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By J. Steenkamp, A. L. Hannaford, A. N. Jones

O’Okiep Copper Co. Ltd.’s 45-kt/month (49,600-stpm) concentrator at the Spektakel mine in South Africa is comprised largely of reconditioned equipment from the old O’Okiep mill, which operated from 1940-1975. When combined with modern approaches to layout, crushing, classification, and flotation, a simple-to-operate plant was constructed at a cost of only $3.2 million.

Jan 11, 1982

By Tom Skodack

Mine and tunnel contractors face a complex environment-one in which economic risks are high, operating costs grow ever higher, ore grades are lower or recovery more difficult, and civil construction projects are intensely competitive on a world-wide scale. Within the context of this environment, the risks and rewards of proper machine selection for rock excavation have become proportionately large. Speed, depth and scope of analysis, and extensive supporting information are indispensable in the selection process. Equipment designs and their applications are also myriad and diverse. Several equipment alternatives and excavation techniques may have to be evaluated at once to choose the most cost-efficient approach. The following examples are typical of the current demand for more detailed equipment analysis: • An aggregate supplier starts a new quarry. He knows his targeted tonnage, blasting restrictions, and previous operating costs from other quarries. But he must improve on his old costs. What drill pattern, hole size, and bench height will give lowest cost per ton? How many crawler drills and what type will produce this tonnage most efficiently? • A mine is using a fleet of twin pneumatic ring drills for long hole drilling to initiate their cave. The mine is facing both air shortages and increasing operating costs with decreased efficiency in the ring drill fleet. If they invest in new hydraulic long hole drills, what impact will each drill unit have on production? Each twin drill unit? What configuration gives best operator efficiency and subsequent reduction in manpower? Which configuration gives the best return on investment? • A tunnel contractor is bidding a long straight water tunnel by conventional drill and blast methods. What is the optimum number of drill booms for the tunnel cross section and excavation schedule? How many rounds per day can he achieve? What are his total project drill, blast, and muck costs? In the past, such questions could be answered, but only approximately at best. One good prediction could involve many hours of laborious calculations that had to be repeated each time a new parameter was introduced or an existing parameter changed. In 1980, increasingly complex analysis, coupled with increasing need and quick response times demanded by industry, led Atlas Copco's project department to turn to the computer. New computer programs based on theoretical considerations and three decades of worksite performance data were developed for evaluating mine and tunnel contractors' equipment needs, productivity, and partial or total operating cost calculations for most conventional drill and blast excavation techniques-including shot rock loading and transportation. This Computerized Analysis of Rock Excavation-or CARE-program has since been available to the mining and construction industry. From each program specific results can be pre- dicted, including: • Productivity Calculations-Rock drill penetration rate for a given drill, hole size, and rock type, optimized for the best drill steel life; net machine productivity (drill-out time or drill meters-footage-per shift); total drill round time, including charging, blasting, loading, and haulage; suggested drill pattern, computer printed, including hole size for a given rock drill, rock type, and associated blasting restrictions for either drift rounds or benching applications; long-hole drill meters (ft) per drill shift; breasting down (upper drilling) drill meters (ft) per drill shift; and comparison between continuous loading machine capacity and LHD capacity. • Operating Cost Calculations-Operating costs expressed as cost per drill meter (ft), cost per cubic meter (cubic yard) of excavated rock, and cost per meter (ft) of tunnel advance. These costs may be calculated using as many cost centers as the mine, quarry, or tunneling contractor wishes. Specific operating costs may cover drill rig operating costs only, less capitalization; drill rig operating costs, including amortized equipment investment; drilling and blasting costs; drill, blast, load, and haulage operating costs; long-hole drilling operating costs per drill meter (ft) or per blasted cubic meter (cubic yard) of rock; and loading and transport operating costs. In all the above cases, any number of cost and capacity calculations may be run by simply changing important cost center variables to judge their net effect. Accuracy as a Function of Input Data and the Statistical Data Base Accuracy of a projection clearly depends heavily on the data base from which the projection is drawn.

Jan 11, 1982

By E. L. Fidler, T. E. Finch

Wayne Anderson Regarding the technical paper by Thomas E. Finch and Edward L. Fidler, "Recovery of Stray (Thin) Seams in Western Coal Mining." I would like to comment on this subject. In western Canada, most strip mines encounter thin seam coal or rider seams. Although the paper addresses the problems and costs associated with the recovery of this coal, it does not take into account what the savings are. Without looking at the savings, the "Total Objective" is of course not clear. I feel that in a stripping operation the mine can spend per ton (of the thin seam) up to their dragline stripping costs per ton to recover a rider seam or thin seam. The reasoning behind this is simply that this is the price the mine will have to pay to expose an equivalent amount of coal without the recovery of these thin seams. If the mine can recover a rider seam or thin seam for less than the dragline operating costs per ton, a savings will be realized. By recovering a thin seam or rider seam, the life of an ore body is extended by that amount of coal not thrown away. In addition, the cost of land acquisition, associated permits, capital, and reclamation will be reduced as more coal is delivered for a given area. When the above points are considered, the recovery of these thin seams can be very profitable and indeed worth recovering.

Jan 11, 1982

By Jim Oehler

The US minerals industry, as well we know, has been hit hard by the recent recession and is faced with what is projected to be a slow recovery. Even so, there was an underlying feeling of optimism at American Mining Congress' International Mining Show in Las Vegas, NV, Oct 11-14. More than 25,000 people attended during a particularly rough financial year, dispelling fears that attendance would dip sharply below 1978's 30,000 plus tally. The equipment expositionheld every four years-was the largest show of its kind this year in the Western Hemisphere in terms of exhibit space, providing an extensive view of mining-related equipment. In addition to the nearly 700 exhibits occupying more than 445 hm2 (11 acres), 20 technical sessions were held covering topics ranging from minerals availability and the state of the mining industries to communications, computers, and accounting. Government officials were well represented, with six US senators and five US representatives participating in various convention functions. Sen. Paul Laxalt (R-NV) was the keynote speaker at the welcoming luncheon. Other senators involved in the show included Howard W. Cannon (D-NV), Pete V. Domenici (R-NM), James A. McClure (R-ID), Frank H. Murkowski (R-AK), and Steven D. Symms (R-ID). Representatives on the program were Joseph M. Gaydos (D-PA), Guy Vander Jagt (R-MI), Don Young (R-AK), Jim Santini (D-NV), and Ceil Heftel (D-HI). There were also many international vistors at the show, including exhibitors from Australia, Austria, Canada, England, Finland, Sweden, South Africa, and West Germany. Equipment Highlights Equipment and services featured at the exposition ranged from aerial mapping to wire rope. Aisle space alone between exhibits exceeded 8 km (5 miles). And the companies represented ranged from small businesses to large corporations. Some of the company products described here are representative of the many exhibitors in attendance. Atlas Copco's extensive display of rock drilling and tunnel and shaft boring equipment featured its Boomer H-201, the newest addition to its line of underground drifting rigs; the ROC 306, a new track-mounted, high pressure down-the-hole drill rig; a new hydraulic surface crawler drill, the ROC 712H, designed for small and medium-size holes in quarries and small open-pit mines; a computerized analysis system, CARE (see page 1570), designed to project productivity and operating costs for various mining operations; several electro-hydraulic loaders, including the new rail bound LM E60 and LM E80, and two Hagg-loaders-the 7HR and 10HR-that use two digging arms to rake and guide muck; a mechanized blasthole charging system; rock bolting equipment and its new Swellex roof bolting method; Sandvik Coromant drill steel and bits; and its new Jarva R200 raise boring machine.

Jan 11, 1982

By Mark W. DeLawyer

The base of the stone quarry still stands today, as imposing as any Mavan temple or Egyptian pyramid. For 80 years it has been a reminder to those who must sweat to earn a wage. There are no plaques to indicate its impressive history. Rather, it stands as a towering monument to the masons and stone cutters who built it-a testimony in stone to that most demanding and back-breaking of industries. Take your imagination back to the limestone quarries at Split Rock, near Syracuse, NY. The sound of an occasional steam drill and the mighty roar of a dynamite explosion herald progress. The ring and crash of a hundred sledge hammers are music in the calloused hands of the quarry men. It is a symphony of man against nature. Hundreds of sweat-soaked men break up the blue Onondaga limestone for the "sodi ash," the popular name for the quarry owner, the Solvay Process Co. Nearby, expert stone masons fit mammoth 454-kg (1,000-1b) blocks of cut stone into place, building the foundation for what may have been, back in 1902, the world's largest stone crusher. Consider for a moment, a modern stone quarry. The business is now essentially one of machine against nature. The shovels, drills, conveyors, and locomotives help make the quarry of today a profitable venture. Now consider the quarry of the early 20th Century. Anyway you look at it, a tougher, more demanding life would be difficult to imagine-12 hours a day, all kinds of weather, breaking up tons of rock that had been drilled, blasted, or pounded from the bowels of an uncooperative earth. Before proceeding, it might be prudent to briefly describe the history of the Split Rock quarries. Before the purchase of the quarry lands by the fledgling Solvay Process Co. in 1889, the quarries already had a reputation literally chiseled in stone. Most of the municipal buildings in Syracuse were made of it, as well as over half of the Erie Canal, including the engineering marvel of the time, the Montezuma Aqueduct. This was where the Canal passed not only through, but in some

Jan 11, 1982

By James M. Link

The first rule of mineral deposits always seems to be: the deposit is never close to the market. With gems and precious metals, this is not much of a problem. But with most of the mineral commodities used in today's world, transportation becomes a major part of the cost to the consumer. In Japan, for example, more than 60% of the cost of coal to the consumer may be attributed to transportation. The purpose of this article is to examine pipeline transportation, particularly mineral slurry pipelines, as a means of getting the mineral to market. Pipelines Today Regulated pipelines in the US totaled nearly 724 Mm (450,000 miles) in 1980 according to the Federal Energy Regulatory Commission (FERC). Worldwide, more than 210 Mm (125,000 miles) of new pipelines will start construction in 1982 at an estimated cost of more than $150 billion. According to the Bechtel Corp., the period between 1982 and 2000 will see major growth in pipelines of all kinds. In North America, major movements of crude oil from Alaska and synfuels from the Rocky Mountains will require the construction of nearly 16 Mm (10,000 miles) of new pipelines. Nearly 42 Mm (26,000 miles) of new gas transmission pipelines will be needed to tap both US and Canadian arctic gas fields and move the gas to major markets on both coasts. Other pipelines will be required to move additional quantities of natural gas from the Rocky Mountains to more populous regions. Bechtel says more than 24 Mm (15,000 miles) of slurry pipelines will be needed to transport coal from both eastern and western coal provinces to the Mississippi valley and coastal areas. In 1980, 125 companies delivered more than 1 km3 (6.5 billion bbl) of crude oil and 652 hm3 (4.1 billion bl) of products in the US. At the same time natural gas pipelines transported 498 km3 (17.6 trillion cu ft). The reported investment by these companies was nearly $20 billion at the end of 1980. Advantages of Pipeline Transportation The obvious success and vitality of the oil and gas pipeline industry is based, at least in part, on the fact that pipelines are a very efficient and low-cost method of transportation. This fact, coupled with the need for lower cost trans¬portation, has led to the marriage of oil and gas transmission technology and the bulk mineral solids transportation industry. The off-spring of this marriage is the mineral slurry pipeline. Slurry pipelines have a number of advantages over other transportation methods. One of these is the fact that they are buried-out-of-sight, out-of-mind. Second, they are relatively small users of labor because they lend themselves to automation and remote, or even computer control. Third, they offer an attractive economic alternative to other transportation systems. For example, for a 1000 km (621 miles) distance, rail costs of 1?/ km (1.7?/ton-mile) are about equivalent to slurry pipeline costs. But, as the distance increases, pipeline cost per t-km continues to drop while equivalent rail charges remain essentially insensitive to distance. Where existing rail, barge, or ocean ships are available, the cost of new construction associated with a slurry pipeline probably will render it noncompetitive. However, where new rail or other construction is needed, the cost of a slurry pipeline is very competitive. About three-fourths of the cost of a pipeline is in pipe, fittings, and construction. Nearly a fifth of the investment is in pump stations and the remainder is in right-of-way, surface facilities, utility acquisition, communication facilities, and other support areas. The fact that pipelines are capital intensive is, at the present time, a mixed blessing. For example, the delivered cost of coal in a hypothetical project doubles when the cost of money rises from 9% to 17.5% per year. The largest cost element for delivered coal in this example is in depreciation and finance charges. The next largest cost element is electricity to power the pumps, with labor making up the smallest increment of the delivered cost of coal. World Slurry Pipelines The idea of a slurry pipeline was probably first investigated in the latter 19th century, but the first ones were successfully built and operated in the US in the early 1900s. Today, they are fairly common worldwide. Table 1 shows a number of the world's slurry pipelines. An examination of these will further emphasize the fact that pipelines provide a cost competitive alternative where new construction of a transportation system is required. In each of the examples, the desired mineral commodity is located in a remote corner of the world, markets are at a great distance, value of the commodity is not great, and no other transport system is available.

Jan 10, 1982

By Peter J. Szabo

Many mining engineers tend to think of the economic analysis of mining ventures and projects on an f.o.b. mine basis. This is especially true of mines that are operated in an established domestic mining district. Here, transportation costs are many times smaller in comparison to overall delivered prices. One has only to consider the development economics of taconite mines in Minnesota with production destined for lower lake ports to see the truism of this statement. In the international arena, however, with consumers such as Japan and Europe located thousands of miles from source countries such as Brazil and Australia, the situation is different because mineral transportation is often a critical factor in determining project viability. This article is being presented to provide a basic understanding of the factors that govern ocean transportation of the three largest bulk mineral commodities shipped around the world: iron ore, coal, and phosphate. The major dry bulk commodity trades as a percentage of volume shipped are iron ore, 45%; grain, 25%; coal, 20%; phosphate rock, 5%; and bauxite and aluminum, 5%. Most of these commodities are carried by bulk carriers rather than tankers. These are vessels that have cargo, usually in solid form, loaded directly into the hold of a vessel by shore-side materials handling facilities or, in the case of a geared bulk carrier by the vessel's cranes and derricks. Gearless bulk carriers are used in most cases for iron ore and coal. Geared bulk vessels are mainly used for minor dry bulk trades such as ore concentrates (copper, lead, zinc, etc.), fertilizers (phosphate, potash, etc.), cement, petroleum, and coke. There has been, however, a trend toward using more self-unloading ships in both iron ore and coal ocean transport. And large vessels, such as the Universe Kure of Japan, have been designed with a cargo capability of 157 kt (155,000 dwt (deadweight tons)). Trade patterns of major bulk commodities are influenced by the Panama and Suez canals. Both of these canals have draft limitations that prohibit large, deep-draft, ocean-going vessels from using them for shorter trade routes used by Panamax and Suex vessels. The shipping industry has developed two widely used vessel classes; the Panamax and Suex vessels. The former is the maximum size vessel that can pass through the Panama Canal, usually 51-61 kt (50,000 - 60,000 dwt), depending on the season and draft of the vessel. The Panama Canal is usually 0.6-0.9 m (2-3 ft) deeper in the winter than in the summer. Thus, less cargo can be carried by the same size ship in the summer through the canal than in the winter. The Suex vessel is in the 71-81 kt (70,000-80,000 dwt) class. This larger vessel is able to transit the Suez since Egypt deepened the canal following the Seven Days War. Recently, the Suez Canal has been deepened to accommodate vessels with drafts as deep as 152 kt (150,000 dwt).

Jan 10, 1982

By Craig Cina

Transporting goods from producers to consumers is a fundamental part of the US economy. The demand for transportation closely reflects the economic health and well-being of the nation's industrial, commercial, and agricultural sectors. The inland waterway barge industry has traditionally played a key role in transporting needed commodities to industries on an economical basis. Barges account for 10% of the domestic intercity tonnage carried by all transportation modes. Water carriers operating on inland waterways hauled more than 450 Mt (500 million st) of cargo in 1980-up from 428 Mt (472 million st) in 1970. Inland Waterway Shipments Metallic and nonmetallic minerals comprise one of the largest commodity groups moved on inland waterways. As illustrated in Table 1, metallic and nonmetallic mineral shipments accounted for more than 69 Mt (77 million st), or nearly 15% of all commodities shipped in 1980. Putting this tonnage in perspective, coal and petroleum represent the two largest commodities moved on inland waterways. In 1980, petroleum and petroleum products accounted for 138 Mt (152 million st), or 28% of all commodities shipped. Similarly, coal represented 120 Mt (132 million st), or 25% or all commodities shipped. Even though shipments of metallic and nonmetallic minerals are smaller than coal and petroleum, they still account for a sizeable portion transported. The inland barge industry moves a variety of metallic and nonmetallic minerals ranging from manganese ores to building cement. Minerals transported by barge include: • iron, copper, bauxite, and manganese ores for metal production; • lime and limestone for construction and electric utility scrubbers; • phosphate rock, natural fertilizers, and gypsum for agricultural needs; • sand, gravel and crushed rock, clay, asphalt, tar, and pitches, and building cement for construction purposes; and • a host of other minerals to meet industrial needs. A few mineral commodities are responsible for a large proportion of waterborne mineral shipments.

Jan 10, 1982

By Ernest E. Thurlow

Introduction Today, more than 50% of rail-carried commodities are mineral industry related, with coal being the most important single commodity moved by rail. In 1980, coal accounted for more than 5.7 million of the total 22.6 million carloads moved by rail. Metallic ores were third behind grain, with more than 1.4 million carloads. Crushed stone, gravel, sand, and other non-metallic minerals totaled almost 2.3 million carloads. Chemicals and allied products, including fertilizer and coke, added another 1.7 million cars, with petroleum and petroleum products totaling 300,000 carloads. Coal Several things happened in the 1970s that gave rise to increased consumption of coal-particularly western coal-and to its dominant position among rail-carried commodities. First, the Clean Air Act of 1970 required generating plants to make significant reductions in sulfur dioxide emissions. To comply, utilities could either invest in scrubbers or switch to low-sulfur western coal. Many opted for the latter. By 1972, increasing demands by the utility companies halted what had been a 25-year decline in national coal consumption. Second, the Arab Oil Embargo of 1973 put an end to cheap oil and gas, limiting their future as fuels for electric generating purposes and increasing the potential for coal. Third, in 1977, President Carter announced an energy program with coal as its cornerstone, calling for an annual two-thirds increase in national coal production by 1985. He also called for conversion to coal by utilities and large industrial users. Finally, he proposed a 10-year, $10 billion program to encourage domestic coal production and stimulate development of export markets. Coal bounded into world prominence. Foreign demand for steam and metallurgical coal increased tremendously, while US demand for western coal also shot up. This meant greater demands on the transportation sectors that traditionally carried coal to market. Many railroads began programs to serve the coal industry. One example is Burlington Northern's commitment to handle increased western coal tonnages. The company spent more than $1 billion in recent years to develop a system capable of moving more than 91 Mt (100 million st) of coal each year. Other leaders in this renewal were Norfolk and Western, Union Pacific, Santa Fe, and Southern Pacific railways. The importance of the rapid growth of coal traffic to the railroads is shown in the accompanying table, which gives percentages of total tonnages hauled and revenues attributed to coal. With coal providing the railroad industry with a substantial share of its revenues, there is keen competition among the rail companies themselves and among railroads and other transportation sectors for coal haulage. But there is also cooperation when more than one railroad is involved in delivering the coal from mine to market or when a combination of transportation modes is more economical. The latter is represented by Conrail's interest in working with the port authorities of New York and New Jersey to establish a new coal port that would serve not only export markets, but also utilities and industries in the northeast. Iron Ore Next to coal, iron ore (taconite) is the most important single mineral commodity handled by railroads. In Minnesota, where most iron ore is produced, rail transportation is primarily by Burlington Northern and the Duluth, Missabe, & Iron Range Railway Co. (DM&IR). The DM&IR, owned by US Steel, serves several producers on the Mesabi Iron Range. Two of the larger producers, Erie Mining Co. and Reserve Mining Co., also own railroads that operate between the mines and the ports of Silver Bay and Taconite Harbor on Lake Superior. Several iron mines and taconite plants in Michigan are served by the Chicago and Northwestern, and the Soo Line. Total 1981 shipments of taconite and iron ore are estimated at 55.9 Mt (55 million It), compared with about 61 Mt (60 million It) in 1979 the most ever shipped in one year. Still, with annual production capacity of the eight Mesabi Range

Jan 10, 1982

By Steven Tubbs

Steven Tubbs From mine to farm is a long journey for Florida's phosphate, but it is an important one to the American farmer who uses phosphate fertilizers to replenish the soil and produce the crops which eventually wind up on the American dinner table. In this phosphate-food connection, transportation plays a vital life-giving role, a role that is unique because of the large quantities of phosphate produced and the mineral's location in relation to its markets. Florida Leads World Florida is the world's largest phosphate producer, supplying 80% of the nation's and a third of the world's annual total. About 95% of Florida's phosphate goes into agricultural chemicals, with 90% going into fertilizers. Phosphate production is primarily concentrated in west central Florida, with the exception of mining and processing in north Florida by Occidental Chemical Co. The phosphate rock is beneficiated at the mine sites and then is transported out of Florida in a raw state, or to one of the industry's 18 chemical complexes where it is processed further. In 1981, Florida produced more than 42 Mt (46 million st) of phosphate rock-a 1% decrease from 1980. The industry also produced more than 12 Mt (13 million st) of phosphate chemical products in 1981 and transported them to both domestic and foreign customers. This year, the state's phosphate production and shipments are substantially lower than recent annual levels because of a depressed worldwide phosphate market. With production down slightly in 1981, shipments declined and company inventories increased dramatically. Phosphate-related shipments through the port of Tampa alone fell 20%. As a result, in 1982, phosphate operations cut production to reduce inventories. According to the Fertilizer Institute, during the fiscal year ending June 30, 1982, phosphate rock production fell 18%; phosphate rock shipments, 28%; finished fertilizer production, 30%; finished fertilizer shipments, 25%; and phosphate rock exports declined by 20%. Despite depressed conditions, Florida phosphate production and shipments are expected to increase in the near future with more rock being processed into fertilizer products. Phosphate is one of Florida's major industries. The US Bureau of Mines estimates it contributed $3 billion to the state's economy in 1981 and an additional $1.4 billion to the US economy. In addition, phosphate exports contributed to

Jan 10, 1982

By A. T. Yu

Two major events highlight recent developments in US ore and coal ports: completion of the last series of modern taconite pellet transshipment facilities on the Great Lakes; and modernization and construction of coal ports, particularly on the East and Gulf Coasts. The New Taconite Transportation System To reduce raw material transportation costs, a fleet of new generation high-capacity 304-m (1,000-ft) self-unloading vessels were built to carry iron ore pellets from the Minnesota-Michigan iron ranges to the steel plants on the lower Great Lakes. Existing port facilities had to be modernized, revised, or completely rebuilt to accommodate these large vessels. Some of these were Burlington Northern's Allouez, WI, loading dock; Duluth, Missabe & Iron Range Railway Co.'s Two Harbors, MN, facility; Republic Steel's Lorain, OH, facility; and Chessie's Toledo, OH, dock. Allouez and Two Harbors receive taconite pellets from unit trains and load them onto large vessels either after dumping or via a large stockpile and reclaim system. The Lorain facility receives iron ore pellets from self-unloading vessels' discharge boom conveyor and reloads the pellets into rail cars or small vessels destined to inland steel mills. The Toledo facility receives Armco pellets from vessels, stockpiles them through the winter, and reloads into unit trains destined for Armco's mills along Chessie's rail tracks. Burlington Northern's $75-million Allouez pellet dock, completed in June 1977, was built to receive pellets produced by Hibbing Taconite Co. and National Pellet Plant in Minnesota, stockpile them through the winter when the lakes are frozen, and load them into 304-m (1,000-ft) vessels in the shipping season. As much as 10 Mt (11 million st) of pellets may be stockpiled within the loop track. A 6-km (4-mile) long conveyor system connects the stockpile area and the dock. Thirty-six new concrete silos were built on the dock to house 2 kt (2,000 st) each of pellets before shiploading. The $35.5-million expansion of the Two Harbors transshipment facilities began shiploading in July 1978 after ground breaking in Aug. 1974. Particularly noteworthy is the first application of the Orboom system-a breakthrough in technology for the modernization of the century-old pocket docks on the Great Lakes to accommodate the new generation of super vessels. The pocket-type loading dock has been a standard on the lakes for nearly a hundred years. Bottom-dump rail cars fill the ore pockets on top of a finger pier. Gravity chutes matching standardized ore ship hatch spacings are lowered to fill the holds of a 20.3-kt (20,000-dwt) ship. The construction is simple and the loading swift. In spite of advances in technology elsewhere, most of these docks continue to serve the iron ore and coal trade in the same manner they did in the 19th century. Although performance of the pocket docks on small vessels remains outstanding, the new 304-m (1,000-ft) vessels are beyond the reach of the old docks. After extensive development, the Orboom system (Patent No. 4,065,002) for pocket docks was successfully developed. The heart of the Orboom system is the retractable shuttle loading arm which loads the wide beam vessels. The Orboom shuttles are fed by existing pockets of the dock that, in turn, are charged by a tripper conveyor along the length of the dock. The Two Harbors shiploading system is supported by a 0.9 Mt (1 million st) storage-reclaim network. Unit trains are bottom dumped. Taconite pellets are stacked and reclaimed by bucket wheel reclaiming systems. Lower Lakes New Ore Ports At the lower Great Lakes receiv-

Jan 10, 1982

By John J. Stetler

Introduction Samarco Mineracao S.A. is a Brazilian corporation jointly owned by S.A. Mineracao da Trindade (SAMITRI) and Utah International Inc., with 51% and 49% interests respectively. Headquartered in Belo Horizonte in the state of Minas Gerais, Samarco owns and operates an open-pit mine capable of producing 10 Mt/a (11 million stpy) of iron ore; a concentrator rated at 7 Mt (7.7 million st); a 12-Mt (13.2-million st) capacity pipeline transportation system; a 7 Mt (7.7 million st) filtering and pelletizing plant; and a harbor facility. The mine, concentrator, and initial pipeline pump station are located at Germano, near the town of Mariana, about 300 km (186 mi) north of Rio de Janeiro by air. The pipeline terminal, pellet plant, and harbor are at Point Ubu, 70 km (43 mi) south of Vitória the capital city of Espirito Santo State, and about 300 km (186 mi) by air east of the mine. The 396-km (246-mi) pipeline uses 508-mm (20-in.) pipe except for a 53-km (33-mi) section where 457-mm (18-in.) pipe is used to absorb and control slack flow through increased velocity in one of the areas along the route. Iron Ore Slurry The hematite iron ore concentrate produced at the Germano plant is processed by grinding the average 53% run-of-mine itabirite iron ore to -150 µm (100 mesh) for gangue liberation. It is treated further by cyclones to remove the 10 µm (1250 mesh) slimes to prepare the ore for flotation. During the multistage cationic flotation operation, the silica is reduced to make low silica (-0.9%) concentrate for the direct reduction (DR) iron-making process or to make normal silica (-3.5% +2.5%) concentrate for the blast furnace (BF) iron-making process. The concentrate then is reground further to meet the particle size requirements for pelletizing. The reground hematite concentrate is screened in closed circuit with the regrind mills for close control of the maximum particle size, not to exceed 3.5% +75 µm (200 mesh) for pipeline wear protection. Thickened concentrates at 70% solids are pumped to four 5-kt (5,510-st)(dry) agitated slurry storage tanks that hold the feed before it goes to the first pipeline system pumping station. Pipeline Capacity The pipeline system was designed to transport 12 Mt/a (13.2 million stpy) at 65% solids with an average minimum safe operating velocity of 1.5 m/s (5 fps). The pipeline will transport 5 Mt (5.5 million st) in 1982. The system, therefore, is moving the slurry in 13-kt (14,330-st) batches, dispatched at intervals to move 20 kt/d (22,050 stpd). In operation, the pipeline has exceeded its 93% availability design factor. Pipeline Facilities Pump station No. 1 is located at the Germano minesite 1 km (3,330 ft) above sea level. It has the following principal equipment: • four 5 kt (5,510-st) (dry) agitate slurry storage tanks; • two centrifugal charge pumps (one stand-by); • a 217-m (712-ft) safety loop; • seven mainline positive displacement triplex plunger pumps (189 m3/h, or 832 gpm, at 14.9 MPa, or 2,162 psi, maximum output pressure); • four corrosion-erosion spools; • a control and command center. Operation The output at pump station No. 1, with 66% solids, is pumped 151

Jan 10, 1982

By Christine M. Kammer

In 1852, six barrels of iron ore were loaded aboard the steamer Baltimore at Marquette, MI, after a trip by mule wagon from the nearby Cleveland Iron Mining Co. Shipped to Sault Ste. Marie, they were portaged around rapids and reloaded onto another ship for the final journey to the steel mills of Cleveland. In 1855, the same company-the predecessor of Cleveland-Cliffs Iron Co.-chartered the brigantine Columbia to carry the first iron-ore cargo through the newly opened Soo locks. In 1981, about 2,190 iron-ore shipments in the form of taconite pellets were transported by water from US Great Lakes-ports. The total volume during the 284-day shipping season was 63 Mt (62 million It). Counting Canadian ship¬ments, almost 76 Mt (75 million It) of iron ore were moved on the lakes last year. The five Great Lakes-Superior, Huron, Michigan, Erie, and Ontario-contain 20% of the world's fresh water. The area surrounding the lakes has 26% of the nation's populations, 47% of its steel production, and over 80% of the raw materials required to make steel. That figure includes 71% of the country's iron ore and 40% of its limestone. Only the availability of low-cost water transportation of raw materials has kept the heartland steel producers competitive. Iron ore shipped on the lakes originates in the Lake Superior district's Mesabi and Marquette iron ranges. Major mines and their principal partners are Cleveland-Cliffs Iron Co.'s Empire, Republic, and Tilden; Armco and Republic's Reserve Mining Co.; Oglebay Norton Co.'s Eveleth; Hanna Mining Co.'s National and Butler; Inland Steel Co.'s Minorca; Pickands Mather & Co.'s Erie and Hibbing, the latter operated in conjunction with Bethlehem Steel Corp.; and US Steel Corp.'s Minntac. Pelletized ore products at these facilities is shipped through seven principal ports on the upper lakes: Duluth, Two Harbors, Silver Bay, and Taconite Harbor, MN; Superior, WI, and Marquette, MI, on Lake Superior; and Escanaba, MI, on Lake Michigan. In 1981, tonnage volumes ranged from 13.3 Mt (13.1 million It) shipped from Duluth, to Marquette's total of 5.4 Mt (5.3 million It). The ore docks, with two exceptions, are operated by railroads, most of which are owned by mining companies. Table 1 illustrates US iron-ore shipments in 1981. In the lower lakes, ore is discharged at dock facilities close to the great steel-producing centers of Chicago, Detroit, Cleveland, Pittsburgh, and Buffalo. Between the mines and mills, lakes and connecting waterways form one of the country's most effective transportation systems. Each year, vessels on the Great Lakes transport about 181 Mt (200 million st) of bulk industrial and agricultural materials-a greater quantity at a lower cost than can be achieved by any other transportation mode. Major commodities in Great Lakes trade are iron ore, coal, grain, limestone, cement, sand, and petroleum products. About 125 US flag vessels serve this trade, among them 13 "1,000-

Jan 10, 1982

By John P. Smith

As the US looks within its borders in its drive toward energy independence, economical coal transportation, particularly from vast western reserves, becomes an increasingly difficult but compelling challenge for both the country and the coal industry. Coal producers continue to develop improved technology for more efficient and cost-effective coal mining and processing. But for controlling transportation costs, coal producers must rely on a delicate balance between product demand, competition among carriers, federal regulation, and a symbiotic relationship with coal transporters. In 1981, 739 Mt (815 million st) of coal were mined in the US. Nearly 90% of this coal was moved via

Jan 10, 1982

By Sharon Thomson

Since 1977, Amax Coal Co.'s Belle Ayr mine near Gillette, WY, has been the largest producing coal mine in the US. In its 10 years of operation more than 90 Mt (100 million st) of coal have been shipped from the mine's facilities to electric generating plants across the country. It is thought to be the largest amount ever produced in US history from a single coal mine. The railroad is Belle Ayr's lifeline for moving this massive volume from a relatively isolated corner of northeastern Wyoming. There are no waterways for barge traffic, and highway truck hauling would be impractical considering the quantity and distance of coal to be moved. Transportation in the Powder River Basin-at least for the present-is strictly unit trains. An average of four unit trains daily load at Belle Ayr. These trains average 108 cars long, with a capacity of 91 t (100 st) per car. Burlington Northern Railroad serves the Powder River Basin, but locomotives supplied by Union Pacific, Milwaukee Road, and Kansas City Southern are a common site as well, since coal will often travel these lines too on its way to utility plants in Colorado, Kansas, Iowa, Texas, Arkansas, Louisiana, Wisconsin, and Oregon. When Belle Ayr opened transportation in the Powder River Basin was in an early development stage. As the first large-scale coal shipper in the area, Belle Ayr was the only user of a 27-km (17-mile) railroad spur south of Gillette. Other mines, however, were to open soon on the abundant, low-sulfur reserves. Today, less than a decade after Belle Ayr's debut, 13 large-capacity mines operate near Gillette. The 27-km (17-mile) spur that once served only Belle Ayr has been extended 177 km (110 miles) south to service other mines as well, and to tie into a major rail line in central Wyoming. The Powder River Basin is now served by a wishbone-shaped track configuration that allows train movement north into Montana, south into Colorado, and east into Nebraska for connections across the country. Operations at Belle Ayr are closely tied to train arrivals and departures, with coordination essential between mine operations and rail personnel. "Train movement in the Powder River Basin has evolved to the point where we are fine-tuning mining operations to coordinate them with a more dependable transportation system," according to Joe Jefferson, transportation supervisor with Amax Coal's western division. That, however, hasn't always

Jan 10, 1982

By Raymond E. Blair

Introduction Mining and minerals transportation spans the distance from the pit face and mine wall to the consumer. This transportation can be as simple as coal transfer from the mine and preparation plant by conveyor to a mine mouth electric generating plant. Or it can be as complex as copper ore transportation: concentrated, smelted, refined; drawn into wire and insulated; and cut into reels and transported to local industrial supply houses. The route of aluminum from the bauxite pits to the supermarket shelf in the form of household food wrap is another example of the potential complexity of minerals transportation. For perspective, however, mine to market minerals transportation can be split into three components: materials handling, transportation, and distribution. It should also be recognized that each mineral, market, producer, and consumer has unique transportation characteristics regarding costs, transportation mode, and alternatives in the transportation scheme. Some obvious considerations are the number of producers and consumers, the number of markets and customers the mineral serves. Concerning the latter, are you selling a million tons to one customer or a ton each to a million customers? Transportation volume About the only generalization that can be made about minerals transportation concerns the large volume of materials involved. No other industry compares to the mining and minerals industry in its huge movement of product in the crude, semi-processed, processed, fabricated, and converted states, as shown by the accompanying table of US mineral production. Whether it is crushed stone or sand and gravel moving by truck to a local market from local producers, or coal moving by 9.07 kt (10,000 st) unit trains from a mine to a power plant, or iron ore moving by lake vessel from the upper lake ports to the lower lake steel mills, mineral transportation volumes are huge. The nature of production and consumption affects the transportation mode. More than 60% of the coal moves by rail. The majority of iron ore moves by lake vessel. Ninety per cent of the sand and gravel and more than 80% of crushed stone moves by truck. Factors Affecting Minerals Transportation Some would define minerals transportation as the cost and route to move a mineral product from the first point of sale to the first point of consumption. This definition does not recognize that there can be many

Jan 10, 1982

By Keith P. Bingham

A total transportation system providing for delivery of finished products to customers and raw materials to the plant is one of the key elements contributing to Dravo Lime Co.'s success. Dravo Lime operates one of the largest noncaptive lime and limestone plants in the US at Maysville, KY, where products produced can cost as much to deliver as they do to manufacture, depending on the product itself, its destination, and mode of transportation. With delivery costs comprising a significant portion of total costs for its products, Dravo Lime has made total transportation services an integral part of its business strategy. Prices for most products produced at Maysville are quoted f.o.b. destination. In short, Dravo Lime's Distribution Department relies on the approach that says to customers: "Leave the delivery to us." The 0.9-Mt/a (1-million stpy) Maysville facility, located about 121 km (75 miles) east of Cincinnati, OH, on the Ohio River, primarily produces sulfur-absorbing Thiosorbic lime used by coal-fired electric utilities as a scrubber reagent to remove SO2 from stack gases. The product is currently supplied to eight power plants in the Ohio River valley region which extends through portions of Kentucky, Indiana, Ohio, West Virginia, and Pennsylvania. The plant ships approximately 907 kt (1 million st) of lime and a comparable amount of limestone fines each year. In addition, it arranges for delivery of about 181 kt (200,000 st) of coal to the plant. Lime is transported by covered hopper barges, covered rail cars, covered dump trucks, and pneumatic trucks. It is transferred from barges to storage silos and trucks at a terminal on the Ohio River near Marietta, OH. At another terminal near Aliquippa, PA, lime is transferred from barges to silos, trucks, and rail cars. Future plans call for rail-truck transfer terminals. To produce lime from limestone at the Maysville plant, about 181 kt (200,000 st) of coal is burned annually in three coal-fired kilns. In transporting this coal from the mine to Maysville, Dravo takes maximum advantage of opportunities for reloading carriers with limestone for outbound backhaul movement. Coal, shipped from southeastern Kentucky mines in rail cars, is transferred to barges at a river terminal in West Virginia. After it is unloaded at Maysville, the barges are cleaned with a front-end loader and then reloaded with limestone. Limestone also is backhauled in connection with truck deliveries of coal. The economics of using backhaul shipments has permitted Dravo to enter into markets in which Maysville limestone otherwise would not be competitive. The company plans to backhaul limestone in empty open hopper cars in the future. As part of its ongoing assessment of the distribution system that supports the Maysville operation, Dravo Lime recognizes that a new environment has developed between shippers and carriers because of regulatory changes in the railroad and trucking industries. Although dry bulk shipments by barge to and from Maysville have always been unregulated, other forms of transportation have not. With railroads and motor carriers now approaching varying degrees of deregulation, contracts and agreements are replacing tariffs, and rate negotiations are becoming a daily activity. Dravo Lime plans to take advantage of these transportation changes, all of which may be beneficial to both its plant and its customers.

Jan 10, 1982

By Earle Faig

Earle Faig Along with other transportation modes, the barge industry will be greatly affected by trends in domestic coal production. Traditionally, coal has been one of the major commodities moved by barge. Now, because of events in the international energy market, coal is finally getting the recognition it deserves as a major component of the country's energy program. Perhaps even more significantly, a series of events has caused other countries to turn to the United States as a source of coal. Although the outlook for coal demand is optimistic, it will be greatly influenced by the ability of the transportation sector to handle the additional traffic. Because of its long experience in moving large quantities of coal, the barging industry is in an excellent position to capitalize on coal's increased popularity. A brief description of the barging industry should facilitate the discussion of coal as it relates to that industry. Barge companies operate on a river system that is over 40 Mm (25,000 miles) long. It includes the East and West Coasts and the Mississippi River System comprised by the Allegheny, Monongahela, Kanawha, Ohio, Illinois, Missouri, Tennessee, Cumberland, Arkansas, Warrior-Tombigbee, and Mobile Rivers, and some smaller tributaries. The Gulf Intracoastal Waterway stretching along the Gulf Coast from Brownsville, TX, to Apalachicola, FL, also is considered part of the inland waterway system. Approximately 1,800 companies operate on the inland river system and have a combined fleet of about 4,400 towboats and 28,000 barges. The fleet of towboats represents 4.8 GW (6.4 million hp) of power. The towboats comprising this fleet vary in size from a small harbor boat to a large line haul boat with 7.5 MW (10,000 hp) of power. The choice of size and power of the boat depends on a number of factors, including the size of the river and operational constraints, such as lock size, river-current rate, and water level. The choice also depends on the tow size. A single tow on a river capable of locking through 15 barges at a time handles up to almost 20 kt (22,000 st), whereas a tow on the lower Mississippi, which has no locks, can accommodate up to 41 kt (45,000 st) of cargo. Because the quality of coal is not typically damaged by exposure to the elements, it is usually moved in open hopper barges, although covered barges are used occasionally. The most frequently used size is the jumbo barge that measures 59 m (195 ft) long by 11 m (35 ft) wide by 4 m (12 ft) deep and can handle up to 1.4 kt (1,500 st) of coal. Advantages of Barge Transportation Barging offers several inherent advantages in transportation of bulk commodities like coal. First, barges can carry large quantities of product. A single jumbo hopper barge can handle 1.4 kt (1,500 st) of cargo while it takes 15 91-t (100-st) capacity rail cars or 57 trucks hauling 24 t (26 st) each to move an equivalent amount of cargo. Thus, barges can move more tonnage with less equipment than competing forms of transportation. Second, barging offers the most fuel efficient means of transportation. Less energy is required to push a load over water than to pull a similar load over land. The amount of pollution attributable to barge traffic is minimal because barges consume less fuel. Third, barging is an inexpensive form of transportation. The inland waterway industry transports about 12% of the nation's freight for about 2% of the total freight bill. This can be attributed to competition between the large number of companies on the river system and competition with other transportation modes. Fourth, barging is an environmentally safe method of transportation. Inland river routes expose fewer urban areas to hazardous substances than rail or truck. And barge spills occur less frequently than rail or truck spills. The industry does pose some disadvantages. The waterway system is constrained by the natural river network, so barges cannot travel on the most direct straight-line route. This means that barging is usually an incomplete form of transportation requiring interface with truck or rail. The industry's market is limited to those geographical areas that are located on or near the rivers. In addition, it is a time-consuming transportation mode, making it impractical for many types of commodities.

Jan 10, 1982

By Nathaniel Arbiter, Brij M. Moudgil

Separating oil shale from waste material or into high- and low-grade fractions can have a major economic influence on the surface retorting process. Different shale rock components vary significantly in physical and surface chemical properties, such as specific gravity, color, and water wettability. Various techniques that use the differences in one or more of these properties have been proposed to preconcentrate oil shale before retorting. This article discusses some proposed techniques, such as gravity separation, sorting, and froth flotation. Retorting oil shale is the most common method for recovering oil from the rock. This process is accomplished either underground (in situ) or above ground (ex-situ or surface retorting). Both techniques have serious limitations, such as low recoveries in the underground method and the ability to process rich shales only in the above ground retorting method. Also, environmental problems are associated with both techniques. Some of these limitations could be overcome if feed to the retorts is of consistent grade. This could be achieved by selecting appropriate sites for in situ retorting and selective mining for surface oil shale retorting. Both of these, however, would have a serious economic impact on shale oil recovery. Obviously, little control can be exercised over preparing feed material in the in situ retorting process, but beneficiation of oil shale could definitely be advantageous in surface retorting, and should have positive influence on the overall economics of recovering oil from the shales. For example, preconcentration of mined shale could result not only in reduced costs for materials handling, but also in waste disposal costs, since waste characteristics before and after the retorting process are significantly different. Upgrading the oil shale might also allow substitution of alternate technology for retorting as well as extend the process to recover oil from marginal deposits. Also, the separated material may become a potential source for recovering other values from shale deposits. Overall, the incentives for preconcentration are to reduce costs and improve thermal efficiency of the recovery process. Oil Shale Properties Important to Preconcentration Oil shale is a carbonaceous rock assaying 5-30% organic material (kerogen) and 70-95% ash-forming minerals. Kerogen is soft, nonbrit¬tle or semi-brittle material, and generally forms a matrix between irregularly distributed mineral grains. Inorganic mineral mat¬ter-quartz, feldspar, dolomite, kaolinite, dawsonite, and nahco-

Jan 9, 1982

By Dale S. Hursh, William A. Brooks

Introduction US dependence on external energy sources is dangerous because of unstable political situations existing in key energy exporting countries. So, recent national energy policies call for increased reliance on domestic energy sources. Coal ranks as the most feasible domestic energy source due to its abundant reserves and continental distribution. But to efficiently extract these coal reserves, huge sums of capital funds are needed. Due to the depressed economy, lenders of capital funds are forced to be more stringent with loan applications. This results in fewer loans granted. In many cases, it is uncertain if funding can be obtained. Furthermore, the greatest level of domestic mine financing is expected to be in the coal sector. Demand for capital in the domestic coal industry is anticipated to increase 80% by 1990. The Chase Manhattan Bank in New York warns that these future needs cannot be met by the present capital markets. This article analyzes the current and expected situations of the capital markets available to the domestic coal industry, including: • current and expected future types of financing used in the domestic coal industry; • problems the domestic coal industry may encounter as it seeks capital; and • the future availability of capital funds as concluded from analysis of the first two items. Background Information Regardless of industry, all projects or ventures can be divided into four basic stages: generation; evaluation; selection; and execution. Within the mining industry, one can break down these stages to draw a clear picture of mine development, as shown in Fig. 1. Each successive stage has a corresponding risk level. This risk level defines the type of financing available to the mine operator. Mining Venture Risks A coal mining venture can be characterized by its unique blend of technical and financial risk. As the mine moves through different development stages, varying proportions of each of these risks are encountered. It is these risks that the lender evaluates to determine project suitability. For a coal mining venture, the major complexities generally occur with the technical risk. These include: • quantifying the coal reserves: • assessing the feasibility of the mining method; and • evaluating the design of the wash plant. The reserve risk is gauged by the amount of measured, mineable, and saleable reserves. The greater the latter amounts, the lower the risk. Secure title to the reserves plus title for any surface areas required are also of concern to the banker. Feasibility of the mining method and evaluation of the wash plant design should verify that the project can be completed according to the engineered spec-

Jan 9, 1982