Delivering Smarter Solutions
ISSUE NO. 57 — August 2004
PAH NEWS PI
WORLD BANK RESPONSES TO EIR MINERS, SMELTER WORKERS STRIKING DOE RECEIVES CLEAN COAL PROPOSALS NO ROYALTY TAX FOR LAS BAMBAS
Feasibility Study Does Not Mean Feasible
There appears to be a misconception by some in the industry about what a feasibility study is and the steps required to generate one. Yes, when someone says feasibility we all know what people are talking about, but as companies try to expedite the process of bringing projects on-line these steps are being skipped. Unfortunately, skipping these steps can end up delaying the project and costing more money. In some cases it also means projects that ...view middle of the document...
Typically “bankable” means an overall accuracy level of +/- 15 percent on the feasibility study. A “bankable” feasibility study can be compared to the level of effort a company might expend if the project is to be internally financed. For internally-financed projects, companies have their own requirements which may or may not meet an accuracy level of +/- 15 percent, and in some cases may exceed this standard. To some in the industry, the act of commissioning a ”bankable” feasibility
C A L E N D A R
Argentina Mining 2004 August 18–20, 2004 Emilio Civit Congress Center Mendoza, Argentina email: email@example.com MiningWorld Central Asia 2004 Exhibition September 16–18, 2004 Atakent Exhibition Centre Almaty, Kazakhstan email: firstname.lastname@example.org 27th Annual Coal Marketing Days Conference September 27–28, 2004 Mariott City Center Pittsburgh, Pennsylvania email: email@example.com MINExpo 2004 September 27–30, 2004 Las Vegas Convention Center Las Vegas, Nevada email: firstname.lastname@example.org
Copyright 2004 by Pincock, Allen and Holt, a division of Hart Crowser, Inc. All Rights Reserved.
WORLD BANK RESPONSES TO EIR The main board of the World Bank Group is planning to reveal a management response to the extractive industries review (EIR). The EIR, developed three years ago, looks at whether extractive industry projects can be compatible with the World Bank’s goals of sustainable development and poverty reduction. The response is expected to say that extractive industries could contribute to sustainable development but only if projects are implemented well and preserve the rights of affected people, and if the benefits they generate are well used. The International Finance Corporation (IFC), the largest multilateral source of loan and equity financing for private sector projects in development worlds, feels ensuring sustainability on financed projects is fine, but these projects also need to be profitable. Various workshops have been planned over the next few months to integrate the new initiatives proposed under EIR. MINERS, SMELTER WORKERS STRIKING This summer mining strikes are becoming a regular occurrence across North America as workers and operators are taking a hardnosed attitude at contract talks. Strikes have occurred in Canada, Mexico, and the U.S. With high metal prices driving up company profits, miners and smelter workers are wanting their share of that profit. With a general decline in union membership and bargaining power, employers have had the upper hand in the last 20 years and expect unions to give more back. DOE RECEIVES CLEAN COAL PROPOSALS The U.S. Department of Energy has received proposals from 13 companies for new clean coal projects valued at nearly $6 billion. Ninety-seven percent of the proposals received offered advancements for power generation based on commercial demonstrations of gasification technology and improvements to efficiency, reliability, availability, and...