[INFOGRAPHIC] Financing model for junior miners: Project Generator
For junior miners, its a...
Exploring for minerals is a very costly and risky business with a very low success rate—the odds are not in your favor.
For junior miners, it’s a cyclical game of raising money to drill and then praying to hit some high grades in order to raise more money. The game continues until the company either hits the mother lode or runs out of money.
However, many exploration companies are adopting a new financing model called Project Generator.
Simply put, this model allows the junior miner to get a more established company with substantial capital to either partner or joint venture with, in exchange for a portion of the project. Ultimately, this model gives the junior miner a longer life and helps to create more opportunities to find that profitable discovery.
• Related content: [INFOGRAPHIC] How Junior Miners Can Hit the Reset Button
“I like the prospect generator model because it gives a company exposure to a multitude of projects that someone else is spending their money to explore,” said Mickey Fulp, a geologist and editor of The Mercenary Geologist.
“It allows a company to do relatively low-cost exploration, grassroots-style prospecting and reconnaissance exploration and preserve its capital without diluting.”
The following infographic breaks down everything you need to know about a Project Generator.
Coal India Secures First-Of-Its-Kind Digital Deal
Coal India Limited (CIL) has appointed Accenture Solutions to digitally transform seven of its open-cast mines as the company strives to improve performance and increase coal production. Accenture is due to lay down digitalisation groundwork until March 2022.
The deal aims to increase coal production by 100 million tonnes (MT) by the end of FY’23. Once the minimum quantity has been surpassed, an agreed sum will be paid to the consultant for every additional sum of coal produced. This success fee will only be paid on the procurement of the minimum assured quantity.
The move will see heavy earth moving machinery (HEMM) fitted with digital sensors to monitor performance efficiency at all levels. Additionally, modern data analytic techniques aim to increase mine productivity and project monitoring through functional system management and effective observation.
An Exciting Venture For Global Mining
CIL, which aims to provide energy security in an environmentally and socially sustainable manner, hopes the move will help transform the entire business of mining operations and ensure higher volumes of coal are acquired at a lower cost.
“This is a first of its kind initiative by the company utilising digitalisation to ramp up coal output,” CIL has said.
A Digital Step Towards Enhanced Performance
Digitalisation is expected to take place at open-cast mines in Kusmunda, Gevra, Dipka of Southern Eastern Coalfields (SECL), Migahi, Jayant, Dudhichua, and Khadia of Northern Coalfields (NCL). Nearly 32% (188 MT) of CIL’s 596 MT output in FY’21 was accounted for by the seven selected mines. However, this new deal is set to see a large increase following the subsequent digital changes due to be made.
“Learning from the outcome and success of this model, we may replicate it in our other large mines,” says CIL, optimistic about the future following the modernisation of their mining.
It is expected that the move will help address roadblocks and guarantee corrective measures are put into place, ensuring the company is able to move forward with its aim of increasing output whilst remaining sustainable and eco-friendly.