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By L. Yuan, J. H. Rowland

"In 1995 and 2003, the U.S. Mine Safety and Health Administration (MSHA) conducted surveys to determine the number of atmospheric monitoring systems (AMS) that were being used in underground coal mines in the United States. The survey reports gave data for the different AMS manufacturers, the different types of equipment monitored, and the different types of gas sensors and their locations. Since the last survey in 2003, MSHA has changed the regulation requirements for early fire detection along belt haulage entries. As of Dec. 31, 2009, point-type heat sensors are prohibited for use for an early fire detection system. Instead, carbon monoxide (CO) sensors are now required. This report presents results from a new survey and examines how the regulation changes have had an impact on the use of CO sensors in underground coal mines in the United States. The locations and parameters monitored by AMS and CO systems are also discussed.IntroductionThe last survey conducted by the U.S. Mine Safety and Health Administration (MSHA) on atmospheric monitoring systems used in underground coal mines in the United States was in 2003 (Francart, 2005). A total of 146 active mines were surveyed. The survey report states that since 1995 there had been a steady increase in the use of atmospheric monitoring systems in underground coal mines as the technology of carbon monoxide (CO) sensors was improved by manufacturers. Atmospheric monitoring systems had become more reliable, and some CO sensors could be purchased with the capability to discriminate between the CO produced by a fire versus CO produced by diesel equipment. This increase in reliability had reduced the number of false alarms and the response time. The faster response time to a developing fire allowed miners to take the necessary action to put out the fire or exit the mine.At the time of the last MSHA survey, some mines still used point-type heat sensors to detect the presence of a fire on conveyor belts. This detection method works by measuring the temperature of the air around the sensor. As a fire starts to develop, smoke and hot gases are produced from the combustion process, and the air is heated up. Once the air and gases reach a designated temperature detected by the point-type heat sensor, a fire alarm signal is generated. Studies have shown that the response times for detecting the presence of a fire using CO sensors are much shorter than when using point-type heat sensors (Conti and Litton, 1995)."

Jan 2, 2018

By J. D. Brown

The purpose of this paper is to inform members of the coal producing and consuming community about techniques used by The Carter Mining Company to control product quality at a large surface coal mining operation. During the early years of mining operations, coal quality received adequate attention but the Company's main emphasis was to build up its production rate and minimize mining costs. While these goals are still of prime importance, coal quality has received substantial attention in recent years. A Company guideline that no coal shipment shall exceed any contract or company-imposed coal quality specification has been successfully implemented. To implement this guideline, geology and coal quality modeling procedures were improved, in-pit drilling and blending programs were refined, and detailed shipment procedures were developed. Background Surface coal mining of subbituminous C rank coal in the Cillette. (Campbell County) Wyoming area has become increasingly competitive during recent years. Prior to 1974, one small surface mine produced coal for local consumption. During the last ten years, 13 new surface coal mines have been constructed. Coal production from Campbell County, Wyoming totalled 88 million short tons (79.8 million metric tons) in 1983, the majority being shipped to electric utilities in the central and southern United States via unit trains having a capacity of 10,000 short tons (9,072 metric tons).

Jan 1, 1984

Despite two large projects represented in the keynote docket, the mood of the 2011 SME Arizona Conference was summed up best by Ferol Baker, general manager of New Mexico Copper Corp. (a wholly owned subsidiary of Themac Resources Group), ?In the past, it seemed like you couldn?t go to a conference like this without hearing about one big new greenfield project after another. Now what you see is companies doing internal expansion or small-scale brownfield development.? Overall, the tone of this year?s meeting, held at the J.W. Marriott Resort at Starr Pass in Tucson, AZ, was upbeat, yet practical. From the keynote and luncheon addresses to the six panels of sessions, the projects described were positive about the future, yet focused on the details required to make those projects come to fruition.

Jan 1, 2012

By Dragomir Gospodinov, Savka Dineva

A surprisingly large mining-induced seismic event occurred in the LKAB Kiirunavaara Mine (Sweden) on 18 May, 2020 at 03:11 (local time). The estimated moment magnitude was 4.2. The event caused extensive damage in a large section of the mine. The production in the area is not yet resumed, even by the beginning of 2022 (~20 months after the event). The Kiirunavaara Mine has one of the world’s largest underground seismic systems with approximately 253 geophones. The in-mine records of the event showed a very complex character with a several sub-events. The event was also well recorded by seismic stations out to over 9,000 km distance. Data from the underground and regional seismic systems were analysed to define and compare basic source parameters such as hypocenter location, seismic moment, as well as the seismic moment tensor. The data from the in-mine seismic system was used to study the development of the seismic process and to define elementary seismic sub-sources together with the official hypocenter location.

Apr 26, 2022

By Charles L. Allie

In June, 1980, Reserve Mining Company completed a 370 million dollar construction project which included process modifications required to reduce the silica content from nine to five percent by weight and increase the iron con- tent of Reserve's pellets from 62.5 to 65.8 percent by weight (dry basis); process modifications and additions required to implement "best available technology" water quality controls; and installation of "best available technology" air emission controls. The new process began operation on June 24, 1980 and is being optimized to meet design objectives. Dry cobbing, fine screening and flotation additions to the concentrating process have reduced the silica content of Reserve's pellet from nine percent to five percent by weight. The process reclaims and reuses all process waters, stores all tailings in a zero discharge tailings basin and meets all air emission standards.

Jan 1, 1980

By J. F. T. Agapito

Two flat-lying trona seams 3-to 3.5-m thick, approximately 10 m apart, and at depths of 250 m are mined by room-and-pillar at OCI's Big Island Mine in Wyoming. Continuous miners and a yielding pillar system have contributed to improvements in resource recovery and productivity. Long-term stability with minimal subsidence is needed for a large portion of the mine beneath the Green River channel. This was investigated by computer modeling in 1990. Although results of the study indicated good long-term stability, recommendations were made for stress determinations to verify the model. Stress determinations made in 1997 showed pillar stresses 10% to 20% higher than the model stresses, and barrier pillar stresses 10% to 15% lower. This implies that higher panel stresses will be transmitted from the upper to the lower seam. A stability evaluation of the lower seam is planned before two-seam mining to assess entry widths and support requirements.

Jan 1, 1999

By David A. Greenhut

The Kubota surface melting system has been under development since 1975. It has found commercial application on the melting of municipal sludge, and ash from solid waste. The melted product has physical properties allowing its use as a substitute for aggregate in cement and asphaltic construction. This paper describes the surface melting system, its current use and anticipated future use.

Jan 1, 1991

By Dennis L. Boley, Francesco Gallavresi, Donald A. Bruce

The authors describe novel aspects of ground reinforcement and treatment as related to soft ground excavation for tunnels throughout the world. Insitu reinforcement for cut slopes (soil nailing), as underpinning (reticulated micropiles), and as direct tunnel support (infilaggi) is introduced. Ground treatment focuses on new aspects of permeation grouting (by the tube'a manchette system), and on jet grouting-a very powerful and positive new technique. Recent developments in equipment, materials, methods and instrumentation are reviewed, with special reference to major tunnelling projects in Italy and Singapore.

Jan 1, 1987

By J. F. McDonald

On December 8th of last year, the new St. Clair River tunnel was holed-through to Port Huron, Michigan. The tunnel, commissioned by the Canadian National Railway, was needed to replace an existing tunnel that had been built between 1889 and 1890, and had remained in continuous operation until the new tunnel was opened to traffic in April of this year. The original tunnel, after more than 100 years of service, was still structurally sound, but was too small to accommodate the double stacked container cars and other advances in the railroad's equipment that had developed over the years. Prior to the construction of the first tunnel, all freight was barged across the river. It was a slow, expensive process, which in winter was sometimes impossible. The nineteenth century tunnel was built in twenty months, utilizing two shields that mined to the middle from each end. The lining, which is still in excellent condition, consisted of bolted, cast iron segments, with an O.D. of 6.4 meters. It was the first sub-aqueous tunnel built in North American, and it's use of compressed air under the river and hydraulic power on the shields may also have been firsts. The digging was done by hand, and the muck hauled out by mule drawn wagons. Boulders and methane gas were reported to be a constant problem during the drive, and compressed air sickness was common, but when the two shields came together in August of 1890, it was reported that the alignment was within 6 mm. The new St. Clair River Tunnel was constructed for basically the same reason as the original. The larger equipment which the railroad is using today would not fit through the old tunnel, and once more they were forced to ferry the cars across the river.

Jan 1, 1995

By A. Subbotin

During developing the Ingulska mine at the Mi-churinske uranium deposit in the central part of Ukraine the radioactive rock dumps have been piled. A height of dumps reaches to 15-25m. They occupy a large territory and can be a source of covering with radioactive dust the area around the Ingulska mine. Uranium content exceeds 0,01% in all dump rocks samples while in the dust fraction samples it ranges from 0,01 to 0,06%. Uranium content in road dust at the dump?s foot reaches 0,137%. A new (for Ukraine) method of f-radiography of tree and bush leaves sampled at the territory about 100km2 has been used. It is based on fission of 235U nucleuses due to heat neutron influence in a nuclear reactor and on following study of the Lausan films with tracks drawn by the fractures of these nucleuses. Uranium content of the dif-fusion-disseminated dust type is (0.9-22.2)?10-6% while in the individual particles it can be considered much more because of burned holes in Lavsan above them. The dust content with uranium in Kirovograd reaches to 20-50 part/cm2 while near the dumps it ranges from 100 part/cm2 to 300 part/cm2 in the radius of 1,5-2km from the Ingulska mine.

Jan 1, 2005

By E. Grygiel, J. Haynes, T. McNider

Jim Walter Resources Blue Creek No. 3 Mine was opened in one of the most gassy coal beds in the United States. Although face ventilation requirements exceeded 14,000 cfm (6 .6m3/s) air, continuous miner sections experienced an unacceptable frequency of frictional ignitions. Modifications offered primarily by the U. S. Bureau of Mines such as diffuser fans, water spray fans, and slow speed cutting motors were used with little success. However, laboratory tests conducted at the U. S. Bureau of Mines indicated that an increase in bit attack angle from 50° to 55°-57° significantly reduced the chances of the bit causing a frictional ignition. An experimental miner drum was built using this concept coupled with a new bit designed by the Bureau and manufactured by Hughes Tool Company that better protected the bit steel shank with a carbide cap. It was installed on a continuous miner and placed in an area of the mine prone to ignitions. 50,000 tons (45,500 metric tons) of coal were cut without a frictional ignition. When the miner was withdrawn for rebuild and a machine with an unmodified cutting drum placed in service, two ignitions occurred before 10,000 tons (9,100 metric tons) were mined. Other machines have been rebuilt and are in service, and to date none have been known to cause an ignition.

Jan 1, 1987

By Gamal Rashed, Zorica Radakovic-Guzina, Khaled Mohamed

"Underground coal mines use mechanical bolts in addition to other types of bolts to control the rib deformation and to stabilize the yielded coal ribs. Limited research has been conducted to understand the performance of the mechanical bolts in coal ribs. Researchers from the National Institute for Occupational Safety and Health (NIOSH) conducted this work to understand the loading characteristics of mechanical bolts (stiffness and capacity) installed in coal ribs at five underground coal mines. Standard pull-out tests were performed in this study to define the loading characteristics of mechanical rib bolts. Different installation torques were applied to the tested bolts based on the strength of the coal seam. A typical tri-linear load-deformation response for mechanical bolts was obtained from these tests. It was found that the anchorage capacity depends mainly on the coal strength. Guidelines for modeling mechanical bolts have been developed using the tri-linear load-deformation response. The outcome of this research provides essential data for rib support design.INTRODUCTIONThe design of rib bolting in U.S. coal mines is based on a trial-and-error process, which is insufficient to eliminate injuries and fatalities caused by rib falls. In the last 10 years, rib failures have resulted in 17 fatalities, representing 52% of the ground-fall fatalities in underground coal mines in the United States (MSHA, 2018). Recently, NIOSH researchers surveyed 90 sites in 14 underground coal mines in the Eastern United States and found that 11 mines are bolting coal ribs, with 4 of those mines using the conventional mechanical bolts and the others using fully-grouted bolts. NIOSH researchers are developing an engineering design procedure for rib support. Pull-out test programs for mechanical and grouted rib bolts were conducted to understand the rib control mechanisms of rib bolts. Only the test results of mechanical bolts are presented in this paper.Mechanical bolt (or point-anchored bolt) is a tensioned bolt anchored down the borehole with a mechanical expansion shell or a resin-grouted medium (Peng and Tang, 1984). The mechanical anchor bolt consists of a plug, a shell anchor, a headed bar with the top end threaded, a bearing plate, a hardened washer, and occasionally a friction-reducing washer. The shell anchor can be either standard or bail type (Figure 1). The standard type shell is held in place by a nut, while the bail anchor uses a strap to hold the shell in place (Peng, 2008). The diameter of the bar is generally 16 mm (? in) for the #5 bolt or 19 mm (6/8 in) for the #6 bolt. The diameter of the hole that the bolt is inserted into must be carefully controlled, since an oversized hole can result in poor anchorage (Moss, 1971). The anchorage is obtained by applying torque to the bolt head, which in turn pulls the plug down in the shell and expands the serrated leaves against the sides of the hole-wall. In the resin-grouted anchor, the resin replaces the mechanical expansion shell at the end of the hole. The anchorage is achieved by bonding between the resin, bolt, and the hole-wall."

Jan 1, 2019

By M. Prasad, G. M. Rao, A. K. Majumder, T. C. Rao

Froth flotation was employed to beneficiate a lean-grade siliceous rock-phosphate ore containing fluorapatite, the phosphate-bearing mineral. The main gangue minerals were quartz, iron oxides and aluminum oxides. After the rougher stage, four cleaning stages were required to upgrade the ore. The liberation size of the phosphate mineral was below 200 mesh, The reagent scheme consisted of commercial-grade sodium silicate and sodium oleate. The effect of reagent dosages, number of cleaning stages and pulp density on the efficiences of separation were studied systematically. A flowsheet was proposed for the processing of low-grade siliceous phosphate ore containing 12.1% P2O5, 55.36% SiO2 and 15.45% CaO. The flowsheet provided a useable phosphate concentrate containing 34.18% P2O5 and 14.20% SiO2 with a P2O5 recovery of 70.4% (the weight yield was 25.0%).

Jan 1, 1999

By H. Maleki

Interwest Mining Company has been collecting geologic data within the last decade in preparation for underground mining of extensive coal reserves in its Bridger Coal property in southwestern Wyoming. During a preliminary data collection program in 2000, Interwest Mining completed geologic investigations, including surface mapping, drilling, aerial photography, rock testing, and limited groundwater investigations. Core from 12 exploration boreholes in the area of interest was tested to determine the mechanical properties of the coal seam and the immediate roof and floor for evaluation of the feasibility of underground mining. Geologic investigations identified the presence of one 7-to-17-ft-thick coal seam throughout the reserve under 1400 ft of cover. During a geotechnical feasibility study in 2002, the authors reviewed available data while completing comparative analyses identifying critical deficiencies in these data. The study projected moderate-to-difficult mining conditions, considering the weak nature of near-seam strata and depth of cover, and thus recommended limiting the longwall reserves to an overburden depth of less than 900 ft. These shallow remaining reserves were located at depths within regional mining experience to justify longwall mining methods. Based on a critical examination of available data, Bridger proceeded with more detailed data collection to improve understanding of the depositional and structural setting of the reserve, hydrogeologic conditions, overburden strength, and premining stress conditions. Additional data was collected during 2003 and 2004 field programs. Since 2003, Bridger has had the opportunity to observe ground behavior in a series of up to 1200-1600-ft- long rectangular openings created during highwall mining. These narrow unsupported openings remained stable in the short term in large areas but the overburden subsided locally in the long-term depending on geologic and panel layout designs. These localized subsidence events allowed an examination of in-situ coal strength based on back analyses of stress. The unextracted highwall areas near Ramp 17 provided an ideal location to access the underground reserves using a 6-entry set of mains. The existing north-south oriented longwall layout for the Bridger Coal was selected by Bridger to maximize resource recovery from the D41 reserves while considering operational and geotechnical constraints. At 45-degrees deviation from preexisting joints and mild horizontal stress field, this orientation was considered beneficial for overall stability while using both sets of joints for facilitating the caving process. The present layout utilizes pillars on 80- to 90- by 200-ft centers, 17-ft entry spans and 750-ft wide longwall panels (Figure 1). Gate pillars are on wide spacings and are intended to act as abutment-abutment pillars to limit strata deformation over the gateroads during longwall mining.

Jan 1, 2008

By J. D. Grenia

The Buick Mine is a joint venture of American Metals Climax, Inc., and Homestake Mining Company located 120 miles by road southwest of St. Louis, near the village of Boss, in the 'New Missouri Lead Belt' (See Figure 1). Since start-up in 1969, over four million tons of lead-zinc ore have been mined and milled at Buick. Situated about 1,100 feet below the surface at an elevation 270 feet above sea level, the flat lying sinuous ore bodies are up to 250 feet wide, 85 feet high and several thousand feet long. Mineralization is galena, sphalerite and chalcopyrite in dolomite, Access to the mine is through two 18'Ø concrete lined vertical shafts - one for servicing and the other for hoisting ore (See Figure 2). The mine is being worked by a modified room and pillar method using both rubber tired equipment and a sub-level rail haulage. Ore is broken from first pass headings, back and bench faces and transported by load-haul-dump units to ore passes located on 900 foot centers. The ore is pulled from chutes on the sublevel 90 feet below into 15 ton bottom dump cars and delivered in 10 car lots by a 15 ton diesel locomotive to a 42" gyratory crusher (See Figure 3). A recent innovation has been the introduction of two 50 ton trucks with plans to haul up to 60% of the ore on the mining level to an ore pass feeding directly to the primary crusher (See Figure 4). Ventilation raises up to 16'Ø, which were originally planned for 900 foot centers, are now driven on 450 foot centers.

Jan 1, 1973

By J. Sulaiman Lubis

Indonesia is a developing country in Southeast Asia with a population of some 180 million people. It has a stable political environment and currently enjoys high rates of economic growth. Indonesia has abundant reserves of natural resources, ample for its own needs and for export. Energy resources include oil, gas and coal. The oil and gas industries are well established domestically and for export. In the last few years, though, coal industry development has been rapid. Coal resources from bituminous to lignite amount to more than 30 Gt (33 billion st). That is more than enough to meet domestic needs and provide significant amounts for export. Figure 1 shows coal basins in Indonesia. Coals in Indonesia are generally young steaming coals. They are very low ash and sulfur, high volatile, bituminous B and C. The Indonesian government's state coal company is called Perum Tambang Batubara. The company has actively promoted the development of its coal for domestic and export markets. In particular, the government has placed priority on non-oil exports of which coal is a major element. The government strives to honor all contractural commitments for the export of Indonesian coal from contractor, private and government mines. From 1987 through 1989, coal production has increased from about 3 Mt (3.3 million st) to 9 Mt (9.9 million st). Exports have grown from I Mt (1.1 million st) to 3 Mt (3.3 million st). These are significant increases for a small industry with limited infrastructure. But with growing investment and development, these production and export levels will increase substantially, and Indonesia will be a significant world supplier of coal in the 1990s.

Jan 1, 1990

By I. Duckworth

P.T. Freeport Indonesia operates a mining complex located in the highlands of Papua, Indonesia. This district consists of both underground and surface operations. The East Ertsberg Skarn System (EESS) is one of the major orebodies in this district. Subsurface caving of the EESS has been carried out in a systematic series of mining lifts dating back almost 30 years. Present production is from the third lift (Deep Ore Zone), which is scheduled to peak at 80,000 mtpd during 2009, with this rate sustained through 2015. The orebody is proven below the existing caving level, with the next vertical block called the Deep Mill Level Zone (DMLZ). This paper presents an overview of the DMLZ Mine based on recent feasibility level study. The mine is being designed for a peak production rate of 29.2 million mtpy, with 1,803 total ore draw points spread over a panel caving footprint of about 1.3km by 375m. The present reserves for this mine total 501 million tonnes. Located 1,400-1,800m below the original surface, the DMLZ will be one of the deepest caving operations in the world. Production is scheduled to commence in 2015. Discussion is provided on most design aspects including; caving methodology and layouts, geotechnical predictions and risks, ore handling systems, ventilation design and associated infrastructure, high-lift pumping system, cost estimation and expenditure scheduling.

Jan 1, 2010

By H. M. Garrett

Dr. Ft: L. Handy of Iowa State University's Engineering Experiment Station very handily reduced the relatively complex cement making process to ultimate simplicity: "Take two cups of crushed limestone; add one-half cup of clay or pulverized shale (plus perhaps some sandstone or iron ore; depending); mix thoroughly and grind up fine. Bake in white-hot oven at about 2,600 F. Cool. Add a tablespoon of gypsum: and, again, grind very fine. If you can do this for about a penny a pound, you can almost compete.' Before Dr. Handy's time, is the early days of the U. S. Cement Industry, from 1817 when the Erie Canal was started to 1895 when the first rotary kiln was built, this was the recipe, more or less. Dr. Handy's raw materials were deposited in a natural "cement rock" found in the Hudson, New York and Lehigh, Pennsylvania valleys. At first the natural rock was pulverized (not ground fine) and interlayed with wood for "baking" at about 1,800° F in a batch process vertical shaft kiln or beehive oven; then the calcined pozzalonic (lime and silica) product was cooled and ground fine for shipment in wooden barrels. Later, in 1871, true portland cement was made. The same natural rock was ground fine to make briquettes; interlaced with wood or coal in the "Beehives"; and baked at a clinkering temperature of about 2,6000 F to produce clinker (calcium silicates) which was ground fine for sale. In those days, the crude cements dropped in price from over 1 cent to 1/2 cent per pound. In 1895 the rotary kiln introduced-continuous instead of batch processing. The countercurrent process allowed the same raw materials (now finely ground to about 80% minus 200 mesh like face powder) to be fed at one end of the rotary kiln. Heat from a coal burner was introduced with combustion air at the other end to produce the requisite clinkering temperature. The clinker product was discharged for atmospheric cooling, mixed with gypsum, and again ground fine as face powder. The cement was sold primarily in barrels, later in jute or cloth bags, then paper bags, and now primarily in bulk truck and barge carriers. The price dropped to a 1/4 cent per pound by 1910, but with recent inflation it now sells for 2 cents per pound.

Jan 1, 1978

By Robert Sturk, Knut O. Halvorsen

"INTRODUCTION AND BACKGROUND The world needs visionary people to break new ground and bring development forward. The human race has an inherent power and lust to explore and push borders, but also to connect and bring people together. Transport of people and goods has through history been a key factor to develop societies and increase collaboration between people and regions. Today, in the era of globalization, efficient transport systems are still vital for further development. Often, ideas of bold projects, like long bridges or tunnels, have been raised long before those projects are realized and actually built. This shows that visions must gradually be transformed into feasible business cases and sustainable political solutions. In some cases also technological development is necessary to make visions come true. Isambard Kingdom Brunel, indeed a visionary engineer, completed the oldest underwater tunnel in the world when the Thames Tunnel in London was opened in 1843. This tunnel is still in operation and now part of London’s rail transport system. Another milestone for the tunnelling industry was passed when the 54 km long Seikan tunnel in Japan was opened in 1988 after more than 15 years of construction. This tunnel is presently the world’s longest railway tunnel. Together with the 50.5 km long Channel tunnel between the UK and France, which has the longest undersea portion 37.9 km, they constitute examples of pioneering engineering projects that bring the industry forward. In 2016, the Gotthard Base Tunnel will be opened and then becomes the longest railway tunnel in the world with its 57.1 km. The trend is obvious that tunnels throughout the world are getting longer and longer. The Brenner Basis Tunnel presently under construction will yet again break the record being 64 km long. Presently, a number of even longer tunnels are planned and under design, some of these also have very long subsea portions, e.g. Bohai Straight Tunnel (123 km), Irish Sea Tunnel (around 100 km) and the Helsinki – Tallin fixed link (approximately 90 km). Northern Europe sees an increasing demand on efficient transport corridors to meet the growth of freight transportation between the Scandinavian Peninsula and central-Eastern Europe. Sustainable solutions will be required, and a shift from road/maritime transports to rail is imperative. Consequently, this paper describes yet another visionary project, a fixed railway link between Sweden and Germany, the Shortcut, to enhance traffic between these regions and to make it greener. It is true that this project still requires some work from politicians, economists and engineers to be realized, however, building a 100 km long tunnel under the Baltic Sea may become reality sooner than we think."

Jan 1, 2016

By Graham J. Morgan

The following material is excerpted from a presentation Mr. Morgan gave recently to representatives of the financial community. Introduction 1982 was a period of challenge for United States Gypsum Company because of reduced market opportunity. Housing starts for the first 10 months averaged a seasonally adjusted annual rate of 1 million units, 9% below the comparable 1981 period when housing starts were the lowest in 35 years. Industry gypsum board shipments declined 9% from the already low levels of the same period in 1981. US Gypsum met the challenge with stringent cost reduction programs and aggressive action in the marketplace. In late 1981, anticipating market deterioration, the company's management adopted strategies to focus on two shortterm objectives: • Adjust operations to perform profitably in view of limited opportunities through more efficient operations and asset management. • Continue to strengthen U.S.G.'s resources and ability to take advantage of important market opportunities as the economy improves through selective expansion of production capacity in key growth markets. Concentration on these two objectives resulted in a nine month performance in 1982 that, while certainly not satisfactory by company standards, compared very favorably with that of principal competitors in terms of net earnings, margin on sales, and return on average stockholders' equity. To counteract limited market opportunities, U.S.G. focused on productivity improvement, cost reduction, expense control, and maximization of market penetration. Energy Use Improving performance encompassed all segments of operations. For example, efficient use of energy was a significant factor despite lower operating rates at most plants. Overall, in the third quarter of 1982 versus 1972, the company used 27% less energy per unit of production, a savings of $15 million in that quarter alone. These continuing improvements helped to partially offset constantly rising energy costs. A number of operations achieved superior results in the first nine months of the year compared with the same period in 1981. For example, gypsum board plants in Jacksonville, FL, and Sweetwater, TX, recorded 8% and 7% reductions, respectively, in energy use per unit of production. Paper mills in Oakfield, NY, Galena Park, TX, and Kansas City, MO, each reduced energy use more than 12%, while the Greenville, MS, ceiling products facility achieved a 16%o reduction. Safety Safety is another important element that received increased attention. U.S.G.'s safety performance over the past five years has consistently improved. In 1981 it was five times better than that of the gypsum industry; nearly 10 times better than all industry as measured by the National Safety Council; and almost 20 times better than all US manufacturing as recorded by the Bureau of Labor Statistics. In addition to human concerns, this excellent record results in significant dollar savings that directly affect company results. In 1981, U.S.G.'s pre-tax savings in claims, premiums, and related expenses were about $20 million compared to the industries in which it competes. For the first half of 1982 performance improved further, with a cumulative lost workday incidence rate per 200,000 man-hours worked of only 0.27, an all-time record. Expense Control Careful control of inventories and receivables also received special attention. As of Sept. 30, 1982, inventories were 29%, or $44 million, below the level of Sept. 30,

Jan 2, 1983