WO2010105330A1

WO2010105330A1 - Method of processing a natural resource

Info

Publication number: WO2010105330A1
Application number: PCT/CA2009/000335
Authority: WO
Inventors: Maynard L. Dokken
Original assignee: Dokken Maynard L
Priority date: 2009-03-18
Filing date: 2009-03-18
Publication date: 2010-09-23

Abstract

A method of processing a natural resource comprises a purchaser acquiring, through a web portal, specifically identified lots of the resource for processing according to predetermined processing arrangements. Physical means are used to mark the individual lots and to track their progress through the process. The progress is reported to the web portal for viewing by the purchaser.

Description

TITLE OF INVENTION

METHOD OF PROCESSING A NATURAL RESOURCE

FIELD OF THE INVENTION

This invention relates to methods of processing natural resources. In particular, this invention relates to a method of facilitating the participation of a variety of purchasers in the processing and sale of processable natural resources.

BACKGROUND OF THE INVENTION

The processing of natural resources such as minerals, forest products, hydrocarbons and other resources is financially demanding. A significant amount of capital is required to undertake and maintain such operations. As a result, the large-scale raising of capital by resources companies going public has become a central feature of the natural resources sector, particularly in the mining industry. However, raising capital by going public results in a loss of control and loss of focus for the entrepreneur and may result in unnecessary losses for investors. For an established public company, raising additional capital typically involves undesirable dilution of the shareholdings.

There is therefore a need for an improved method of processing natural resources that allows extractors and processors to focus on their core competencies.

It is a further object of the invention to provide a means for members of the public to easily participate in the processing of natural resources without having intimate knowledge of the mechanics and business arrangements associated with it.

It is a further object of the invention to allow purchasers to reliably identify the lot of natural resource that has been purchased and that is to be processed. alternative means of raising the capital necessary to process natural resources, as an alternative to going public.

These and other objects of the invention will be better understood by reference to the summary of the invention and the detailed description of the preferred embodiment which follows.

SUMMARY OF THE INVENTION

The present invention offers a solution by providing a facility whereby purchasers at large may purchase specific segregated and identified lots of natural resources based on standing arrangements with owners of the resources (or those having extraction rights) and resource processors. The resource is processed on the account of the purchaser who then takes the bulk of the risk and rewards associated with the processing and with fluctuating commodity prices.

The purchasers are offered a pre-packaged set of standing arrangements with the original owners of the resource and with processors, thereby relieving the purchasers from the difficulties of making such arrangements. This is facilitated by a web portal that allows purchasers to purchase the resource on the one hand, and to trigger processing of the resource according to the standing arrangements on the other hand.

The lots of resource of which the purchasers acquire ownership are tracked by physically marking the lots through the delivery and processing processes. This ensures that the costs and profits associated with each lot are appropriately assigned. It also enables the delivery, via the web portal, of feedback to the purchasers as to the status of the lots and of their processing.

In one aspect, the invention comprises a method for processing a natural resource. A sale is concluded to each of a plurality of purchasers, of one or more specific physically segregated lots of a natural resource. For each of the sales, the lots are associated with their respective purchasers by means of at least one physical marker on or in the lots. The sale is communicated to one or more operators who cause the lots to be processed into a processed product, and cause the processed product to be sold on account for the purchaser. The proceeds from the sale of the processed product are provided to the purchaser.

In a further aspect, the physical marker(s) are tracked through the processing and sale.

In yet a further aspect, information regarding the status of the lots is made available to the purchasers through a World Wide Web portal and sales to the purchasers are conducted through the portal according to predetermined processing arrangements with processors or operators.

In a further aspect, the invention comprises a method of processing a natural resource wherein an area containing a quantity of the resource is defined. For each of a plurality of purchasers, a specific measurable lot from the quantity is sold to the purchaser, the lot is uniquely associated with the purchaser by a physical marker on or in the lot prior to extracting the natural resource. The lot is then extracted from the quantity of resource and is processed and sold. The purchaser is then provided with the proceeds of sale net of the costs committed or incurred in the extraction, processing and sale.

The foregoing was intended as a broad summary only and of only some of the aspects of the invention. It was not intended to define the limits or requirements of the invention. Other aspects of the invention will be appreciated by reference to the detailed description of the preferred embodiment and to the claims.

BRIEF DESCRIPTION OF THE DRAWINGS

The invention will be described by reference to the detailed description of the preferred embodiment and to the drawings thereof in which: Fig. 1 is a schematic of the preferred embodiment of the invention;

Fig. 2 is a flowchart of the preferred embodiment of the invention; and,

Fig. 3 is a schematic illustrating an alternative marking means according to the invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

The preferred embodiment of the invention is in relation to the processing of mineral ores. However, it will be appreciated that the invention is equally applicable to other natural resources suitable for processing such as forest products, hydrocarbons, sea water, etc.

According to the preferred embodiment, and referring to Figs. 1 and 2, a mine operator 10 has entered into an agreement 12 with a broker 14 specifying that, upon later request by the broker 14, the mine 10 will transfer ownership of later- specified lots of ore as may be directed by the broker 14, to a later-designated purchaser, and at an agreed price per tonne. The agreement 12 further provides that the mine operator 10 will ship (16) the specified lots to a predetermined processing plant 18. The mine operator 10 has subdivided and segregated identifiable lots of ore, for example into distinct ten-tonne piles 20, 22 and 24. The segregation of the lots 20, 22 and 24 may be before or subsequent to entering into the agreement with the broker 14.

According to the preferred embodiment, the distinct piles 20, 22 and 24, all of which are originally owned by the same mine operator 10 and may be located in substantially the same location, are individually identified and tagged by spraying the piles 20, 22 and 24 with distinctly coloured powders enabling relatively easy identification of the individual piles. In this example, pile 20 is sprayed with a magenta powder, piles 22 and 24 being sprayed with powders of other colours. Similarly, an agreement 26 is established between the broker 14 and an ore processor 18 for the processing of lots of ore on demand at a specified cost per tonne. In the preferred embodiment, the processor 18 charges a fixed fee per tonne.

An agreement 28 is also entered into between the broker 14 and a refinery 30 for refining later-specified lots of ore on request by the broker 14 for a combination of a flat fee per tonne plus a royalty based on the eventual sale price of the processed mineral.

The broker 14 maintains a transaction facility such as a portal 32 on the world wide web. Portal 32 includes a facility for selecting and purchasing lots of ore. A prospective purchaser 34 who wishes to participate in the processing of ore accesses the portal 32 and through that facility enters into a purchase and processing agreement 36 with the broker 14, as agent for the various participants (mine operator 10, shipper 16, processor 18, refinery 30) to purchase a specific lot 20 (for example) of the ore, to have it shipped to the processor 18, processed, shipped to refinery 30, refined to a finished product 38 and sold (40).

The purchase and processing agreement 36 with the broker 14 may also provide flexibility in redirecting the shipment or processing steps according to the most efficient means of processing the ore, as may be determined from time to time. For example, the commodity prices may fluctuate, transportation costs may change, or it may be determined as part of the processing step that the ore has more value in being processed for another mineral than what was originally contemplated. In the preferred embodiment, the purchase and processing agreement 36 provides the broker 14 with the right to process the ore according to the most efficient means for maximizing value, such most efficient means being determined from time to time. The purchase and processing agreement 36 allows the purchaser 34 to acquire lots of ore that are subject to predetermined shipping, processing and sale arrangements. While flexibility in changing such arrangements may be provided, a default set of conditions allows the purchaser 34 to rely on such predetermined arrangements to ensure eventual processing of the ore.

Upon entering into the purchase and processing agreement 36, the purchaser 34 becomes the owner of specific lot 20 of ore whereupon property of lot 20 passes to the purchaser 34. Broker 14 dispatches a notice to the mine operator 10 that a purchaser has acquired ownership of lot 20. Thereafter and at a time of the purchaser's choosing, the purchaser 34 may hit a "process ore" button on portal 32, to trigger the shipment and processing of the ore without the need for further management by the purchaser 34. Upon doing so, the portal 32 provides instructions to the mine operator 10 to ship that specific lot to the processor 18.

The mine operator 10 loads the ore from lot 20 for transport in rail cars 42 and marks each rail car with a temporary apron 44 containing a unique bar code 46 identifying the lot and its owner. The mine operator 10 also sprays magenta powder (not shown) into the bulk of lot 20 as it is being loaded so as to maintain the separate identification of lot 20. The lots owned by various purchasers are delivered and processed in segregated batches to the processor 18, so as to reliably identify the lots belonging to specific purchasers.

At predetermined milestones, the bar codes from the aprons are read by automatic or hand-held readers, and information on the progress of the shipment from the mine operator 10 to the processor 18 is dispatched to the broker 14.

Upon receipt of the shipment of ore, the processor 18 records the lots received by recording the bar codes associated with each lot, and by verifying the colour of the powder that should be associated with each lot. The location and other features of the lots are again reported to the portal 32 for tracking purposes. Once the ore has been batch processed into a concentrate, it is packed and labeled in segregated containers 33. The containers may also be barcoded 35. Upon doing so, the broker 14 is notified by the processor 18 that the specific lots have been processed into concentrate.

At any point from purchase through shipment and processing, the purchaser 34 may order an assay of the ore, the results of the assay being relayed to the portal 32.

Through regular lot identification and reporting to the portal 32 as illustrated in Fig. 2, the purchasers 34 may track the progress of their shipments to the processor 18 by logging into the portal 32. The portal 32 provides information as to the quantity being shipped (or processed), the stage of shipment or processing, the location of the lot, and in the event that the purchaser has ordered an assay of the ore, the results of the assay.

By the terms of the processing agreement 36, the purchaser 34 has the right to direct the processor 18 to store the concentrate as an alternative to forwarding it to the refinery 30. Preferably, in the absence of instructions, the processing agreement 36 provides that the concentrate will be shipped to the refinery 30.

Once the concentrate has been refined, the resulting end product 38, for example ingots in the case of gold, are marked with serial numbers as is customary. The refinery 30 communicates the serial numbers to the broker 14.

The purchaser 34 is then given the option to sell the ingots, store them or ship them. In most cases, it is anticipated that the purchaser 34 will chose to sell the ingots directly to the refinery 30 at the prevailing spot market price. Upon the sale of the ingots, the proceeds of sale, minus any amounts owing to the mine operator, the processor or the refinery (if payment of such amounts were deferred), are deposited (41 ) into a trust account maintained by the broker 14 for the purchasers 34. While the preferred embodiment has described essentially unprocessed ore as the raw material in the described process, the invention may also be applied to previously processed tailings that are to be re-processed. The term "natural resource" in the claims should therefore be taken to include such previously processed (or partly processed) bulk natural resources.

The means of physically marking the purchased lots may vary. Fig. 3 illustrates an alternative embodiment wherein magnetic ink 48 is applied to a specific lot of raw ore 50 in a distinctive pattern. A bar code 52 is also applied to the lot. Automated means such as a laser-based optical sensor 54 may be used to identify lots by their marking. In the processing stage, the magnetic properties of the ink 48 may be detected to determine the beginning and end of a given lot.

The marking means may be be varied according to the different stages from purchase to sale. For example, a coloured powder may be used at the mine site and in shipment, while bar coding or magnetic tags may be used through the processing steps. Such changes are recorded by the participants and by the broker through the portal to ensure consistent identification and tracking of each lot.

According to the preferred embodiment, the broker maintains the portal. However, portal could be maintained and operated by a different entity, for example with the broker's role being limited to making initial arrangements with the original owners of the resource and with the processors. In such scenario, the broker substantially steps out of the picture once the arrangements are entered into, such that the purchaser enters into a transaction with the portal and the subsequent contacts are between the participants and the portal.

In the described embodiment, the refinery acts as the vendor (and purchaser in some cases) of the final product. It will be appreciated that a separate broker, vendor or vendor's agent may be involved. Similarly, while a third party broker has been contemplated, the role of the broker could be taken on by the mine operator or the original owner of the natural resource.

The scope of the purchase and processing agreement contemplates that the purchaser may have the option of directing one or more of the participants to store the natural resource at a predetermined or newly negotiated price. This allows the purchaser to exercise authority over the disposition of his property and to select when to process the resource having regard to market conditions, the purchaser's financial resources or other factors.

The natural resource need not be physically extracted prior to implementing the invention. Provided that lots of the natural resource are susceptible to individual identification, such identification enables ownership of the specific lots to be passed to the purchasers and processing according to the invention may take place, with the lots being marked in situ, or alternatively being identified in situ and marked immediately upon extraction.

It will be appreciated by those skilled in the art that the preferred and alternative embodiments have been described in some detail but that other modifications may be practiced without departing from the principles of the invention.

Claims

1. A method for processing a natural resource, comprising:

concluding sales to each of a plurality of purchasers, of one or more specific physically segregated lots of a natural resource;

for each of said sales:

associating said one or more lots with its respective purchaser by means of at least one physical marker on or in said one or more lots;

communicating said sale to one or more operators who cause said one or more lots to be processed into a processed product, and said processed product to be sold on account for said purchaser;

providing to said purchaser proceeds from said sale on account of said processed product.

2. The method of claim 1 wherein said at least one physical marker is tracked through said step of processing and sale.

3. The method of claim 2 wherein information regarding the status of said lots is made available to said purchasers through a World Wide Web portal.

4. The method of claim 1 wherein said sales to each of a plurality of purchasers are conducted through the World Wide Web.

5. The method of claim 4 wherein said sales are subject to predetermined processing arrangements with said operators.

6. The method of claim 3 wherein said sales to each of a plurality of purchasers are conducted through the World Wide Web and said sales are subject to predetermined processing arrangements with said operators.

7. The method of claim 3 or claim 5 wherein at least a plurality of said lots are, prior to said step of concluding sales, owned by a single entity and are substantially located in a common location.

8. A method of processing a natural resource, comprising:

defining an area containing a quantity of said resource;

for each of a plurality of purchasers:

selling to said purchaser a specific measurable lot from said quantity;

uniquely associating said lot with said purchaser by a physical marker on or in said lot prior to the step of extracting;

extracting said lot from said quantity of said resource;

processing said lot;

selling said lot; and,

providing to said purchaser proceeds from said step of selling said lot.

9. A method for brokering the processing of a natural resource, comprising: selling through the World Wide Web, to a plurality of purchasers, specific measurable lots from a predetermined extractable quantity of said natural resource in a predetermined area;

communicating each of said sales to an operator who:

uniquely associates each of said lots with respective ones of said purchasers prior to the step of extracting;

extracts each of said lots;

processes each of said lots;

selling each of said processed lots; and,

providing to each of said purchasers proceeds from said step of selling respective ones of said processed lots.

10. The method of claim 9 wherein said step of uniquely associating comprises uniquely associating each of said lots with respective ones of said purchasers by physical means on or in said lot.

1 1. The method of claim 10 wherein said step of uniquely associating by physical means is performed after said step of extracting.