ALS Minerals Iron Ore Technical Centre IOTC Capability Statement
Profile of the Ore Minerals Recovery Industry ©2011 Dr. B. C. Paul.
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Transcript of Profile of the Ore Minerals Recovery Industry ©2011 Dr. B. C. Paul.
Profile of the Ore MineralsRecovery Industry
©2011 Dr. B. C. Paul
The Commodities• Some materials have clearly defined
specifications for processing that are standard around the world
• The materials tend to be high in value compared to transportation cost
• The Market is dominated by exchanges where buyers go to meet sellers and bid competitively for goods.– Mining Companies tend to be at the mercy of bid
prices on the exchanges• Most metals fall in this category
Market Units
• Most high value standard trade commodities sell by the lb or kilogram– Even though much of world is on metric still have
a lot of things prices by pounds and dollars
• Some lower value such as iron or steel are actively markets by the tonne– Most commonly metric tonne although short ton
is important in the US
Open Market Contract Minerals• Materials do not have extensive refining and processing costs and
specifications differ for different sources• Materials are traded by individual negotiations between buyers and
sellers as well as sales on “spot” markets• Markets are large and needs widely common between buyers• Products may be low enough in value that shipping costs can
influence economic competitiveness• Coal is an example
– Value not only tracks coal but competing energy sources such as oil or natural gas.
• Aggregate is another example– Buyers set standard specifications for size consist– Generally there are distinct limitations on transportation cost and
feasible marketing area.
Marketing Units
• Predominantly the ton– What ever kind of ton is most common unit of
trade in that part of the world• Market reach is often not as international because of
the cost of transportation relative to the value of the material
Buyer and Seller Negotiated and Marketed
• Some materials do not have widely alike markets with semi-standard specifications
• Seller often has to “hustle” up his own market with a specific buyer (or buyer may have to “hustle” up a supplier)
• Often there are problems both on economic transportation range and where buyers and sellers are located– Economic value of a deposit may be a function of whether
the right kind of buyer is in the area.– Buyers and sellers may be captive to each other
• Industrial Minerals are often in this class.
Marketing Units
• Because the specification as well as the sale agreement is custom the unit can also be custom– Lbs and tons are still often used.
Controlled by Downstream Processing
• Powerful market cartels control processing and distribution– Most of the value comes from value added
downstream and the degree to which the cartels can corner the market and “create” a consumer demand
– Mining is often controlled by small scale poor artisan miners using primitive mining techniques
• Only the largest markets attract corporate suppliers• Most of the supply relies on placers where nature has
broken down rock and left minerals behind.
The Gemstone Market• Large scale markets have got some big players into
diamonds– Placer deposits no where near large enough to meet demand /
required organizations capitalized to go to insitu rock sources• Tanzanite
– Only one deposit – yet one top 5 gemstones– Started out with artisan miners but becoming more dependant
on better capitalized company (Tanzanite One)• Downstream marketers control• Tanzanite One turns over about 27 million a year• Finished stone market is about 1.2 billion
• Much of colored stone market is poor artisans mining placers with similar weighting of the price of raw and finished goods.
Marketing Units
• The Carat– 0.2 grams– It is a weight unit– See example display for an idea of the size of a
carot
• The Point– 1/100th of a carat– Used for smaller stones
Making of a Market
• Clear Sparkling Stone – “Diamonds are Forever”
• How to make a stone sparkle– High refractive index
• Refractive Index = Speed of Light Vacuum/Speed in Material• Materials that really slow light down will bounce back more of the
light in the face of the viewer – perceived as “sparkle”
– Cutting faces on the stone at the proper angle
The Critical Angle
If light strikes an edge outside the critical angle (24.5 degrees in a diamond) itBounces back into the diamond. If it hits inside the critical angle it refracts out.The idea is to take the light that comes into the diamond and bounce it aroundSo it comes out the top and gives additional sparkle!
Cleaving A Diamond for Perfect Proportions involves waste
Not Mucking Up the Light Transport Path
• Imperfections reduce light that passes through
• A lot of little flaws makes a stone opaque• Lesser degrees are translucent• More transparent the inclusions just muck up
the clean clear appearance.• Property is called Clarity
– Internally flawless means you can’t see flaws even with a 10X lens
Good Clear Color
• Coloration obstructs the amount of white light that you get
The Diamond Color Scale
Dispersion and Fire
• It is not enough to blast sparkles of clean white light• Want a little color separation so it will sparkle with a
range of colors – called fire• Different colors of light actually travel at different
speeds and are slowed down by different amounts (that’s how a prism works)– Take refractive index for 687.6 nm (red) and subtract the
refractive index for 430.8 nm (violet)– Result is the Dispersion of the stone
Crystal Structure and Birefringence
If crystals have structure in one direction but notPerpendicular to it it will divide the light and give twoRefractive indexes – difference is called birefringenceIt can make the sparkle a less clean double image – cubic crystals prevent this
Diamonds are for Never(They are not the champion of sparkle and fire)
(Of course if you are in marketing you can always call those who beat you fake)
Refractive Dispersion Bifringence
Index
Moisasanite 2.648 0.105 0.043
Rutile 2.63 0.28 0.287
Diamond 2.418 0.044 None
Strontium Titanite 2.41 0.19 None
Cubic Zirconia 2.17 0.06 None
Zircon 2.02 0.038 0.059
Gadolinium Gallium Garnet 1.97 0.045 None
Yittrium Aluminum Garnet 1.83 0.028 None
Sapphire 1.77 0.018 0.008
Tourmaline 1.666 0.017 0.03
Danburite 1.636 0.017 0.006
Beryl 1.6 0.014 0.008
Quartz 1.55 0.013 0.009
Pollucite 1.525 0.012 0.018
Glass 1.5 0.01 0.002