Chapter 2.

5
INVESTMENT STRATEGY FOR MINING PROJECTS
D ENNIS A RROUET

Investment decisions in the mining industry, as in any other, 2.5.1.5 Profile

normally focus on numerical methods comparing alternative
investments. While these methods are important, the process of Projects are usually “high” profile wherever they are located
investment strategy, making the investment, and operating a because they are “natural resources.” In some countries, they
project during its economic life, involves much more. Many key often get much more media and political coverage than they
people in various disciplines provide varying degrees of input might elsewhere. If this situation exists, or may come to exist,
over the life of the project, and their input can play a major attitudes and business ground rules can change very quickly;
role in the investment strategy process. This chapter reviews what appears to be a good investment one day can quickly
principles and concepts covering investment within a home coun- become less attractive.
try and in foreign countries, showing how these many and dispa-
rate elements blend together and change over time. It is comple-
mented by coverage in Section 6, Mine Evaluation and 2.5.2 INVESTMENT STRATEGIES
Investment Analysis. Historically, mining investors explored, developed, and op-
erated until the deposit was exhausted. The only question was
2.5.1 MINING INVESTMENTS proving up enough ore to support a profitable investment. While
this strategy has been and can be successful, it assumes little
Investments in the mining industry have many characteris- change during the life of the project.
tics not found in most other industries. These include the fol- Recent dramatic changes in the price and volume of mining
lowing. products, operating costs, and government attitudes, among
other considerations, have led to the reexamination of a once
successful strategy. Under the newer thinking, general ap-
2.5.1.1 Finding or Exploration
proaches to a successful mining investment now include these
Either generative or opportunistic exploration must be strategies.
funded for a company to get/renew investments that will be 1. Cost Leadership. The objective is to have all operating
profitable in the future. These programs, which may be struc- costs for a project below that of average costs in the industry.
tured as individual efforts, partnerships, or joint ventures, take Low costs result from a combination of ore grade, mining diffi-
time to develop good prospects/projects. culty, dilution, economies of scale, development of the operation
including infrastructure, technology, low cost of utilities and
2.5.1.2 Size materials, location relative to markets, and access to low-cost
transportation.
In the past, projects had high ore grades and were easily 2. Differentiation. Here, the product offered is high valued
mined and processed. In the latter part of the 20th century, the and special to the market served.
norm for mining projects was lower-grade deposits, large-scale 3. Focus. The objective is to fulfill a market need ignored by
mining, and processing using high technology equipment. Often others in the industry.
these projects required infrastructure to make them feasible. As 4. Coattails. When an industry has a single or few competi-
a result, mining became highly capital intensive. Projects costing tors, the “new entrant” may be accepted; economic return to the
in the hundreds of millions of dollars are more and more dominant producer(s) can be better (but less than before the new
common. entrant), if the dominant producer(s) cede portions of the market
and maintain price leadership rather than lower price to stop the
2.5.1.3 Life new competitor.
5. Volatility Exploitation. The emphasis is on low fixed costs
Projects generally have very long lives. Many years pass and low start-up and shutdown costs. As a result, in periods of
between first finding ore-grade material, proving up the reserves, high prices, a mine may be operated very profitably. While this
planning the project, and construction. Additional years must strategy may apply to a good mining project that has successfully
pass before capital costs are recouped, and thereafter even more operated for many years, investors may be able to buy shut mines
years are needed for equity investors to make an adequate return. at very low cost, operate the property for a short time, and have
a very attractive investment. Alternatively, developing ore bodies
2.5.1.4 Product with these quick in-and-out-of-operation characteristics could
prove profitable, depending on circumstances and assumptions.
By their nature, mining projects produce a major product,
although byproduct or coproducts are often produced. In gen-
eral, the product produced in the mining process is not sold to 2.5.3 CALCULATION METHODS
the final customer. Rather, this raw product is often sold to
others who, after adding value to it, may or may not sell to the The evaluation of a mining investment starts with the con-
final customer. As a result, demand for “raw” mining products cept that the rate of return over future periods measures the
is “derived” and therefore subject to price and volume swings in financial productivity of capital. In other words, a return of x%
addition to those generated by the final customer. or more would be adequate for an investor. Return has been

96
 INVESTMENT STRATEGY FOR MINING PROJECTS 97
defined many ways over the years. Some of these measures and Returns
their peculiarities are detailed in the following. Accounting
Modern financial theory for measuring return on investment
uses an interest factor to equate cash inflow (outflows) in differ- Average net income 3.3
ent time periods. Thus $1 invested at 10% increases to $1.10 at Return on investment = 16.5%
Investment 20.0
the end of the first year, $1.21 after the second, etc. Similarly,
$1.21 received two years hence has a present value of $1 today, Return on average Average net income 3.3
= 33.3%
“discounted” at 10%. investment Average investment 10.0
Mathematically,
Payback: Years needed for 2 years
2 cash inflows to
FV = S1 (1 + i) + S2 (1 + i) + . . . (2.5.1)
equal cash outflows
Interest
S1 S2 + . . . (2.5.2)
PV = Present value 10% interest rate = $3.1
(1 + i) + (1 + i)2
Discounted cash flow return = 17.8%
where FV is future value, PV is present value, S is cash inflow
(outflow) per period, and i is interest or discount rate. Thus The controversy over what measure to use has largely been
investment returns are calculated by equating cash outflows for resolved in favor of the discounted cash flow method. Each
investment to cash inflows from operations (revenues less all individual or organization may use one or a number of these
cash operating costs, interest, taxes, maintenance and capital return measures to increase communication of “return” to the
expenditures, debt repayment), discounted at an appropriate in- many parties involved with the investment decision. Which mea-
terest rate. sure(s) parties use relates to factors peculiar to their own circum-
Example 2.5.1. stances.
The sophisticated decision maker knows that behind these
Project data (in million dollars) precise calculations are tangible and intangible data that are
Investment year 1 = $10, year 2 = $10 $20 uncertain. To cope with this uncertainty, decision makers use a
Operating cash flow year 3, 4, and 5 = $10 $30 number of techniques including the following:
Depreciation—life 3 years 1. More Accurate Forecasts. A worthy objective, but uncer-
—amount $20 tainty is not addressed.
Debt financing none 2. Higher Cutoff Rate. With a higher cutoff rate, a degree
Capital investment after start up none of risk is recognized as part of an investment. However, the
Solution. probability of returns exceeding the threshold is not recognized.
3. The Base and Most Likely Case. Returns are calculated
Depreciation per year $6.7 using “averages” for input variables. The base case is presumed
Average investment. Investment less one-half total $10 to be conservative, that is, low risk by implication. The most
depreciation likely case is moderate risk.
Average operating cash flow per year $10 4. “What If” Scenarios. A series of returns are calculated
Average net income. Average operating cash flow $3.3 using averages for all but one variable. For example, the base
per year less average depreciation per year case return is run at sales increases/decreases of 5%, l0%, and
15%. While this methodology shows the sensitivity of returns to
Investment Present Value change in specific variables, the likelihood of these events is not
and Operating $1 discounted Revalued quantified.
Cash Flows at l0%* Cash Flow 5. Simulation. Probability curves on each input variable are
developed based on estimates of those most knowledgeable in a
Year 1 (10) 0.909 (9.2) given area, for example, operating cost, selling price, etc. There-
2 (10) 0.826 (8.3) after, a probability is randomly selected from each probability
3 10 0.751 7.5 curve and then used to calculate a discounted cash flow rate of
4 10 0.683 6.8 return. Then the process is repeated many times. The probability
5 10 0.621 6.2 of all anticipated returns can then be graphed as shown in Figs.
3.1 2.5.1 and 2.5.2. Then assessing the project and comparing it to
other projects is easier and more meaningful.
Investment Discounted Cash Flow
and Operating $1 discounted Revalued 2.5.4 COST OF CAPITAL
Cash Flows at 17.8% Cash Flow
For an investment to add value, it must earn more than the
Year 1 (l0) 0.849 (8.5) cost of capital—the cost of debt and equity each weighted based
2 (10) 0.721 (7.2) upon the proportions of debt and equity the corporation targets
3 10 0.612 6.1 for its capital structure over the investment period.
4 10 0.519 5.2 While there are several models for calculating the cost of
5 10 0.440 4.4 capital, each at best is an estimate. The capital asset pricing
0.0 model that follows is the most widely used formulation. For
*Discount factors assume revenue received once per year. Year debt cost, calculate interest on incremental debt with a maturity
1 equals 1 divided by 1.10; year 2 equals 1 divided by 1.21, etc. similar to the investment less tax savings generated by deducting
98 MINING ENGINEERING HANDBOOK

Chances that rate of return will be achieved or bettered

Anticipated rate of return

Probability of achieving
Percent return at least the return shown

0% 96.5%

5 80.6

10 75.2
15 53.8

20 43.0
25 12.6

30 0

Fig. 2.5.2. Anticipated rates of return under old and new approaches
(Hertz, 1979).

annual difference between the rates of return of stocks and gov-

ernment bonds, it is possible to use this factor in calculating a
Fig. 2.5.1. Simulation for investment planning (Hertz, 1979).
firm’s equity cost regardless of the absolute level of interest
rates. Specifically, the equity risk premium is multiplied by an
individual stock’s beta and the result is added to the current
interest from taxable income. For equity cost, calculate the risk risk-free rate of government bonds to determine that company’s
free rate of return, the yield on government securities, plus an equity cost.
equity risk premium, for investing in equities. The yield on gov- Example 2.5.2.
ernment securities compensates debt investors for the “real”
interest rate plus the expected inflation rate. The equity risk Project Data
premium compensates the equity investor for added risk and is Risk free government interest rate 9%
equal to the expected equity market return less the risk-free rate Interest rate on new borrowings 10%
multiplied by the riskiness of the stock or the beta. Betas are Income tax rate 40%
calculated by running linear regression analyses between past Expected return on equity market 15%
returns for a stock and past returns for the market. Then the Beta 1.5
volatility of the stock is compared to the volatility of the market. Capital mix over investment horizon debt 40%
Thus a stock with a beta of 1.20 is 20% more volatile than the equity 60%
market. Betas are published by Value Line, Merrill Lynch, and Solution.
other financial institutions.
In one of the classic studies of long-term investment returns, Weighted
Ibbotson and Sinquefield (1989) calculated the risk and return Cost (%) Weight Cost
of stocks, bonds, and treasury bills and the rate of inflation for Debt 10% – 10% (0.4) 40% 2.4%
1926–1987. According to this study, the historical (1926–87) Equity 9% + (15% – 9%) 1.5 60% 10.8%
arithmetic average equity risk premium of stocks vs. government
bonds was 6.8%. Since the equity risk premium is the average Cost of Capital 100% 13.2%
 INVESTMENT STRATEGY FOR MINING PROJECTS 99
Investment decision making involves more than just deciding personalities and the amount of time assigned to negotiations by
to make a project expenditure or not. The process involves de- others.
termining the amount of acceptable project risk, the financial As the decision-making process approaches the go/no-go
capability of the investing organization, and the risk profile of decision, senior management and finally the board of directors
each investment in its portfolio. Every situation needs to be become more and more involved. By this time, all work is re-
analyzed separately. viewed to check for consistency, risk, and possible omissions or
The corporate objective is to maximize earnings (over the areas that need more work pending the final decision. “Due
cost of capital) commensurate with acceptable risk. However, at diligence” is an investigatory safeguard and is particularly im-
some point in a corporation’s life cycle, the risk profile is altered portant. It covers reserve verification, project risks, projected
due to price and volume changes, competitor actions, etc. These capital and operating costs and their variability with volume,
dynamic changes in the corporation’s risk profile are also present competitive assessment, market analysis, and financial analysis.
in the risk profile of an individual project. The due diligence process is normally conducted again when,
A project’s risk exposure is usually greatest prior to comple- and if, potential equity investors and/or project finance are
tion. But the exposure varies over time, as one would expect, needed. Then money providers are given up to date factually
according to the initial risk profile of the project and subsequent correct data on the project together with a discussion of potential
changes in the dynamic variables affecting the project. The proj- risks.
ect’s risk profile is superimposed on that of the company, and
the relative size of the project will affect its potential impact on
the entire company. Upon completion, the project will have a
proportionate impact on the overall risk profile of the company 2.5.6 PROJECT FAILURES
and, ideally, the periods of adverse returns on the project will
not coincide with the periods of financial difficulty for the rest While failure only happens to others and will not occur in a
of the company. Otherwise, a restructuring of the project and/ well-planned project, history teaches us that financial failures do
or the company may be necessary. Thus, the corporate decision- occur, often despite the best plans. Indeed, the risk of failure
making process must explicitly integrate the project risk profile may increase in the future. First, a number of metal and non-
with the corporate profile. metal mining products that have been relatively price stable now
The decision process also encompasses the entire life of an show more significant price volatility (e.g., gold, aluminum, iron
investment. The find, invest, and hold strategy implies one in- ore). Second, low price cycles are relatively longer at lower
vestment decision. However, in a more volatile world, knowl- levels—at least recently—thereby increasing financial stress.
edgeable decision makers keep track of the value of their invest- Third, increased costs per unit of production and relatively
ment with a view to capturing excess valuation. This “recapture” higher interest rates make financial returns more difficult to
changes the capital structure and the risk profile. It may be done, achieve. Finally, the frontiers for “new” mineral deposits are
for example, through the sale of a partial or whole interest in increasingly in remote areas.
the investment; the excess can be used to adjust the risk profile The causes for financial failure of investment in projects can
of the project and thus the corporation and to create new value include one or more of the following:
by developing or buying undervalued investments, repaying fi- 1. Delays in completion causing delay in revenues.
nancial commitments or paying shareholders. 2. Unplanned capital cost overruns.
3. Technical failure.
4. Failure of contractor(s) and supplier(s).
2.5.5 DECISION MAKING
5. Increased price or shortage of raw materials.
Decision making for a mining investment is a process. It 6. Estimated grades and amounts unavailable due to insuf-
involves decisions within many separate disciplines that are then ficient drilling, complex geology, errors, unforeseen faults, rock
linked together. The initial economic decision is to invest or not competences, etc.
to invest and thereafter to grow, maintain, or disinvest. 7. Technical obsolescence.
Good communication within the organization and with out- 8. Operating failure.
side consultants is extremely important. It speeds decision mak- 9. Loss of competitive position in the market.
ing and it minimizes misunderstandings. But often it is over- 10. Uninsured casualty losses.
looked as a key element that helps the decision process progress 11. Force majeure.
smoothly. 12. Refinancing risk.
Also poor negotiation with outside parties can lead to major 13. Increased taxes, direct and indirect.
problems and unforeseen penalties. The process is critical to 14. Foreign exchange, artificial rates, availability, etc.
every aspect involved in a project. Experienced personnel have 15. Government interference, changes in laws, rules, regula-
a better understanding of what to expect, how to act, and what tions.
to demand. They pay attention to: 16. Expropriation.
1. Organizing Their Positions. They plan for changing nego- 17. Poor project management.
tiation strength, interference by others in the organization, insuf- In hindsight, project failures fit into “nice” categories shown
ficient internal communication, etc. previously. Unfortunately, during a project’s demise, the vision
2. Empathizing with Others. They place themselves in anoth- is rarely clear. While a check list can be helpful, even in retro-
er’s position to understand different ways of thinking; they recog- spect the root causes are often overlooked. These root causes
nize the need for “saving face.” include:
3. Determining the Role of Government. They try to under- 1. The risk profile for each business variable (reserves, capi-
stand the politics, the role for private enterprise in the country, tal and operating costs, competition, etc.) changes during the life
status of businessmen, government involvement in negotiations, of the project.
etc. 2. Sponsors often neglect the vested interests of the project
4. Focusing on the Decision-Making Process. They weigh decision makers, whose future may be enhanced by a project go
economic and political criteria, the role of personal relations and ahead, especially when excessive optimism is expressed.
100 MINING ENGINEERING HANDBOOK
volving purchasers and lenders or their advisors in the early
2.5.7 PROJECT STRUCTURE AND PARTICIPANT
stages of market planning can be critical.
CHECK LISTS
In order to minimize the downside risk of a project, it is 2.5.7.9 Engineering Consultants/Contractors
important to focus on certain key issues at the outset. These Consultants often establish the technical, marketing, and
issues, which relate to the structure of the project and the opera- financial feasibility of major projects Sometimes an overall proj-
tional aspects of the project, are summarized in the following in ect feasibility consultant is used, but the trend has been towards
check list format (also see Fig. 2.5.1). using specialists.

2.5.7.1 Direct Owners 2.5.7.10 Auditors

Parent or holding company structure can have undesirable Auditors (for accounting and taxes) can provide useful infor-
impacts on financing, taxes, risk profile, future restructurings. mation on the proposed ownership and financing structures.
If off-balance-sheet accounting treatment is planned, auditors
2.5.7.2 Ultimate Owners/Completion Guarantors should be involved early in the project.

Completion guarantors could include third parties such as

suppliers, offtake purchasers, and governments (particularly in 2.5.7.11 Legal Counsel
the case of project infrastructure). Project development inevitably involves lawyers. Their areas
of involvement include agreements with customers, major suppli-
2.5.7.3 Domestic Bank Lenders/Guarantors ers, consultants, financial institutions, investors, other partner/
venture owners, governments, etc. In most situations, lawyers
Domestic bank credit or lending is a major feature of most should have prior mining project experience.
project financings. Domestic experience with other projects, lo-
cal practices, etc., can assist in getting the optimal finance pack-
age. In addition, domestic institutions can help support the proj- 2.5.7.12 Financial Advisors
ect with foreign lenders. Investment banks, merchant banks, and commercial banks
have undertaken advisory roles to determine the optimal financ-
2.5.7.4 Foreign Bank Lenders/Guarantors ing for mining projects. For a fee, they will screen, select, and
negotiate terms and conditions with financial institutions supply-
Foreign lenders include all lenders not domestic to the proj- ing funds. In some cases, they will supply their own funds.
ect. Many of these institutions are chosen to lead a project financ-
ing if they are well established domestically. In large financings,
representation by institutions from many countries is encouraged 2.5.7.13 Federal, State, and Local Governments
in less-developed areas. The theory is that the local governments and Their Agencies
will not expropriate, embargo funds, etc., for fear of reduced
Numerous approvals are necessary to obtain a mining lease
funds being available to the country.
to construct and operate a mine. Approvals are normally needed
before loan drawdowns, and all are required before completion
2.5.7.5 Guaranteed Lenders supports are released by lenders. Lenders want to minimize the
chance that government intervention will frustrate a project’s
These are generally export credit agencies, regional develop-
completion and operation.
ment banks, other foreign government lenders, institutional lend-
ers, and occasionally debt participants in leveraged leases. The
parties advance funds under guarantees or standby letters of 2.5.7.14 In-house Expertise
credit, which take the project risk and charge a guarantee fee. Skills are needed in the areas of geology, mining, milling,
Concessional rate and term financing is generally achieved in
metallurgy, operations, maintenance, taxes, legal, financial, gov-
this way, since lenders in this category will not accept project ernmental, etc.
risks.

2.5.7.6 Equipment Suppliers 2.5.8 PROJECT CHECK LIST

Use of equipment from different countries should be evalu- Relative to this check list, see Fig. 5.2.2.
ated. Prices and terms are often more attractive from one country
vs. another.
2.5.8.1 Technical Considerations
1. Land and minerals: lease, ownership, title, royalties, spe-
2.5.7.7 Lessors
cial arrangements.
Leveraged leasing is often used as part of a project financing. 2. Reserves: geologic setting, ore types, geologic reserves
Amount and terms will determine the use of leases. vs. mineral reserves, proven vs. probable reserves, drilling data,
sampling, methodology of reserve calculation.
3. Mining plan: forecasts of grades and material movements,
2.5.7.8 Offtake Purchasers geotechnical test results, equipment to be used, personnel re-
Marketing arrangements can be a critical part of the credit quirements and availability, design assumptions.
supports needed to finance a project, especially where floor prices 4. Processing plan: plant layout, equipment needed, man-
or minimum offtake levels are needed to meet debt service. In- power requirements and scheduling, power requirements.
 INVESTMENT STRATEGY FOR MINING PROJECTS 101
5. Infrastructure: water/power supplies and service avail- land; noise; ecology; power; and hospitals, schools, roads, and
abilities, transport facilities, maintenance workshops, labor community services.
housing. 10. Equal opportunity employment.
6. Construction: realistic scheduling allowing for weather,
terrain, personnel requirements, infrastructure needs, labor 2.5.8.4 Financial Considerations
agreements.
7. Environment: studies, reports, approvals needed. Limita- 1. Capital availability: sources, currencies, cost, terms,
tions and controls affecting: air, water, solid and liquid waste, conditions. Need for refinancings.
land, noise, ecology, power, hospitals, schools, roads, community 2. Capital tied up in assets such as in accounts receivable
services. and inventory, investment in facilities where services can be
supplied by others.
3. Repayments: schedules, formula and interrelation with
2.5.8.2 Products and Markets price, volume and margins.
1. Customer buying considerations: spot or term contracts, 4. Interest rates: variability and protective options.
price—negotiated,tied to other factors such as cost escalators, 5. Fees: front-end and continuing.
f.o.b., c.i.f., exchange rate fluctuations and adjustments, volume 6. Taxes: land, use, income, royalties, special, direct, in-
minimums and maximums, quality premiums and penalties, direct.
chances to sell upgraded products, service, engineering, credit, 7. Insurance: costs and coverage.
transport. 8. Leases: terms, and conditions on operating and financial
2. Customers: number and size, location and growth pros- leases.
pects, relationships with other suppliers. 9. Employee costs (other than wages): medical, dental, pen-
3. Past and prospective price and volume patterns through a sions and other contractual benefits, funding assumptions and
complete economic cycle for domestic and world product market requirements.
served. Usage changes due to obsolescence, use of competitive 10. Foreign exchange: availability, quotes, special transac-
materials, technological innovation. tions.
4. Competition: existing and potential. 11. Inflation: inclusion in capital and operating costs.
a. Who are they? What are their strategies for the future? 12. Capital additions and replacements.
b. Current capacity utilization and planned expansions. 13. Cost of outside services, travel, and home office.
c. Price discipline, price leaders, relationship of price and
inventory levels, use of contracts, terms and conditions. REFERENCES AND BIBLIOGRAPHY
d. Cost curve for the industry—compare to prior and
projected prices. Anon., 1978, “What Bankers Look For in Project Loan Applications,”
e. Project strengths and weaknesses vs. competition. Mining Engineering, Vol. 30, No. 12, Dec., pp. 1645–1648.
Anon., 1982, “Checking Into an Acquisition Candidate,” Coopers &
5. Government regulations on export, approvals, tariffs.
Lybrand, New York.
6. Potential product liability. Anon., 1988, “The Capital Investment Decision—How to Make It,”
Financial Executive, July/Aug., pp. 40–47.
2.5.8.3 Operating Considerations Anderson, N., and Tingley, H., 1988, “Due Diligence in Mining Invest-
ments,” Mining Magazine, Vol. 158, No. 4, Apr.
1. Management: experience, responsibilities and pay of key Bruce, R., et al., eds., 1986, Handbook of Australian Corporate Finance,
people. 2nd ed., Butterworths, Sydney, Australia.
2. Labor: skills, availability (now and in the future), union Eynon, P., 1988, “Avoid the Seven Deadly Sins of Strategic Risk Analy-
considerations including strikes, prior work practices, pay, in- sis,” Journal of Business Strategy, Vol. 9, No. 6, Nov.–Dec.
Hertz, D., 1979, “Risk Analysis in Capital Investment,” Harvard Busi-
centive compensation, production bonuses. ness Review, Vol. 58, No. 5, Sept.–Oct., pp. 169–181.
3. Machinery and equipment: operating availability and Ibbotson, R., and Sinquefield, R., 1989, Stocks, Bonds, Bills and Infla-
costs, flexibility to expand capacity, technical and economic ob- tion: Historical Returns (1926–1987), Research Foundation of the
solescence. Institute of Chartered Financial Analysts, Charlottesville, VA.
4. Materials: availability, lead times, cost volatility, purchas- Kapoor, A., 1975, Planning for International Business Negotiations, Bal-
ing practices. linger Publ. Co., Cambridge, MA.
5. Health, safety, security, and employee rights. Nevitt, P., 1979, Project Financing, Euromoney Publs. Ltd., London.
6. Maintenance: onsite vs. offsite workshop, availability of O’Faircheallaigh, C., 1985, “Financial Failures in Mining,” Resources
special parts and skilled labor, scheduling. Policy, Butterworths, Sydney, Australia.
Palm, S., et al., 1986, Strategies for Mining Companies: How to Win in
7. Inventory: amounts and locations, on-site and/or at sup- the 1990s, Charles River Assocs., Boston.
pliers. Peters, W., 1987, Exploration & Mining Geology, 2nd ed., Wiley, New
8. Industry norms: reasons for under/over performance, York.
programs to enhance, maintain or upgrade vs. norms. Pfleider, E., ed., 1968, Surface Mining, AIME, New York.
9. Environment: studies, reports, approvals needed. Limita- Rappaport, A., 1986, Creating Shareholder Value, Free Press, New
tions and controls affecting air, water, solid and liquid waste; York.