Search Documents

By Lana Alagha, Keitumetse Cathrine Monyake

The abstract discusses the synthesis and investigation of polyacrylamide functionalized chitosan polymers (CS-PAMs) as selective depressants for pyrite in the flotation of galena and chalcopyrite from complex sulfide ore. The study employed response surface methodology (RSM) to model and optimize the flotation process, varying parameters like the degree of deacetylation of chitosan, weight ratio of chitosan to acrylamide, and CS-PAM dosage. The developed RSM models effectively predicted iron and lead grades and recoveries, while optimization showed optimal pyrite separation from galena and chalcopyrite using CS-PAM synthesized from chitosan with a high degree of deacetylation and a specific chitosan:acrylamide weight ratio.

Apr 9, 2022

By Don C. White

The Vulture mine near Wickenburg, Arizona was a major gold producer from 1863 to 1942, having yielded about 11t(12.1 st) Au and 8t (8.8st) Ag. Gold occurs as coarse native metal and electrum in quartz veins and also finely dis¬seminated within a quartz monzonite sill and its silicified wall rock. The sill is semi-conformable within a Proterozoic volcaniclastic-dominated sequence, all dipping north about 35°. Early mining focused on the vein-hosted gold, particularly in the immediate hanging wall and footwall of the sill. Later efforts included some open-pit mining of the outcropping sill and adjacent altered and mineralized rock. Two sets of post-mineral faults have complicated the orebody geometry. The sill is a 350 m (1148 ft) long apophysis from a quartz mozonite stock to the west of the mine area. The stock has been dated at 85 my and contains abundant lesser gold occurrences in its core and about its margins. The Proterozoic rocks are notably lean in precious metals except where altered in proximity to the Creataceous stock and sill. Circumstances dictate an interpretation of epigenetic mineralization related to the Laramide intrusion.

Jan 1, 1990

By William R. Yernberg

The combined 75th Annual Minnesota Section of SME meeting and 63rd Annual University of Minnesota Mining Symposium was held April 9 and 10, 2002, in Duluth, MN. This year’s theme was “Keys to the Future: Imagination, Innovation and Technology.” The meeting consisted of plenary and technical sessions and a special General Manager’s Session. The technical paper presentations included concurrent mining and mineral processing sessions. In the General Manager’s Session, representatives from the region’s taconite operations presented the current status, concerns and future plans for each of their operations.

Jan 1, 2002

By K. R. Long

Until it was defunded in 1995, the U.S. Bureau of Mines maintained a Cost Estimating System (CES) for prefeasibility-type economic evaluations of mineral deposits and estimating costs at producing and non-producing mines. This system had a significant role in mineral resource assessments to estimate costs of developing and operating known mineral deposits and predicted undiscovered deposits. For legal reasons, the U.S. Geological Survey cannot update and maintain CES. Instead, statistical tools are under development to estimate mining costs from basic properties of mineral deposits such as tonnage, grade, mineralogy, depth, strip ratio, distance from infrastructure, rock strength, and work index. The first step was to re-estimate ?Taylor?s Rule? which relates operating rate to available ore tonnage. The second step was to estimate statistical models of capital and operating costs for open pit porphyry copper mines with flotation concentrators. For a sample of 27 proposed porphyry copper projects, capital costs can be estimated from three variables: mineral processing rate, strip ratio, and distance from nearest railroad before mine construction began. Of all the variables tested, operating costs were found to be significantly correlated only with strip ratio.

Jan 1, 2011

By Lisa Morrison

The 11th Annual Mineral Economics and Management Society (MEMS) conference was held April10-12, 2002, in Montreal, Quebec. It consisted of a series of technical sessions. Each paper addressed the economic issues that are related to the changes that many people believe are now required in the mining industry. Some of the papers were directed at how the mining industry will handle the changes that will be required in its philosophy and operations management. Of equal importance was whether the industry possesses the toolkit necessary to effect these changes and emerge stronger from its challenges.

Jan 1, 2002

By M. J. Gregory

The Pebble Cu-Au-Mo deposit in southwest Alaska is one of the world's largest porphyry deposits. The western part of the deposit was discovered by Cominco America in 1987, who sold the project to Northern Dynasty Minerals Ltd., in 2001. Northern Dynasty discovered the high-grade eastern part of the deposit in 2004 and went into a 50:50 partnership with Anglo American PLC in 2007, forming the Pebble Limited Partnership (Lang et al., 2008). The Pebble Limited Partnership has continued to delineate the deposit through diamond drilling with the most recent resource estimate released in February 2010 (Pebble Limited Partnership, 2010). The Pebble deposit mineral resources comprise 5.94 billion tonnes of measured and indicated resources grading 0.78% Cu EQ, containing 55 billion pounds of copper, 67 million ounces of gold and 3.3 billion pounds of molybdenum. Also delineated are 4.84 billion tonnes of inferred mineral resources grading 0.53% Cu EQ, containing 25.6 billion pounds of copper, 40.4 million ounces of gold and 2.3 billion pounds of molybdenum (Pebble Limited Partnership, 2010). Resources are calculated using a 0.3% Cu EQ cutoff. GEOLOGY AND MINERALIZATION Deposit Geology The Pebble deposit is located in the Kahiltna terrane, between terminal strands of the north-east-striking Lake Clarke strike-slip fault. This fault represents an accretionary boundary and separates the Kahiltna terrane to the north-west from the Peninsular terrane to the south-east (Lang et al., 2008). The Pebble deposit represents a large magmatic-hydrothermal system centered on a group of 90 million year old porphyritic hornblende granodiorite intrusions. An east-west cross section through the southern part of the deposit (Figure 1A) shows the typical relationships between the various rock units which host sulfide mineralization. Sub-parallel ~96 million year old granodiorite and diorite sills were intruded into siltstones of the Jura-Cretaceous Kahiltna flysch. In the west, these sills were cut by a ~96 million year old alkalic intrusive complex composed of porphyritic monzonites and monzodiorites and related intrusion breccias (Bouley et al, 1995). The mineralized 90 million year old hornblende granodiorite intrusions cut all rock types and comprise four small stocks in the western part of the deposit and a larger pluton in the eastern part of the deposit. Recent deep drilling indicates that these intrusions coalesce at depth. The strongest porphyry-style mineralization is centered on the eastern granodiorite pluton and extends into the surrounding rock units (Figure 1A). The western half of the deposit crops out at surface, whereas the eastern side is un-conformably overlain by a cover sequence of Late Cretaceous to Eocene sedimentary and volcanic strata. The deposit was tilted 20º to the east during the Eocene.

Jan 1, 2012

By William R. Yernberg

The Society of Economic Geologists (SEG) held its biennial conference May 14 through 16, 2006, in Keystone, CO. SEG is an international organization with about 3,500 individual members with interests in economic geology. The 2006 SEG conference theme was “Wealth creation in the minerals industry — integrating science, business and education.” The conference exceeded expectations with 705 participants, including 102 students, from 44 countries. The conference featured 30 oral presentations, 24 professional posters and more than 70 student posters. The conference also included a trade show with 50 vendors, numerous field trips, workshops and social activities.

Jan 1, 2006

By J. I. Schoenherr, G. Schubert, F. Demczenko

The currently known and used plastics and rubber recycling or sorting processes cannot be applied efficiently and economically due to large amounts of fine bulky materials (<3 mm). These wastes are mostly given to specialized landfill sites. Starting out from classical and traditional beneficiation processes a new research project was initiated to work on certain new ways to efficiently separate plastic material mixes. First basic results show that the use of new and improved thermal beneficiation methods is a great implementation in the field of plastics separation. The results can be further increased by a suitable combination with other methods as well. This leads to high-quality and almost pure separated plastics and rubber products, easy to sell on recycling product markets.

Jan 1, 2002

By Clark D. Harrison

This paper compares the ash slagging potential of Illinois No. 6 Seam coal: as raw coal; as commercially cleaned coal processed in a baum-jig plant; and as coal cleaned to a reduced ash specification at the Electric Power Research Institute&apos;s Coal Cleaning Test Facility. The comparison is based on: ? ASTM ash fusibility data ? A slagging index ? Gravity fractionation analyses of critical mineral matter compounds ? Comparative pilot combustion tests. The first three grounds of comparison are laboratory data; and the final comparison involves burning approximately 15 tons of each coal at CONOCO&apos;s 1.5 MBtu/hr (440 KW) test combustor. The evidence of these .four comparisons indicates that lowering the ash specification of coal before combustion can significantly improve the ash slagging characteristics of Illinois 90. 6 Seam coal.

Jan 1, 1984

By Brian Fulcher

While tunneling in Europe has been a tradition for centuries, many companies and countries have embraced tunnel innovation with considerable vigor and creativity. Indeed, local needs and site conditions have provided the initiative for improved means, methods, materials and equipment to complete progressively more challenging projects. Many recently completed tunnels have expanded tunneling technology and contributed to the development of highly specialized and productive equipment ? such as the mixed-mode tunnel boring ma-chine (TBM) presently in operation at the SOCATOP A- [ ] 86 road tunnel and the high-pressure slurry TBMs for the Westerschelde Tunnel in the Netherlands and Hollandsas near Malmo, Sweden. This paper describes some of the key technologies employed by European tunnel builders and designers including the New Austrian Tunneling Method (NATM), advanced earth pressure-balanced (EPB) machines, pres-sure-faced (slurry) tunneling machines as well as ?hybrid? or mixed-mode TBMs. While these tunneling methods and equipment generally involve significant equipment investment, they may also involve highly trained, experienced and specialized tunneling and support crews as well as materials and tools specifically developed to supplement or complement tunneling performance. For example, mechanized pipe arch placement substantially improves ground support measures and NATM advance and on larger tunnel cross-sections.

Jan 1, 2007

By Thomas Novak, Sampurna Arya, Joseph Sottile

Dust generation and its dispersion in a longwall mine pose significant health and safety issues. The concern is prominent at both the working face, where coal excavation exposes workers to high dust concentrations, and also in the return, where float dust accumulates. To address this issue, researchers at theUniversity of Kentucky designed and fabricated a flooded-bed dust scrubber integrated into a full-scale physical model of a longwall shearer. This mock-up was installed in the longwall test gallery at the Pittsburgh Research Laboratory (PRL) of the National Institute for Occupational Safety and Health (NIOSH). A full-factorial experiment was designed to measure the effectiveness of the scrubber on dust capture. Test results indicated dust reduction of up to 57% in the return airways. This paper presents the development of a computational fluid dynamics (CFD) model and its validation by comparing the simulation results against the experimental results. The CFD simulations show good agreement with experimental results with differences between + 6.9 and − 9.7%. The validated CFD model was used further to predict the scrubber performance under additional operating conditions, resulting in a dust reduction of up to 66.5%. With this level of success, the scrubber concept can be a game changer for the mining industry, and it can be utilized to improve health and safety in longwall mines.

May 26, 2020

By Levent Ozdemir, Bjorn Nilsen

For several recent TBM tunnel projects, unexpected ground conditions have been encountered, causing extra cost, considerable delay, and in some cases major claims. Undoubtedly, insufficient and/or irrelevant site investigation and testing are among the main causes of such incidents. The purpose of this paper is to review the main investigations and tests relevant for hard rock TBM projects, with particular emphasis on the considerable development that has taken place over the last few years. Also, guidelines for defining optimum scope and extent of site investigations and testing are discussed, as well as the importance of adjusting the investigations and tests according to complexity of the ground conditions and project type.

Jan 1, 1999

By D. G. Klaren

Self-cleaning fluidized bed heat exchangers are conquering the world for reason that they are able to solve any severe fouling problem in indirect heat transfer due to the circulation of cleaning particles through the tubes of vertical shell and tube exchangers. In most cases, these particles consist of chopped metal wire. Moreover, self-cleaning fluidized bed heat exchangers perform with excellent heat transfer at very low liquid velocities, which makes completely new designs of shell and tube configurations possible. Further, self-cleaning fluidized bed heat exchangers show a strong shear thinning effect in non-Newtonian liquids. All the above characteristics make the self-cleaning fluidized bed heat exchanger an ideal tool for the indirect heating of laterite nickel slurry in High-Pressure-Acid-Leach (HPAL) plants. Preliminary tests and evaluations of these heat exchangers have shown that the performance and price of these heat exchangers used for the production of nickel and cobalt from a laterite slurry, cannot be matched by existing conventional heat exchange systems. This article explains the principle, design, lay-out and enormous advantages of the self-cleaning fluidized bed heat exchange technology in a plant suitable for an annual production of approx. 45,000 ton nickel and 4,500 ton cobalt from laterite slurry through high pressure&apos;acid leaching.

Jan 1, 2002

By Zach Ahinga, Mike McRae, Dave Hopkins, Steve Klein

The San Vicente Pipeline project involves the construction of an 8-1/2 foot diameter water pipeline in an 11 mile long tunnel in San Diego, California. The tunnel will be excavated in extremely variable geologic conditions consisting of strong granitic and metamorphic rocks, weak sedimentary rocks, abrasive conglomerates, and mixed face conditions. This paper discusses the challenging geologic conditions and some of the key design evaluations for the project. Currently design work for the project has been completed and construction will be underway by mid-2005.

Jan 1, 2005

By E. C. Robertson

D.G. Wilder I found the suggestion that the amount of displacement of a fault can be numerically related to the thickness of gouge or breccia to be both intuitively satisfying and intriguing. I have long agreed that there is some type of relationship between the amount of gouge and the amount of displacement of faults. I congratulate the author for developing a numerical relationship between them. However, I am concerned that the limits for applying this relationship be fully understood. An underlying assumption in this approach is that there is either a uniform thickness of gouge or breccia along a given fault or the thickness does not vary widely. Since it is not always possible to confirm this, the displacements derived by this method should be viewed with caution unless significant fault extent can be observed. At the Nevada Test Site, in drifts constructed in granite for test emplacement of spent nuclear reactor fuel, we found a fault with 0.3 to 0.4 m (12 to 16 in.) of clay gouge. Within a few meters of this location, the fault had no clay gouge, but rather consisted of a highly fractured zone with significantly altered rock and some slickensides. Based on Fig. 1, the 0.3 to 0.4 m (12 to 16 in.) thickness of gouge would indicate a displacement in excess of 30 m (98 ft). However, no gouge thickness would indicate essentially no displacement. Based on a quartz vein that terminated on the fault, and is not identified nearby, an estimated displacement of more than a few meters was made. This estimate is consistent with that obtained using the regression line proposed in the paper if the 0.3 to 0.4 m (12 to 16 in.) thickness for the gouge is used. However, using the regression curves with zero thickness would not yield results consistent with what was observed in the field. Therefore, it is important to recognize that the suggested procedure would properly yield a range of probable displacements. ? *Work performed under the auspices of the US Department of Energy by the Lawrence Livermore National Laboratory under Contract W-7405-Eng-48. Reply by E.C. Robertson It is certainly true that the t (thickness) of gg-bx (gouge and breccia) on a fault does vary along the fault. My observations have been that near the termination of a fault, the displacement d is small and the t is also small, whereas the maximum d and t will usually be found in the central part of the fault. The information on gg-bx and t of the fault found in granite in the NTS tunnel by Mr. Wilder could be interpreted somewhat differently than he does. He speaks of the fault changing within a few meters from 0.3 to 0.4 m (12 to 16 in.) of clay gg to "a highly fractured zone with significantly altered rock and some slickensides," but no gg. The highly fractured rock may be taken to be bx, rock not so finely ground as gg but still crushed by the fault movement, equivalent to the gg in my usage, and probably occupying about the same t. Mr. Wilder&apos;s estimates for the fault in the NTS tunnel for t of 0.3 to 0.4 m (12 to 16 in.) and for d of a quartz vein, in excess of "a few meters," would place the point on the low side of the central trend line in my Fig. 1, at the lower limit. There is, of course, a problem with determining d using displacement of only one planar surface. It would be greater or lesser depending on the rake of the movement. Finally, estimating the d of a fault from its t should be made with awareness of our present uncertainties, as pointed out by Mr. Wilder. Although the central trend line in my Fig. 1 has a ratio of d/t of 100, I have put the limiting ratios at 10 and 1000. Understanding of the values of the ratio will be improved only with collection of more data, for which the discussion of Mr. Wilder is much appreciated. G.C. Waterman E.C. Robertson&apos;s paper provides significant information to a geologist attempting to deduce fault offset by noting the products of structural dislocation. However, considerable mapping in underground and open-pit mines, and examination of structures produced in different geological settings, have convinced me that gouge and breccia thickness are controlled by geological conditions and fault movement. The following paragraphs suggest geological variables that control them. 1. Depth of Loading A near-surface fault resulting from tensional stress has more breccia/gouge than is produced by a similar stress at considerable depth. A deep-loaded compressional stress may produce a linear zone of schist, or structural dislocation may occur along an earlier formed belt of schist. Such "shear zones" are common in Canadian mines in precambrian rocks. In neither case can offset be directly deduced by an analysis of the minimal gouge/breccia in the shistose rocks. At greater depth, stress may be partially to wholly relieved by flowage. I vividly recall first noting the regional "Midas Thrust" in the Lark mine, Bingham Mining District, UT (where we called the structure the North Fault). My recorded notes, as I remember them, showed a narrow gouge streak separated the `Jordan" and "Commercial" limestone units from impure, muddy limestone beds of uncertain stratigraphic position. The visible structure did not indicate the great importance of this premineral fault

Jan 12, 1984

By Xiaohong He, Qing Yu, Kaixiang Zhang, Rui Guo, Minghua Lin, Haoyu Miao

With the increasing depth of coal mining, the coal mine shaft traverses’ strata conditions become more and more complex. Shafts are often located in deep thick strata with unstable aquifers, and coal mining requires short-term rapid drainage of aquifers; the additional stress caused by aquifer water drainage is the direct cause of the shaft-lining failure. Over the years, many experts have conducted research on the shaft-lining damage caused by the consolidation and subsidence of the soil layer induced by the long-term drainage of the aquifer. On this basis, this paper conducts an in-depth study of the dynamic change of the pore water pressure of the aquifer in the short-term drainage and its influence on the response of shaft-lining strain and surface subsidence. The result shows that the Mandel effect of pore water pressure around the shaft-lining is obvious at the beginning of drainage, and the pore water pressure suddenly increases; the increase is independent of the drainage rate, which leads to the sudden increase of the shaft-lining strain value unrelated to the drainage rate. The result also shows that with the gradual dissipation of pore water pressure, the increase of shaft-lining strain is positively related to the drainage rate and negatively related to the drainage distance, and the variation trend of horizontal strain is greater than that of vertical strain, which appoints the main cause of shaft-lining damage.

Mar 16, 2023

By Ralph P. Hackl

Ore at the Congress gold property, located near Goldbridge, British Columbia, is extremely refractory with most of the gold disseminated in fine-grained arsenopyrite. Metallurgical testwork conducted by Giant Bay Biotech Inc. indicated that biooxidation pretreatment was capable of increasing cyanide gold recovery from the ore to greater than 90%. To determine if the bioleach process could be successfully scaled up, a 225m&apos; (7950-cu ft) commercial size bioleach reactor was built and tested at the mine site in 1989. At that time, the tank was the largest bioleach reactor ever operated. The objectives of the program were: • to ascertain if the biooxidation rates obtained in lab and pilot-scale reactors could be duplicated in a commercial scale tank; • to identify agitation conditions under which the process will function optimally; and • to demonstrate the bioleach process on a scale sufficient to satisfy the owners and potential investors.

Jan 1, 1990

By Jianbo Hu, Tao Zheng, Zhao Qihua, Rui Su

Rock mass discontinuities play a significant role in evaluating the stability of rock slopes. It is necessary to collect and analyze these discontinuities to fully understand the mechanical and deformational behaviors of rock masses. Based on the digital images of some slope faces, this paper proposes a framework based on machine learning for detecting and extracting discontinuities. First, digital images and photo poses are combined, the original scene is reconstructed, and 3D point cloud data are obtained. All captured point clouds can be mapped with each image by the direct linear transformation algorithm. Next, the detection machine learning algorithm is used to segment rock mass discontinuities on 2D digital images. Finally, based on the mapping relationship, the 2D digital images that were segmented are transformed into 3D point cloud data. The geometric parameters of the corresponding discontinuities can be extracted by the DBSCAN and the Skmeans algorithm and the characterization of specific rules. The proposed framework was evaluated utilizing a quantity of slope digital images in the Yebatan hydropower under construction, located in Sichuan Province, China, as a case study. The results illustrate that most deviations are less than 10° for the dip direction and dip angle, which verifies the reliability of the proposed framework and maintains acceptable measurement accuracy.

Nov 6, 2022

By S. Ilyas

Technical innovation in electrical and electronic equipment with new functions and design, stimulate consumer?s purchasing desire towards the latest equipments and this leads the rapid increase in the production of increased amount of waste materials Treason et al (2006) have reviewed the data on electronic waste generation in different parts of the world. Studies by Bertram et al (2002) have also affirmed that waste electrical and electronic components are the fastest growing waste category; this emphasizes the need for efficient recycling strategies. Recycling of electronic waste is an important subject not only from the point of waste treatment but also from the recovery aspect of valuable materials. However, recycling of electronic scrap is still quite limited due to the heterogeneity of the materials present in the products (Veit et al. 2005). A bioleaching based process offers a number of advantages compared to the conventional pyro or hydrometallurgical methods (Lee et al. 2007; Lee and Pandey, 2012). The advantages include simple, inexpensive (in some cases) and eco-friendly approach besides, generation of less active leach residue then other metallurgical processes. Though, biohydrometallurgical process has been successfully applied for the leaching of metals from ores (Olson et al. 2003; Rawling 2000), data pertaining to its application for the extraction of electronic scrap is still scanty. Recently, a few studies have been undertaken for extraction of metals from electronic scrap/printed circuit boards (Brandl et al. 2001; Faramarzi et al. 2004; Choi et al. 2004, Ilyas et al. 2007; Ilyas et al. 2010). These studies were conducted with mesophilic chemolithotrophic (Acidithiobacillus ferooxidans and Acidithiobacillus thiooxidans) or cyanogenic bacteria (Chromobacterium violaceum) or moderate thermophilic bacteria (Sulfobacillus thermosulfidooxidans). However, compared to bacterial leaching, fungal leaching has the following advantages: (i) ability to grow under higher pH, and thus is more suitable in bioleaching of alkaline solid waste (ii) a generally faster leaching process with shorter lag phase (iii) Chelation of excreted metabolites (e.g. organic acids) with metal ion, thus reduce its toxicity to the biomass (Burgstaller et al. 1993; Aung and Ting 2005). The specific objective of this work was to; ? Collection, isolation and enrichment of fungal strain ? Evaluate the abilities of Penicillium chrysogenum to leach metals from electronic scrap at various leaching modes (one-step bioleaching, two-step bioleaching, spent medium leaching, fresh medium leaching, leaching with deionised water and chemical leaching). ? Comparative study of all leaching modes

Feb 27, 2013

By W. J. Miles

At the beginning of the 20th century, barite was a mineral of minor importance in the USA. Its primary use was to extend lead oxide in white paint. Barite also added the special qualities of hiding power and flatness to paint. Because white lead sometimes turns black or yellow and barite does not, ground barite became a pigment on its own merit. Barium chloride was added to bricks before firing to stop efflorescence when exposed to weather. Barium carbonate or nitrate added luster and brilliance to glass. Barium chemicals were added to refining sugar, enameling iron, making oilcloths and paper collars, and in the manufacture of paper, artificial ivory, rubber and lithopone. Lithopone became a major paint ingredient in the 1920s; its use lasted until the 1950s, peaking at 150,000 metric tons of barite in both 1937 and 1947 for the manufacture of lithopone. Later in the 20th century, titanium dioxide replaced lead oxide, barite and zinc oxide in the coatings industry. In the 21st century, barite is used as a filler, extender, or weighting agent in products such as paints, plastics, and rubber. Some specific uses include its use in brake and clutch pads for automobiles, automobile paint primer for metal protection and gloss, add weight to rubber mud flaps on trucks, and add weight to the cement jacket around petroleum pipelines under water. In the metals casting industry, barite is part of mold release compounds. Because barite significantly blocks X-ray and gamma ray emissions, it is used as aggregate in high density concrete for radiation shielding around x-ray units in hospitals, nuclear power plants, and university nuclear research facilities. Ultra-pure barite consumed as liquid is used as a contrast medium in medical X-ray examinations. Barite is the raw material for barium chemicals, such as barium carbonate, which is an ingredient in faceplate glass in the cathode-ray tubes of televisions and computer monitors. In the 21st century, barite industrial uses account for an estimated 78,000 tons per year in the United States. Another barite use was patented in 1926 by the oil industry. In this patent, barite is primarily used as a non-abrasive weighting agent for drilling for oil and gas exploration and production. As a weighting agent, it provides the downward force in a water based or oil based drilling fluid for cutting through rock with a tri-cone diamond drill bit. In order to minimize the wear on the drill bit and drill stem, minimum abrasion of the weighting agent is preferred. In recent years in the USA, 95% of the barite produced and about 80% on a world basis are used as a fluid weighting material during the search for oil and gas. During the latter part of the 20th century, barite was used in the drilling mud of oil and gas wells, particularly for wells deeper than 2000 meters, and petroleum well drilling demand for barite became the mineral?s major end use during economic expansions after World War II and subsequent increased use of oil and gas in the USA. The profitability of oil and gas production had a strong effect on the number of drill rigs and consumption of barite. The United States was the leading petroleum well drilling country starting in 1970, reaching 4,530 drill rigs in December 1981, and was the largest consumer of barite. In the USA, record highs of about 2.6 million tons of barite produced and 4.3 million tons consumed were reported in 1981. From 1997 to 2006, barite production declined from 662,000 to 589,000 metric tons. However, USA imports increased from 1,470,000 to 2,530,000 metric tons for lump barite. World production of barite increased from 6,780,000 to 7,960,000 metric tons during the same period. Table 1 (see Appendix) lists USA production, imports and exports and world production from 1997 to 2006. Major sources of imported barite include China, India and Morocco. Table 2 (see Appendix) lists the USA imports and price of barite by country. China, India and Morocco are the three largest exporters of barite to the USA and the world. Vietnam is a new producer, beginning in 2006. IMPACT OF CHINA ON DRILLING GRADE BARITE In the 1970s or before, China began supplying barite to the world drilling market in order to help develop their economy. When China first entered the barite export market, their high production volume, low pricing and low ocean transport expenses to the Gulf Coast forced barite producers in the USA to supply only regional markets, such as Battle Mountain Nevada barite for the western and Rocky Mountain states and Canada. Until recently, it was China?s government policy for domestic consumers to use barite below the API 4.20 specific gravity specification, leaving higher grades for export, but this is no longer the case. In recent years the internal demand for barite in China increased tremendously as their economy rapidly developed. China reduced their former 15% VAT tax rebates to 5% for Chinese barite producers, and then eliminated all VAT tax rebates on December 15, 2006. On the supply side, some high-grade barite deposits in China have been depleted. In particular, the low heavy metals sources are less plentiful. Additional mine capacity is being developed, but the new mines are underground and therefore costs will be higher. China?s appetite for other raw materials has tied up a large portion of the world?s bulk vessel fleet, including Panamax vessels (preferred for barite ore transport). Ocean transport freight rates have increased in recent years, and receiving ports in the USA are congested with imports of higher-added-value products. The Panamax Index, which tracks maritime shipping rates, more than doubled in 2006. China has also devalued its currency from RMB8.30 to RMB7.80 per dollar. These factors are driving up the import price of crude and ground barite for drilling. In addition, in the USA, rail congestion and high fuel prices led to higher trucking rates, increasing the delivered cost of ground barite to oil customers. India is the second largest supplier of crude barite to the USA and world drilling market. It produces all of its barite from a single deposit in the Cuddapah region of Andhra Pradesh State. More than 90% of production comes from the State-owned Andhra Pradesh Mineral Development Corp., and the government continues to closely control production, export volumes, and prices. India saw a dramatic increase in barite prices as a result of its last 3-year tender in 2004. However, in 2004 and 2005 their shipments of crude barite to the USA were not significant. In 2005, India began supplying barite pulverized to meet API specifications to the Gulf Coast. In 2006, Indian production was reduced owing to severe flooding in November 2005 that curtailed mining until mid-April 2006. Morocco has been the third largest supplier of crude barite to the USA and world drilling market. In 2003 and 2004 their shipments of crude barite to the USA were not significant. In 2005, Morocco resumed shipment of crude barite to the Gulf Coast and began supplying barite ground to meet API specifications to the Gulf Coast.

Jan 1, 2009