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By AIME AIME

EVEN though most of the program of the joint meeting at Easton, Pa., on Oct. 30 to Nov. 1. was devoted to the interests of combustion engineers rather than to coal-mining engineers, nevertheless the A.I.M.E. Coal Division was well represented, with 83, or close to one third of those in attendance giving this as their affiliation. The fuels division of the American Society of Mechanical Engineers had 108 representatives, and an equal number reported no society affiliation. Added to the men's total registration was that of some twenty ladies so the total attendance was in the neighborhood of 325, exceeding that of the last two joint meetings, at Birmingham and Columbus, and equaling the 1938 crowd at Chicago.

Jan 1, 1941

By A. Frank Alsobrook

DOUG HALBE: Thanks, Terry. And in spite of your introductory comments, I'm going to attempt to continue our hallowed tradition of saying nice things about the speakers. This is really a serious comment now. We, as mineral processing and mill people, don't often talk to people outside our general operating area. One thing that we've tried to do in this operators' symposium is get speakers from various types of plant operations to help illustrate all the things we have in common. Our next speaker is from the industrial minerals area. I think there's a lot to be learned from industrial minerals operations. Some of the people in the last session learned some things about fine grinding in industrial mineral operations. I was a little surprised to see people there grind to 2 microns. Our next speaker is Frank Alsobrook. Frank is another nonmetallurgical engineer. He has a degree in geology, a master's of science from the University of Wisconsin. He's had his own very successful consulting company for a number of years. This is your 11th anniversary, Frank? Very good. He's also the immediate past chair of the industrial minerals division. I think the folks at the speakers' table should be ashamed. You have been so rowdy that Frank chose to sit in the audience. [laughter] We'd like you to come up now, Frank, and tell us some things that you've seen that might be useful to us. INTRODUCTION FRANK ALSOBROOK: The three topics addressed briefly are (1) teamwork and operations modeling, (2) the pitfalls of capital conservatism, and (3) the potential for by-product recovery. Ideas for improvements in these areas are not unique to industrial minerals but apply to metal mining and processing operations, as well. Several additional topics are suggested at the end of the paper.

Jan 1, 1998

By Robert F. Calman

OUTLINE FIVE EXAMPLES OF GOLD-LINKED FINANCINGS 1. Financing the Lupin Mine • Sale of Cdn $40.0 million of 12% preferred shares and Cdn $40.0 million of Gold Purchase Warrants @ $595 per ounce. 2. Financing the Copper Range acquisition • Borrowing 100,000 ounces from a Canadian chartered bank @ US$307 for five years. 3. Financing the Round Mountain expansion • Borrowing up to US $80.0 million in dollars, convertible into gold, repayable over five years from a group of North American banks. 4. Financing the Tenneco Precious Metals Division acquisition •Sale of SFr 110.0 million of ten year 3-718% bonds with warrants to buy 132,000 ounces of gold at US $560. 5. On Forward Sales, Puts and Calls • Gold, Silver, Canadian Dollars, Swiss Francs THE FINANCIAL RULES AT ECHO BAY 1. Never bet the company 2. Equity is the primary form of capital for a gold mining company 3. On debt 4. The Yardsticks for Corporate Decisions 5. Financial Community Relationships 6. Dividend Policy No Text Available Tables Follow

Jan 1, 1990

By T. Uysal

The increasing demand for rare earth elements (REE) in highly strategic sectors such as hybrid electric vehicles, renewable energy, communication technologies, and the defense industry has made REE production methods important. In recent years, studies on REE have increased rapidly; however there are many studies on REE, there are not enough studies in the literature on the economics of the beneficiation process. RE ores are generally leached after beneficiation by gravity, magnetic and flotation methods. In this study, direct leaching, attrition scrubbing and leaching, and flotation and leaching methods are evaluated economically based on the data for the Mountain Pass (MP) facility. According to the sensitivity analysis performed as a function of capital cost (CAPEX), operating cost (OPEX), and rare earths oxides (REO) recovery, REO recovery has the biggest effect on the process economies. Although the flotation method entails additional investment and operating costs, transportation and operating costs are significantly reduced result of the higher grade and recovery. The flotation method is more profitable, with larger NPV and IRR values and a shorter payback period.

Jul 2, 2022

By F. M. Clement

British Columbia, unlike the Prairie Provinces, cannot lay claim to vast prairies. She can, however, claim many valleys, uplands and plateaus that are capable of marked agricultural development. It has been said that British Columbia is not an agricultural province. This may or may not be true, but at the present time agricultural production in this province stands second only to that of forestry. The industry has advanced from a total production of 8 millions in 1908 to a total production of 60 millions in 1924, a total increase of approximately 650 per cent in 16 years. In the last 10 years production has increased from 30 millions to 60 millions. No other industry can point to such a rapid development. In 1908 British Columbia imported 12 million dollars worth of foods compared to the 8 millions which were produced at home. In 1924 she imported 20 million dollars worth of foods compared to the 60 millions worth produced at home. In addition we exported foods to the value of approximately 10 million dollars. British Columbia is therefore self-sufficing in-so-far as values ar.e concerned except for approximately 10 millions of dollars. It is not to be expected that this province will ever grow all the coarse grains that she may require: these, along with certain meats, will always be a heavy item in the imports. We are concerned at the present time more with the value of the products than with the quantities produced: in other words, with quantities only in-so-far as ? quantities improve value.

Jan 1, 1925

By M. C. LAKE

THE industrial development of the United States has been stimulated by the presence of high-grade iron ore in the Lake Superior district. These great deposits have been susceptible to economical extraction and are conveniently located for cheap lake vessel transportation to the great consuming centers. The district furnishes from 80 to 85 per cent of the iron ore annually consumed in the United States, and a full understanding of the available supply of this great commodity is so important that it is well to consider whether or not the industrial supremacy and national independence attained as a result of the abundance of cheap ore are permanent. The enormous deposits of high-grade ore available in the Lake Superior district have been the foundation upon which the vast industrial structure of the steel and allied industries has been built. It is extremely important to the country as a whole, and especially to those States and communities now dependent on Lake Superior ore for their prosperity, that their industries shall retain the particular advantages with which they are now endowed, and that a generous supply of high-grade raw material be available for their consumption at a satisfactory cost. The steel industry is so basic and fundamental that any fluctuation in the cost of its finished products as determined by the supply and cost of the raw materials involved in its manufacture will necessarily affect the business of a wide variety of industries which are dependent on it.

Jan 1, 1926

By R. J. Sweigard, R. V. Ramani

The effects of postmining land use planning are addressed in this paper. These effects may include savings in reclamation costs and increased value of reclaimed land. However, this may result in greater planning costs and possible delays in production. Therefore, an economic analysis was undertaken in an effort to determine the importance of each potential result and to quantify the overall economic impact of postmining land use planning. A discounted cash flow analysis was performed using a surface mine cost model to analyze the sensitivity of selling price to changes in various postmining land use planning parameters. As a result of this analysis, it was determined that the profitability of a project is most sensitive to delays in production, particularly if the delay occurs after major investments have been made. Many methods have been proposed for evaluating postmining land use alternatives (Sweigard and Ramani, 1981). Both quantitative methods, such as benefit-cost analysis (Brock and Brooks, 1968), and nonquantitative methods have been proposed. The application of one specific analytical method is pursued in this paper.

Jan 1, 1988

By R. J. Sweigard

The effects of postmining land use planning are addressed in this paper. These effects may include savings in reclamation costs and increased value of reclaimed land. However, this may result in greater planning costs and possible delays in production. Therefore, an economic analysis was undertaken in an effort to determine the importance of each potential result and to quantify the overall economic impact of postmining land use planning. A discounted cash flow analysis was performed using a surface mine cost model to analyze the sensitivity of selling price to changes in various postmining land use planning parameters. As a result of this analysis it was determined that the profitability of a project is most sensitive to delays in production, particularly, if the delay occurs after major investments have been made. Many methods have been proposed for evaluating postmining land use alternatives (Sweigard and Ramani, 1981). Both quantitative methods, such as benefit-cost analysis (Brock and Brooks, 1968), and nonquantitative methods have been proposed. The application of one specific analytical method is pursued in this paper.

Jan 1, 1985

By Chester O. Ensign

Many publications to date have advocated under- seas mining operations, optimistically overlooking the paucity of information on mineral distribution and the ocean environments in which minerals occur. Such articles (smattered with opinion, as is this article) are herein tempered by my more conservative views on the economics of mining under the seas. For purposes of this paper, underseas mining refers only to the deeper surficial deposits of the continental shelf and the deep sea floor, i.e., the deposits of phosphorite and manganese nodules.

Jan 9, 1966

By Gerald Blackmore

"This paper suggests that with the settlement of long-term contracts of fifteen years' duration, with prospects of extension, the coal mining industry has, for the first time, a complete commercial justification for large-scale planning.The labour costs of coal production over past years are analyzed and, with the acceptance of the premise that the basic shift rates are certain to rise in the years to come, the paper suggests that forward planning should provide &r capital investment to make a traditionally labour-dense industry into a capital-dense industry.Automated methods of manpower deployment and timekeeping and the monitoring of all equipment back to a central control point are discussed as ail-important means of obtaining maximum utilization of high-cost capital investment.Principles of payment of the work-force, and the utilization of equipment 24 hours a day, seven days a week and the maximum number of days a year, are dealt with as means of achieving maximum capital utilization. Some of the new technical underground and coal preparation problems which will undoubtedly result from the concentration of workings and maximum machine utilization are discussed, and the author makes suggestions as to how these might be solved.In short, the author predicts that if the coal mining industry is prepared to recognize the problems and invest in modern equipment backed by highly trained staff. then the outcome will justify the high capital investment involved. He stresses the importance of human communications in achieving this end."

Jan 1, 1970

By Hu Harries

WE RECENTLY completed a study for a client, who is an applicant to export gas from the Province of Alberta, on the effects of gas export on Alberta's economy. This study was part of the client's application ?before the Conservation Board, and, no doubt, some of you are familiar with it. Submissions by other applicants in earlier hearings before the Board and before the Royal Commission on Energy, as well as claims made by parties opposing export, have also brought forward a number of other opmwns regarding possible economic effects. Ali of these studies have been on a piecemeal basis. They have dealt with particular aspects of particular applications, and only indirectly and by inference with the overall question of gas ex-port. We have prepared this paper to review the overall picture and ex-amine, as far as time permits, all sides of the question. While the paper is entitled Economic Effects of Gas Export on Alberta, we felt that the area considered should in-elude northeastern British Columbia, not only because Westcoast, the first major gas export project, is essentially a northeastern B. C. project, but because this area has historically been, from the point of view of economic, if not of political, geography, part of Alberta. In this paper, when we talk of export, we mean export from the Province or, in this case, from Alberta plus northeastern B. C. Sales to other parts of Canada have exactly the same effect on the economy of this area as l1ave sales to the United States, provided, of course, they are made on equal terms.

Jan 1, 1958

By Felicia F. Peng

An economic analysis for evaluating coal preparation plants in the Appalachian Region is presented. A complete coal preparation plant which includes multi-streams and/or multi-stages coal cleaning circuits, complete closed water circuits, environmentally acceptable refuse disposal and reclamation systems is used to determine the capital and operating costs. The plant is capable of producing metallurgical grade clean coal or deep cleaned steam grade coal for future power generating plants use. Utilizing a profit maximization as a decision criterion, an optimal yield, and optimal coal clean¬ing circuits, closed water circuits, and disposal and reclamation systems for a given coal characteristic may be selected among the process alternatives by using a process simulation-economic model of the coal preparation plant. A deterministic analysis is used to calculate the discounted-cash-flow interest rate of return (DCFIROR) and project the selling prices, and determine the Return on Investment (ROI) for the cases of 32.65% and 52.74% plant utilization with producing two cleaned products. Sensitivity analyses are performed to quantify the effect of total capital investment, operating cost, run-of-mine cost and yield on an economic criterion-ROI and selling prices. A probabilistic evaluation using the Monte Carlo simulation technique is further made to quantify the risk involved in obtaining the desired profit levels. The results of the economic analysis for a given coal preparation plant configuration and characteristics of raw coal indicates that the selling prices of producing two cleaned products are greatly affected by the change in percent of plant utilization (production schedule), yield, and run-of-mine cost, and total capital cost. The sensitivity analysis also shows that the total capital investments has a three times greater effect on required selling prices than operating costs. The risk analysis shown that the overall economics look very attractive with current coal sale prices and 52.74% plant utilization.

Jan 1, 1979

By F. F. Peng

An economic analysis for evaluating coal preparation in Appalachian Region is presented. A complete coal preparation plant is used to deter- mine the capital and operating costs. Using profit maximization as a decision criterion, an optimal process flowsheet for given coal characteristics can be selected among the process alternatives by a process-economic model. A deterministic analysis is used to calculate the discounted cash flow interest rate of return and project the selling prices of clean coal products. A probabilistic evaluation is further made to quantify the risk involved in obtaining the desired profit levels.

Jan 1, 1979

By Raja P. Upadhyay

An evaluation of the economics of mining the deep, thick oil shale deposits of the central portion of the Piceance Creek basin, Colorado, U.S.A. is presented in this paper. For the analysis, a modified large scale underground mining system developed by Cameron Engineers, Inc. and the Gas Combustion retorting process developed by the U.S. Bureau of Mines were used to determine capital investment and annual operating costs. A modified risk analysis computer program was then used to calculate DCFROI’s for various grades of oil shale and selling prices of partially refined shale oil. Sensitivity analyses were performed to quantify the affect of bonus bid payments, operating costs, capital investment, and all costs on DCFROI. In addition, a probabilistic evaluation was made to determine the risk involved in obtaining desired rates of return. Results of the economic evaluation indicate that for current selling prices of crude oil a high risk is involved in obtaining a DCFROI of 15%, unless only higher grades of oil shale are mined. However, mining only the higher grade oil shales, 125 l/mt (30 gpt) and above, would effectively reduce the potentially mineable resources by 90%. Risk can also be reduced through higher selling prices of shale oil. Sensitivity analyses indicate that the capital investment has a three times greater effect on required selling price than total operating costs.

Jan 1, 1977

By J. R. Evans

Mining claims must have a discovery of a valuable mineral deposit to be valid. When required, a Federal government mineral examiner makes a determination of validity and recommendations thereof to authorized management officials. The examiner should show whether or not an existing mining operation, or a proposed operation have economic viability. This is accomplished through an analysis of legal entities, land status and use, geologic and mineralogic relationships, and mining, milling and processing techniques considered in an appropriate economic evaluation framework. A framework involves market and market entry studies, reserve analyses, all costs analysis, royalty buyouts, tax structure, discount rate of return, and escalation and risk factors. An income approach to value is then used by means of a simple or complex discounted cash flow (DCF) analysis to certify validity. Whether one claim is owned by a single miner, or hundreds of claims are owned by a large corporation, thorough, fair, consistent, and appropriate economic concepts should be applied by the mineral examiner.

Jan 1, 1993

By A. E. J. Gallagher

There are many influences which have a bearing on the economics of industrial minerals production. The purpose of this paper is to discuss briefly three factors which have economic significance in the production of these mineral commodities. The three items of discussion include 1) the nature and relative value of the industrial minerals group, 2) project planning, and 3) market analyses. General aspects of these factors are familiar to most of us. However, an attempt will be made to give some current details regarding each. Also, in reality, project planning and market studies are usually so closely associated that they will be discussed jointly, rather than separately. This will be done by way of examples which show how these two activities actually evolved for two industrial minerals projects.

Jan 1, 1984

By Brian W. Mackenzie

The paper addresses five questions concerning the economic of gold exploration in the western Canadian shield. Can historical footprints be used to project future gold prices for exploration planning? Experience suggests that gold price forecast are too clo ely tied to current market events to provide meaningful guidelines. What range of breakeven gold price will typically be required to ju tify gold exploration in Canada? Minimum price requirements. initially asses ed at $540 to $1080 per ounce, probably lie in the range of $480 to $760 per ounce (expressed in 1985 Canadian dollar). Within Canada, what role do regional conditions and taxation policies play in determining the viability of prospective gold exploration targets? Striking interprovincial differences are found to exist, given the same geological circum tance -Nova Scotia, ew Brunswick, and Quebec rank towards the top in term of motivating exploration, Briti h Columbia provides the least investment incentive, while Saskatchewan and Manitoba place around the middle of the Canadian league. How can minimum acceptable tonnage-grade conditions for gold targets in the western shield be established and, then, constructively applied to provide exploration planning guidelines? Minimum target conditions, realis tically defined in terms of a broad band of doubt, can be used judiciously to help balance the direct costs of uneconomic exploration with the opportunity costs associated with rejecting economic deposits. How does the average cost per ounce of gold discovered in the western shield compare with the overall Canadian experience? Average discovery costs for the we tern shield, apprai ed at $100 per ounce, are shown to compare favourably with the Canada-wide record.

Jan 1, 1986

By Paul M. Tyler

OF THE 92 elements generally accepted by chemists as constituting the primary building blocks of matter, all but the very rarest have been investigated with a view to employing them in steel manufacture. The surprising thing is that so few have been found commercially acceptable. Despite the relatively small number of elements involved, the use of alloys in steel making is one of the most complicated and probably one of the least well understood of modern industrial enterprises. The action of individual elements in steel making has been described often and a profuse and somewhat acrimonious literature covers pretty much the whole field of ferroalloy ore supplies. In the middle ground between the miner and the -steel maker developments are less carefully watched by most observers and except for an occasional description of the technique of some conversion process or the tariff hearings in Congress, little is said about them. The present paper has been submitted in the hope that it will stimulate broader constructive economic thinking. It undertakes to describe in' relatively nontechnical terms this great and growing though highly complex industry and to study its relations to national progress.

Jan 1, 1932

By Thomas T. Read

THE benefits derived from stabilization of industry that might possibly be attained through some scheme of centralized economic planning have been much discussed of recent months, and opinions on the subject range from those who believe that some agency like the War Industries Board would be practicable to create and wholly beneficial in effects, to those who are equally convinced that none of the suggestions so far advanced are at all practicable, or likely to be productive of more of good than of evil. The discussion has been on the general topic, but-many of those who have written or spoken on it have introduced economic problems of the pinera1 industry; for example, Newton D. Baker, who referred to the coal industry in his address on economic planning at the Williamstown Institute of Politics on July 31, and then went on to say, "Industrial progress is made by the development of new things, but new things upset the equilibrium of any plan. Who could have planned the industrial effects of the development of the railroads, or the economic changes which you have seen attend the development of the internal combustion engine. Obviously, unless we are prepared to put world economics in a strait-jacket and, like the encyclopedists, write its full history on the theory that further progress is impossible, no such plan could be made for nations which are forging ahead as is entirely rational for nations which are still catching up."

Jan 1, 1931

By E. H. Crabtree

IN an ideal mill, with perfect milling operations, the mineral extraction would be 100 per cent, the, concentrate would be 100 per cent mineral, the tailing would assay zer.0 mineral and the milling cost would be zero dollars. Such an operation can, of course, never be attained. We can only strive to approach it as nearly as possible and in doing so most recognize .the fact that the three primary factors in milling: assay of concentrate, assay of tailing, and cost of operation bear a definite economic relationship to each other. This relation will change from time to time and will be different for different mills, depending on milling equipment, character and quality of feed, market conditions, and other factors. It is granted that for a given operation there is an economic point, but the location of this point is difficult. It is for the purpose of making some of these economic points a little more tangible that this paper has been prepared.

Jan 1, 1930