-year graduate course in a prominent divinity school, was for two years a successful pastor of a small church; then friction over theological matters arose with a fundamentalist deacon of the "Bible belt" type. He resigned, returned to his university for a four-year medical course, interned for two more, and thereafter was successful and apparently happy as a physician. We may assume that he was converted in early adolescence and vowed himself to service as a minister. Acceptance of his announced career by parents, friends, and teachers plus his own determination confirmed his choice until illiberal criticism threatened his usefulness and he awoke to the fact that his inner needs were not along the direction in which inertia and his conscience had constrained him.

Jan 1, 1947

By Douglas F. Stevenson

Your committee doesn't assign any easy topics to us speakers. How do you define "successful" in what is essentially a losing game? I am reminded of the fellow who returned from a one-week vacation in Las Vegas, and proudly stated, "I only lost $150." To him, that was "success." I am afraid that workers' compensation is a losing game for employers, too, and success has to be defined in terms of how much or how little is lost. We have no chance of producing a profit for our employer. We will narrow down to some suggestions about conducting a workers' compensation program at the plant level, but first I want to discuss the general legal, social and legislative climate in which your plant program operates. Workers' compensation is a statutory program with its general parameters established by the legislature. These parameters are then amplified by the boards and commissions established to administer workers' compensation. What influences the legislature and the boards and commissions as they establish the framework in which we must function?

Jan 1, 1986

By Louis H. Meece

The romance of the River lives on in the tales of Mark Twain; and many Americans still think of the Mississippi River in terms of the steamboats loaded with passengers, gamblers and cotton. Yet for many years, coal has been a major cargo on the American waterways. Currently, about 100 million tons a year of coal is handled in some part of its journey from mine to destination by barge. The bulk of this traffic has been on the Ohio River System and the Upper Mississippi River System in years past. Now we have a new entry. Over the past 10 years various movements of coal have developed down the Mississippi River to power plants at Memphis and along the Gulf Coast, and a small amount of metallurgical coal has moved down the Mississippi River for export to Japan since 1970. But in 1980 a brand new player came on the scene. 1980 was a momentous year for the American coal business. Historically, we have exported about 50 million tons a year of metallurgical coal to the world's steel mills. Just before and after World War I, we also had a fairly healthy export trade in steam coal; and again in the late forties, we supplied large amounts of coal to Europe until domestic production could recover from the ravages of World War II. But since the early fifties, the name of the export game has been metallurgical coal. Starting in the mid seventies, something began that was almost totally missed by the American coal industry; and that was the growth in the use of coal first in Europe and now in the Far East as a steam product and as an alternative to petroleum products. As these world coal markets began increasing, the U.S. at first was thought to be noncompetitive because ocean rates were still very low. For example, as recently as 1977, Australian coal could be moved all the way from Australia to the Gulf Coast for $12.50 per metric ton. Coal exporting countries were Poland, Australia and South Africa, except for the continuing exports of U.S. high quality metallurgical coal. But then came the second oil shock, and all of the sudden that $12.50 rate from Australia to the U.S. Gulf became $25.00. And then suddenly and almost unrecognized by the American industry, American coal was in fact competitive at overseas destinations because of the drastic change in trade patterns brought on by the doubling and tripling and quadrupling of bunker fuel prices for ships.

Jan 1, 1982

By Yasser Ghobara

Phosphorus is a problematic impurity that has challenged steelmakers for decades. Steel producers have developed specific technologies to eliminate phosphorus prior to and during steelmaking. These process technologies reduce phosphorus to various degrees and increase the cost of making steel. The state-of-the art dephosphorization technologies are described and operating costs compared for each of the established technologies. Costs are discussed in terms of price penalties for high P iron ore and selling premiums for low P steel. From this, strategies to control P in a cost effective manner are described.

Aug 17, 2017

This paper discusses equipment replacement strategies and specifically addresses the upgrading of technologically superseded equipment. The process of equipment replacement evaluations is reviewed, and areas have been highlighted where currently accepted practice results in a bias towards retaining existing equipment longer than otherwise justified. The Discounted Average Cost Method is described and the advantages of the technique for this style of decision making discussed. Several key issues influencing the replacement evaluation are also presented together with examples from recent consulting work.

Jan 1, 1992

During the second quarter of 1983, the economic recovery showed further strength abetted by the performances of consumer spending, residential investment, and the slowing down of inventory reductions. Real gross national product (GNP) increased from the first to second quarter at an annual rate of 9.2 percent, compared with 2.6 percent from the fourth quarter of 1982 to the first quarter of 1983 and an overall 1.9- percent decrease in 1982. Total industrial production increased 1.8 percent in July, and productivity as measured by output per man-hour increased 1.3 percent between 1982 and the first quarter of 1983 (table 1). Especially noteworthy .was the performance of real consumer durable goods expenditures, which increased at an annual rate of 32.0 percent from the first to the second quarter (about half of the increase consisted of automobile sales) and real consumer spending, which increased between these periods at an annual rate of 9.7 percent. Residential investment increased at an annual rate of 76.1 percent between the first and the second quarters,1/ and private housing starts by about 38,000 units in both March and May.

Jan 1, 1983

By Hillary W. St. Clair

Mining activity began in colonial times with ironmaking operations scattered along the eastern seaboard. Iron furnaces and forges manufactured iron implements from bog iron ores using charcoal from the extensive forests as a fuel. Lead ores were mined in the Mississippi Valley and copper ores in the Lake Superior region. However, the real beginning of the American mining industry did not occur until the 19th century. The history of American mining is organized around three epochal events. The first was the discovery of gold in California in 1848, which marked the beginning of a period of apprenticeship in mining and metallurgical techniques. The second was the discovery of the fabulous Comstock Lode in western Nevada in 1859, which expanded mining throughout the Far West and led to large-scale underground mining and the development of smelting techniques for lead, silver, and copper ores. The third event was the building of a transcontinental rail-road system after the Civil War, which brought about the consolidation of the industry from a large number of independent mines, mills, and smelters into integrated operations run by large corporations. Thus developed the mining industry that today supplies the energy and critical materials for the great-est industrial complex the world has known.

Jan 1, 1977