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By Rodney G. Ravenscroft

Leasing is not a new phenomenon. Experts have identified its origins as early as biblical times. It is a method of finance that has grown rapidly and is now used in most countries, including those of South East Asia, South America, the Middle East and even the People's Republic of China. Internationally, the leasing world divides fairly easily into two groups and this is determined, by and large, according to whether a country has Anglo-Saxon origins or not. Most of the Anglo-Saxon countries have seen tax-oriented leasing become a sophisticated means of financing the acquisition of large and costly items of equipment and large projects. Countries such as France, Spain and Japan have a highly developed leasing industry but it is not tax-oriented. This paper will not address leasing of this kind. LEASING - THE CONCEPT Wide acceptance of leasing as an alternative for financing capital equipment has grown with the recognition by the users of equipment that it is use and not ownership that generates profits. Whilst this seems obvious, memories of repossession of assets during the Depression and attitudes towards leasing as "last resort financing" have raised strong philosophical resistance that has only recently begun to be overturned. A financial lease is a commitment by way of contract between a user of equipment (lessee) and a financial owner (lessor) under which the lessee makes a series of payments in return for use of the equipment. The lessee is acquiring economic value associated with ownership but not ownership of the equipment itself - that remains with the lessor. A lease is a method of financing the use of an asset; other methods finance the assets themselves. It is the taxation aspects that then become important. The lessee is giving up some or all of the taxation benefits of ownership such as depreciation and investment tax credits. The lessor claims these benefits, as he is entitled to do as owner, and takes them into consideration when determining the level of lease payments that are necessary to generate his required rate of return. These lease payments are, of course, lower than they would have been without those taxation benefits. The lease payments themselves are fully tax deductible. This is tax shelter leasing. The lessor is acquiring taxation deductions that are applied fully and immediately against his other taxable income so as to reduce the amount of tax he is to pay to the revenue authorities. It is this concept that makes financial leasing work. Governments provide incentives by way of tax concessions to encourage capital investment. Governments presume that prudent capital investment will offer employment opportunities, generate sales and streamline economic activity. These, in turn, will lead to the collection of government revenue. It makes no difference at all whether these incentives are claimed by a commercial or industrial owner/user or by a financial owner who makes equipment available for use by industry. Rather, the issue is to ensure that if an incentive is available, it is used so as to achieve its desired results. No greater or lesser incentive is available for leasing and leasing does not misuse the taxation aspects of equipment ownership. The critical issue is whether the full value

Jan 1, 1985

By E. L. Affleck, W. G. Stevenson

In both Canada and the United States, a company making a public offering of securities must comply with regulations which have been passed by Federal, State and/or Provincial Legislatures. These regulations usually require the distribution of an acceptable prospectus which provides essential background information about the issuer, the project and the share offering. when the public offering has been accepted, the unlisted company may then seek a listing of its shares for trading on a Stock Exchange. Once listed, the company will be subject to rules of the Stock Exchange. This paper will deal with the specific information required for inclusion into a prospectus being submitted for a resource company and particularly those parts of concern to mining engineers and geologists.

Jan 1, 1985

By George S. Barnett

The Equis and El Roble projects are located in the Cordillera Occidental of Colombia. The Equis vein deposits have sulfide ore reserves of 95,955 mt (105,770 st) grading 8.51 g/mt (0.248 oz/st) gold and 12.4 g/mt (0.36 oz/st) silver with 0.94 % copper, 1.10 % lead and 11.06 % zinc. Ore reserves at El Roble are estimated as 1.1 Mmt (1.21 million st) grading 4.89 % copper and 3.39 g/mt (0.099 oz/st) gold. Geologically possible reserves at Equis may total 1.6 Mmt (1.76 million st). El Roble has the potential to contain several tens of millions of metric tons. Exploration included diamond drilling, trenching, channel sampling, rock and soil geochemistry, geophysics and tunneling. Erratic high grade samples affect the weighting of channel and drill core samples. Secondary reconcentration of gold is also a factor. Sample maps and graphs show the distribution of values to be highly variable. Geostatistical treatment of some of these data gave important guidelines for parameters such as sampling densities, drill hole spacing and confidence limits.

Jan 1, 1985

By Isaac Vera, Hans Ruge

The El Soldado copper mineralization occurs as relatively high-grade irregular ore bodies with assay contacts and with frequent inclusions of barren rock. The sampling methods must be timely for production grade control purposes, as well as accurate and inexpensive. Sampling techniques evolved from sampling dump cars at the haulage level to sampling Scooptrams at the loading pockets. These methods were abandoned in favor of sampling production blastholes. Several sampling alternatives are discussed. These involve the selection of optimum volumes and sampling frequencies while taking into consideration geological parameters and statistical analyses of sampling data.

Jan 1, 1985

By S. A. Shoop, J. J. K. Daemen

Site-specific blast vibration prediction can be more accurate than using a universal prediction equation. Vibrations from 37 blasts were monitored using three seismographs. Data analysis showed that square root, cube root, and site-specific scaling predicted ground motion with equal reliability. Imprecise prediction is caused by geologic and blast variability, particularly, inaccurate delay times. Vibrations at some mines were consistently lower or higher than vibrations predicted from US Bureau of Mines (USBM) equations. Vibration restrictions based on USBM studies could then be too conservative or too lenient. Predominant vibration frequencies were generally less than 50 Hz, but several blasts had significant energy up to 125 Hz. In some cases, energy was concentrated at frequencies corresponding to delay intervals.

Jan 1, 1985

By G. E. Klinzing, S. H. Chiang, R. M. Kakwani

Filtration and dewatering results of -500 µm (-32 mesh) Pittsburgh seam coal are discussed with reference to the microscopic structure parameters, i.e., particle segregation in the cake and particle and pore size distributions at different layers. At low solid concentration of 0.33 kg coal/kg water, a non-uniform cake structure is observed where particle and pore sizes increase from the top to bottom layers in the filter cake. An increase in the solid concentration in slurry produces more uniform cake structure and higher filtration and dewatering rates. Air bubble entrapment in the coal filter cakes is also discussed.

Jan 1, 1985

By P. Somasundaran

Almost a decade has elapsed since the problem of fine particles processing was first discussed at the National Science Foundation workshop in Arden House (Somasundaran and Fuerstenau, 1976). Problems involved in processing fines are as enormous now as they were then. We still lose 20 to 50% of mineral values during the processing of many ores. While the problem's magnitude has remained at as high a level as ever, our perspective on the causes for the difficulties, I believe, has changed. While we do not yet see any grand unified solution to all the problems in this area, I do feel that we are beginning to get an understanding of the basic reasons for the behavior of fines. I would like to share my views on the fundamental reasons for the problems we face. They are based essentially on results obtained during the last few years. A decade ago, I presented the reasons shown in the [Fig. 1] as the causes for the difficulties in separating fines. We have seen the same type of information discussed by others during the years since then. I now believe that these are not the only primary causes. Indeed, they do contribute, but there are other major reasons we ought to recognize. Mass certainly would have its effect, but since microorganisms and even ions can be separated from each other using flotation, provided correct conditions are used. I do not believe that fines 10,000 times bigger suffer fundamentally from their smallness or lightness. Similarly, the surface energy increase cannot be as important a fundamental factor since, theoretically, we should not see significant changes in surface energy until we get down to particles a hundred times finer than we are concerned with. Increase in surface areas, again, cannot be a primary problem except for an increase in reagent consumption. What possibly could be the reasons? I have added these three items to the list in [Fig. 1]: morphology, mineralogy, and surface chemical composition. Differences that I believe are partly responsible for the behavior of mineral fines are those due to alterations in morphology or mineralogy and surface chemical composition with decrease in size.

Jan 1, 1985

By Charles George, Ronald Faul

The cementing process has been used in approximately 2.5 million oil and gas wells to seal, protect and isolate various downhole formations against communication. It has been adapted to other more specialized situations such as solution mining and sealing salt storage reservoirs. The technical literature contains very few papers specifically dealing with the cementing process for these applications, yet there have been many special projects in various parts of the world that are novel. These will be highlighted in this review. This paper also presents a comprehensive review of the various techniques used in cementing wells drilled for the recovery of soluble salts and brines. It also covers the application of cementing techniques to a large number of wells drilled for the storage of hydrocarbons in South Louisiana.

Jan 1, 1985

By Michael Bradbury

INTRODUCTION A major change in financing exports in recent years has been the decreased importance of subsidized export credits, following the commitment of the OECD countries to eliminate the subsidy element. Subsidized export credit rates are now often more expensive than market rates as the financing for exporters has decreased in volume and importance. The forfait market, in recognition of this decreasing importance, provides a rapidly expanding source of nonrecource finance for exporters. The following is a step by step guide to what it is, how it works, its benefits and problems. WHAT IS FORFAITING? Forfaiting is not new. It has been used in Europe for about 25 years to provide export finance for both capital goods and commodities without recourse to the exporter. Although long the preserve of exporters in Germany, and more lately Italy, forfaiting is now used increasingly by exporters in Great Britain, the United States, Canada and Scandinavia. It is a fairly simple operation with easy straight-forward documentation. The transaction involves the purchase by the forfaiting bank of a bill of exchange or a series of bills without recourse to the exporter. These bills will have been drawn by the exporter, accepted by the importer, and will usually bear the unconditional guarantee of the importer's bank. They are normally drawn payable at intervals during the credit period agreed between importer and exporter and are purchased at a discount by the forfaiter. The exporter thus obtains his cash payment and the importer receives his credit period. The forfaiter collects the amount of the bills as they mature directly from the importer. Credit periods vary, depending upon the type of goods and the country and commercial risk of the importer. The period is generally between one and five years with six monthly maturities. The usual forfait currencies are US dollars. Deutschmarks and Swiss francs and others, such as sterling, French francs, and the Scandinavian currencies are being used more frequently. CHOOSING FORFAITING Most types of financing require the continued involvement of the exporter in the financial side of the transaction during the credit period. Forfaiting has certain comparative advantages. In particular, it is possible to forfait 100 percent of the risk without recourse to the exporter, unlike government sponsored export finance schemes, where some retention of the risk by the exporter is required. In addition, exports from country sources do not present problems and forfaiting can also cover trade within the EEC. Other benefits for the exporter are: (a) The exporter's balance sheet is improved; debts are turned into cash thus improving the liquidity of the company and enhancing its cash flow. And there are no contingent liabilities for bills of exchange. (b) If the sales contract is in a foreign currency forfaiting removes the risk to the exporter of adverse movements in foreign exchange during the credit period. (c) Fluctuations in interest rates during the credit period can be ignored since in forfaiting the transaction is usually done on fixed interest rate terms on a discount basis. (d) The political and transfer risks are taken by the forfaiter. (e) The commercial risk is taken by the forfaiter. (f) The costs of administration and collection etc. during the credit period are removed.

Jan 1, 1985

By Stanley W. Ivosevic

The commercial success of this low-grade property by Houston Oil and Minerals Corp. (succeeded in interest by Houston International Minerals, Inc.) resulted from credibility of analytical data furnished by the property vendor upon initial examination and from other favorable geologic criteria in evidence; from negotiation of lease terms not detrimental to project economics; from entrepreneurial exploration management; from an encouraging attitude by the US Forest Service; and from the favorable mining and metallurgical characteristics of the ore body. The potential of the property, but not its location, was brought to the attention of the project manager (the author) by the vendor some time before accepting employment with HO&M. In December, 1977, the vendor granted an examination to the project manager, by then an employee; and a lease to the 15 mining claims embracing the property was executed in April, 1978. (See Fig. 1.) Field work and extensive claim staking in this virgin district commenced in May, with drilling beginning in August. At the point that an apparent discovery was recognized in October, only $98,000-including property payments-had been expended on the project. By April, 1979, the deposit was drilled out on 60-m (200-ft) centers and a preliminary re- serve estimate, discounted cash-flow analysis, and recommendations for mine development and additional exploration submitted to management-all at a cost well below budget. The property was recommended for acquisition after matching favorable geologic criteria developed by the project manager. Favorable lithology, structure, and geochemical zonation converged on a subdued low-temperature hydrothermal alteration zone subtly expressed on a pediment surrounding the heart of the property, from which approx [ ]

Jan 1, 1985

By P. Somasundaran

Adsorption of a nonionic polyacrylamide (PAM), an anionic polyacrylamide with sulfonate functional groups (PAMS), and a cationic polyacrylamide with amine functional groups (PAMD), on hematite was investigated as a function of different solution conditions. Adsorption results indicate that the major mechanisms of adsorption of polyacrylamides on hematite is through hydrogen bonding, with electrostatic forces playing a secondary role. All the polymers exhibited irreversibility of adsorption upon dilution. Also, entropic effects were determined to be important in adsorption. Surface chemical properties of hematite and solution chemistry of the polyacrylamides are considered to explain the polymer adsorption behavior on hematite.

Jan 1, 1985

By Geoff Blight

Jan 1, 1985

By J. D. Miller, M. B. Mooiman

It has been discovered that gold can be extracted from alkaline cyanide solution with primary, secondary, and tertiary amines by adding certain Lewis base modifiers, such as organic phosphorus oxides. Under these circumstances, gold can be extracted at about pH 10, commensurate with the pH of cyanide leach liquors. The selectivity of the amines and amine/modifier combinations for Au(CN)[2] over other metal-cyanide complexes is discussed. Potential applications for the solvent extraction of gold from cyanide solutions are also discussed.

Jan 1, 1985

By S. J. Page

Introduction Dust from cutter machines and face drills is controlled in most mines by water. However, the large quantities of water used in metal and coal mines for dust control and suppression pose serious operational problems in water soluble ores, such as salt, trona, or gypsum. This paper reviews the strategies to suppress and collect dust on cutter machines and face drills where water usage must be restricted to very low flow rates - typically 3.78 L/min (1 gpm) or less.

Jan 1, 1985

By C. Richard Tinsley

INTRODUCTION Project financing has been defined by various authors in this book. It is founded on reliance upon the project's own future cash flows and secondarily on the collateral value of the asset base developed. It is chiefly provided by the banking community who, after an assessment of the risks involved (See Chapter 9) analyse the company's presentation (See Chapter 10) in order to structure a financing package often at a leverage of up to 80% debt. This paper describes the various support and structuring techniques used to delimit and abate the risk components perceived from the banks' experience on project development especially for the period before cash flow is generated (pre completion). ADVANTAGES The advantages of project financing extend beyond the offloading of risks to banks. Among the advantages are the following: 1. Longer loan maturity than conventional, unsecured financing; 2. Loan disbursement and repayment tailored to specific mine; 3. Ability of a joint venture without a "track record" to raise financing; 4. Obtain financing where further direct borrowing (corporate credit) limited by existing indentures; 5. Possibility of arranging finance off-balance sheets; 6. Leverage return on equity; 7. Obtain tax savings with certain project financing structures; and 8. Obtain flexible loan repayment conditions. It can also be said that from the point of view of the company, project financing has certain disadvantages which can be summarised as follows: 1. Perceived higher cost (risk premium) compared with straight corporate credit; 2. More documentation; and 3. Need to negotiate risk-sharing aspects. The main attraction of project financing is the ability to pass certain risks on to the lenders within a flexibly funded transaction. (For a more detailed description of the specific risks see the author's paper at the beginning of Chapter 9. The same risk system is followed here.) The typical project financing has corporate support prior to completion and will usually carefully control the resultant cashflow after completion to ensure the bank does not unnecessarily assume further risks of an equity nature. WITHIN THE COMPANY'S CONTROL Operating Risk This is broken into three interrelated segments for ease of description. Technical Component: This must be specifically addressed if new technology or unproven adaptations are to be used. The banks will have scrutinized the sampling and bulk testing work, perhaps grilling the geological, mineral processing, metallurgical, and mining engineering staff or consultants directly. A number of supports are available such as: TECHNOLOGY GUARANTEE: Either the company itself or the process developer will guarantee that the technology will work for a period of, say, six months to two years after startup. If not, then financial penalties will apply although these are rarely sufficient to repay the loan. Many process developers are weak financially and may have little substance to back such a guarantee.

Jan 1, 1985

By Abdel Kadir Attia, Haydn H. Murray, Adel Abdel Azin, Sabah N. Boulis

An extensive reconnaissance survey of bentonitic clays in Egypt was carried out from 1982 to 1984. X-ray diffraction, differential thermal analysis, electron microscopy, and physical property evaluations were used to identify the mineralogy and assess their industrial potential. Samples were collected from a number of localities, namely Qasr El-Sagha (Fayum), Cairo-Alexandria Desert Road (Western Desert), and Qattamia area (Eastern Desert). This paper reviews the geological occurrence, the mineralogical and chemical characteristics, and the potential utilization of these deposits.

Jan 1, 1985

By John E. Hagni, Richard D. Hagni

ORE.ID, a microcomputer program, rapidly searches a database of the principal properties for 573 ore minerals. Searches may be performed on any or all of the following properties: mean Vickers hardness, Talmage hardness, mean reflectance, strength of anisotropism, and colors and tints of the mineral and its internal reflections. Data from the International Mineralogical Association - Commission on Ore Microscopy data card file have been used when available. The program displays the number and type of data matches for each mineral found, displays their chemical components, and allows the range to be narrowed or widened for each of the identification properties for repeated searches, if desired. ORE.ID is much more rapid, allows for the use of more identification properties, and involves more ore minerals than any previous identification system.

Jan 1, 1985

By J. M. Mutmansky, T. K. Greer

This paper takes a look at the optimal velocity to be used in coal mine entries and determines a statistical relationship for optimal velocity that can be applied under current mining conditions. This relationship provides the optimal velocity for coal mine airways under variations in power cost, mining cost differential, airway friction factor, time value of money, airway lifespan, and quantity of air carried. This enables the ventilation engineer to make an easy, rapid determination of the optimal velocity for planning purposes.

Jan 1, 1985

By A. Kavetsky, W. J. Whiten

Data from ball mills with a wide range of diameters are analyzed using detailed mathematical/ numerical models. Analysis shows the relative power inefficiency of large ball mills is due to their inefficient breakage of coarse particles. The models developed can be used to scale-up mill behavior. The behavior of large mills at Bougainville and Pinto Valley is compared. It is concluded that the mills are equally inefficient at grinding coarse particles. Differences in coarseness of total mill feed are shown to account for the fact that Pinto Valley mills achieved design throughput whereas Bougainville mills did not.

Jan 1, 1985

By C. A. Wert, K. C. Hsieh

Measurement has been made of the organic sulfur concentration in coal macerals using microanalytical techniques in the transmission electron microscope. This technique utilizes measurements of x-rays emitted by the sulfur atoms embedded in the hydrocarbon constituents and the bremsstrahlung x-rays generated in the matrix. It is a simple technique for thin specimens and yields reliable results. Although it can be used to measure the average organic sulfur content of coal, it is most useful in determining organic sulfur in extremely small volumes of material. Variations in organic sulfur content can be measured at a scale unimagined earlier. This TEM technique also has application for determination of organic chlorine, phosphorous, potassium and other elements often found distributed through the hydrocarbon constituent of fuels.

Jan 1, 1985