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By Verya Nasri

The proposed Second Avenue Subway Project in New York City is approximately 8.5 miles long, up to a depth of 120 feet beneath grade and runs the length of the eastern side of the island of Manhattan from Harlem in the north to the financial district in the south. It will reduce overcrowding and delays on the existing parallel line, improving travel for both city and suburban commuters, and upgrading access to mass transit for residents of the East Side of Manhattan. This subway line will have 16 new stations providing transfers to the existing Metro-North commuter rail service and to New York City Transit subway lines and bus services. The first phase of construction includes two TBM rock tunnels 2.4 miles long and two new large and shallow rock cavern stations with clear span openings ranging from 70 to 100 feet and length in excess of 1000 feet with 615 feet center platform, coupled with low rock cover ranging from 20 feet to 40 feet. The design methodology for these large and shallow rock caverns consists of using well known empirical methods for initial estimate of support requirements and then two and three dimensional continuum and discontinuum analyses for verification of the selected excavation sequence and support system. This paper describes the analysis and design methodologies used for the two large and shallow rock caverns with insight into how to overcome the design complexities and construction challenges of the urban underground.

Jan 1, 2008

By A. D. Davis

The Gilt Edge Superfund Site is a former heap-leach gold mine that currently is being remediated in the Black Hills of South Dakota. Mine runoff water is treated before release from the site. The field pH, before treatment, is about 3, and the water contains arsenic and some heavy metals, in addition to sulfate concentrations of about 1400 to 1500 mg/L. In the Keystone area of the Black Hills, naturally occurring arsenic has been detected in ground-water samples from wells. Keystone City Well #4, which is not used currently, showed arsenic concentrations of 36 parts per billion (ppb) and sulfate concentrations of about 19 mg/L. With field samples of water from these sites, a limestone-based method was successful in reducing arsenic and heavy metals concentrations. The results are significant because previous research with the limestone-based method mainly had involved samples prepared with distilled water in the laboratory, in which interference of other ions such as sulfate did not occur. The research indicates the potential for broader field applications of the limestone-based removal method.

Jan 1, 2011

By John O. Marsden

"This article is an attempt to capture a presentation given at the 2016 SME Mineral & Metallurgical Processing Division (MPD) Luncheon held on Feb. 24, 2016, in Phoenix, AZ. It was presented as a tongue-in-cheek, lighthearted view of several of the issues facing our industry, while identifying some of the challenges and opportunities available to new engineers entering the industry today.Disclaimer• What you are about to read includes personal preferences, biases and occasionally arbitrary opinions.• Some readers may have dissimilar opinions on the contents and/or the rank order of the lists.There are eight top ten lists offered in this article: (1) Industry realities (2) Things a metallurgical or mineral process engineering graduate should do (3) Books every metallurgist should have on their shelf (4) Things I wish I had known (5) Legends of metallurgy (posthumous, with highlights) (6) Things we’ve forgotten (7) Mineral processing innovations of the past 20 years and, finally, (8) The future? For some items, additional context or clarification is provided after the item, while for other items no further explanation is warranted and none is offered. Top 10 industry realities1. Metal price cycles.2. Bigger is better (except when it isn’t).3. Ore grades declining across the board of metals/commodities.4. Ores becoming more complex.5. Three-fold increase in capital costs between 2004 and 2015.6. Three-fold increase in operating costs between 2004 and 2015.7. Less capital availability/challenging financial markets.8. Environmental constraints increasing.9. Socio-political constraints increasing.10. The mine manager is always impossible to work with.As Table 1 shows, there was more than a three-fold increase in gold operating costs between 2004 and 2014. The increases for copper, iron ore and other commodities were similar."

Aug 1, 2016

By Kiseong Hyeong, Young-Tak Ko, Gee Soo Kong

"The benthic environmental impact experiment addresses environmental impacts at a specific site related to deep-sea mineral resource development. For such a purpose, since 2010 we have carried out essential environmental research at both the BIS and a preservation site. We have acquired several tens multi- or box core samples at 32 sites within the BIS especially between 2011 and 2013, aiming to examine the basic properties of surficial deep-sea sediment as the potential source for deep-water plumes.In this study, we present physical the properties such as water content, shear strength and also geochemical properties such as major elements, rare earth elements (REEs), heavy metal contents at the BIS. Such proxies vary distinctly according to the Facies association. The lithology of all core sediments in the BIS corresponds to both Association Ib (Unit I/Unit II) and Association IIIb (Unit I/Unit III) on the basis of the KORDI classification (KORDI, 2004); Unit I is watery mud and dark grayish brown (10YR4/2) to dark brown (10YR4/3). Unit II is highly bioturbated mud and brownish yellow (10YR6/6). Unit III is very dark brown (10YR3/2) to black (10YR2/1) mud. Physical properties of these sediment types show that Association Ib is distinct from Association IIIb. The vertical profile of water content changed more sharply in Association IIIb probably due to compaction; water contents varied from 230 to 300% in Association Ib and changed from 200 to 250% in Association IIIb. The vertical profiles of shear strength are also quite different between Associations; the profile curve in Association IIb is much more gentle due to bioturbation."

Sep 1, 2014

By Antonio Rivera

On Nov. 13, 1985, Colombia's Ruiz volcano erupted, killing an estimated 25,000 people and burying several villages. Damages were estimated to be about $US300 million. The following is an account by SME member Antonio Rivera of the volcanic activity that led to the eruption. His account also includes a description of the geography and some geology of the affected area. Mining operations in the area were mostly unaffected, although some operations were forced to close until the roads leading to them could be repaired. Introduction The Ruiz volcano is located on the Central Cordillera of Colombia about 28 km (17 miles) southeast of Manizales, the capital of the state of Caldas. Ruiz is one of nine volcanoes that form a complex volcanic chain within the middle portion of the Central Cordillera. The Cordillera has 30 other volcanoes in the southern part of Colombia. Ruiz volcano Ruiz's elevation is 5200 m (17,060 ft). It is covered by an ice cap estimated to be 20 m (66 ft) thick at its summit, an area that covers 17 km2 (6.5 sq miles). Drainage is composed of several rivers that flow into the Magdalena River on the east and Cauca River on the west. The rivers flowing to the east are Guali, Azufrado, Lagunillas, and Recio. The rivers that flow to the west are Claro, Molinos, and Chinchina. There is a road from Manizales to El Refugio, a ski area located on the northeast flank of the volcano at 4800 m (15,750 ft) in elevation. The Ruiz volcanic complex was built in two stages. The first is a shield type of volcano (mainly lavas) formed about a million years ago. The second is a younger stratovolcano overlaying the ancient one. It consists of lavas and pyroclastics and was built over the past 500,000 years. Twenty-four eruptions of Ruiz are known to have occurred during the last 14,000 years. Its products mainly consist of lava flows, pyroclastic flows, mudflows (lahars), and directed lateral explosions. Historic eruptive record 1595 - Debris avalanche, blast, pyroclastic flows, mudflows, ash flows, and ash fall. 1828-1829 - Ashes (phreatic). 1831-1833 - Gas emissions and ashes. 1845 - Mudflows and pyroclastic flows. 1985 - Sept. 11- Fumarolic activity, phreatic eruption, ash fall, and small mudflows. 1985 - Nov. 13 - Ash and pyroclastic fall, major destructive mudflows (magmato-phreatic eruption). From 1845 through 1984, Ruiz volcano always had a slight fumarolic activity. It was restricted to the crater area. In November and December 1984, the fumarolic activity increased and the first ash emission and vapor-sulfur formation started. Small local earthquakes accompanied these volcanic activities. The volcano had a small erup¬tion on Sept. 11, 1985. It was manifested by phreatic explosions that ejected fragments of the vent and formed ash deposits 25 mm (1 in.) thick around an area 2.5 km (1.5 miles) from the crater. Fine material was blown by the wind and reached Manizales and neighboring areas, producing a small layer of ash up to 10 mm (0.4 in.) thick.

Jan 2, 1986

By J. K. Horbaczewski

The reclamation of an open dragline pit (Pond A3P-2) at the Gibbons Creek lignite mine in east-central Texas required neutralization of acid mine pit water. At the start of treatment with hydrated lime (Ca(OH)2) on March 28, 2000, the pond had partially filled with 913,000 m3 (740 acre ft) of pH 4.9 water. Another 666,600 m3 (540 acre ft) of pH 3.3 water was pumped in from an adjacent pit (PitA3P- 1). By the end of the project (July 5, 2000), a combined volume of 1,579,000m3(1,280ac-ft or 417milliongal) in PondA3P-2 had been successfully treated to pH 8.2 with 431 t (475 st) of lime. This was two to three times more neutralizer than laboratory trials and detailed chemical titration had predicted. The main reasons for the difference are thought to be the inadequate representation in a laboratory setting of some of the chemical reactions that occurred in the field, including incomplete mixing of reactants, reactions with clay minerals in the pit walls, the kinetics of biologically-mediated reactions and the kinetics of aluminum oxyhydroxide polymerization (aging).

Jan 1, 2002

By Ching-Liu Wu, John Hawley, Andrew H. Liu, James Chai

The Hatch Mott MacDonald/Bechtel Joint Venture team is designer and construction manager for the 5.25-mile Tunnel Segment of the overall 16-mile Silicon ValleyRapid Transit Project, which extends the existing Bay Area Rapid Transit (BART) system southward from Fremont to San Jose. The Tunnel Segment includes twin boredtunnels, mined cross passages, and three deep station excavations situated in highlyvariable ground, high ground water table, and a dense urban setting with high-risebuildings adjacent to the largest excavation. This paper will discuss design challengesthat have arisen with the excavations and the proposed solutions.

Jan 1, 2007

By G. D. Bates

INTRODUCTION The Magmont mine is a joint venture of Cominco American Inc. (operator) and Dresser Minerals, Inc. The mine-mill operation is located approximately 160 km (100 miles) southwest of St. Louis, MO, in what is commonly referred to as the "Viburnum Trend.” The Magmont mine is designed for a production rate of 3810.2 t/d (4200 stpd) on a 5-day week, three shifts per day basis. Initial production began in 1968. The mine is open stope, room-and-pillar, and essentially horizontal along the trend of the ore body. Briefly, the main geological structure can be described as a brecciated graben bounded by reverse faults. The ore body in cross section is shaped like a bell curve with some lateral extension at the lower part. Presently outlined ore is 609.6 to 762 m (2000 to 2500 ft) in width and 2133.6 m (7000 ft) in length. The ore varies in thickness from 4.87 m (16 ft) on the fringes to an average of 27 m (90 ft) in the high ore areas bounded by the reverse faults. Lead is the primary metal with zinc and copper secondary. MINE DESIGN The basic design of open stope, room-and-pillar mines has been described by several writers and need not be repeated here. (Anon., 1970; Bullock, 1973; Casteel, 1972; Christiansen et a]., 1970; and Lane, 1964) This discussion covers the mining sequence as applied to the particular problems at the Magmont mine, the use of equipment, and deployment of the work force. In the upper portion of the Magmont ore body is a layer locally called the False Davis shale. This layer lies below the true Davis shale, is normally interbedded with dolomite, is of varying thickness, and if mineralized, is included in the top pass of the mining sequence. In thick ore areas this layer will be 2.13 to 2.43 m (7 to 8 ft) in thickness and will occur in the upper portion of the pillars. Due to its incompetency the presence of this False Davis layer is of primary concern in mine planning and operation. Mining areas are divided into three basic groups by ore thickness. First are areas of ore up to 6.09 m (20 ft) in thickness. These areas are below the False Davis shale and are mined single pass with drill jumbo. Second are those areas up 13.71 to 15.24 m (45 to 50 ft) in height. The first 4.87-111 (16-ft) Pass is taken at the top of the ore and the back and pillars secured. Benching the lower portion(s) in 4.57 to 4.87-m (15 to 16-ft) passes is then done with either a drill jumbo drilling horizontally or a crawler drill drilling vertically. Normally these areas are below the Table 1. Productivities per Manshift False Davis shale. These areas may also be mined by back slashing, or overhand benching, where the first 4.87-m (16-ft) pass is taken at the base of the ore and successive 4.87- m (16-ft) passes are taken upward. A minimum amount of back slashing is done at Magmont since it requires repetition of roof control on each pass and roof control is the single largest stoping cost at Magmont. Ore left to provide a working platform oxidizes and is coated by oil spills thus reducing metallurgical recoveries. The third mining area is over 15.24 m (50 ft) in height UP to a maximum of 40.23 m (132 ft) and will encompass the False Davis shale. These areas are mined by first driving +15% inclines to the top of the ore body. The top pass is mined and the back is bolted and roof mats installed as a matter of standard practice to minimize roof problems as mining progresses downward. Once the back and pillars on the top pass are secured, benching begins on successive passes with either the drill jumbo or crawler drill. Pillars on all successive passes below the top pass are secured as necessary. While benching progresses below the top pass, the pass at the base of the ore body is mined leaving a sill of 4.57 to 7.62 m (15 to 25 ft) in thickness to be removed with the crawler drill in a retreating manner. Rooms are mined on a 1.57 rad (90") grid pattern to insure alignment of pillars where multiple passes are taken. Pillars are designed on a 17.98-m (59-ft) spacing with rooms up to 10.66 m (35 ft) in width. Heading widths are wide enough for the mobile equipment to turn without additional allowance for curves. The result is a flexible layout which provides a maximum number of headings available for high extraction rates and grade control. PRODUCTION Incentive Bonus Incentive bonuses play an important part in the mine production at Magmont. Production crews are trained to perform only one of the mining functions of drilling, blasting, mucking. or roof bolting. This specialization, or functionalization, is augmented by development to open all possible stoping areas as early as possible in the life of the mine. This insures that each crew will have enough headings to perform its specialty. The incentive bonuses increase exponentially as output increases. The lucrative incentive bonus coupled with the specialization of the production crews and proper mine development have combined to give the high productivities shown in Table 1. Development crews perform all mining functions in their area. The incentive bonus is paid on a per foot basis, Crews on different shifts working the same heading share equally in the bonus proportional to their contract hours worked.

Jan 1, 1982

By W. Scheetz

The Brewer Gold Mine is an open-pit, heap leach operation that processes about 122 kt/m (135,000 stpm). The mine is operated by Brewer Gold Inc., a subsidiary of Westmont Mining Inc., and is located near Jefferson, SC, about 80 km (50 miles) southeast of Charlotte, NC and 80 km (50 miles) northeast of Columbia, SC (Fig. 1). All of the ore to date has been produced from a breccia body of hydrothermal origin and a related smaller body of fault-controlled ore, known as the B-6. Reserves at the time the mine commenced production were 4.6 Mt (5.1 million st) grading 1.4 g/t (0.042 oz per st) gold. History Although some reports of a pre-Revolution War shaft at the Brewer are in the literature (Lieber, 1856, Nitze and Wilkens, 1897), gold was first produced in earnest from the Brewer Mine in 1828. Production occurred primarily from placer deposits south of the present mine workings. Lieber noted in 1856 that “every branch, gulch, ravine or even declivity of the main hill has been washed and rewashed.”

Jan 1, 1991

By James P. Morris, William H. Hansmire

The U. S. Department of Energy's (DOE) Yucca Mountain Project (YMP) is a scientific endeavor to determine the suitability of Yucca Mountain for the first long term, high level nuclear waste repository in the United States. The status of this long-term project from the construction perspective is described. A key element is construction of the Exploratory Studies Facility (ESF), which is being excavated with a 7.6 m (25 ft) diameter tunnel boring machine (TBM). Development of the ESF may include the excavation of over 15 km (9.3 mi) of tunnel varying in size from 3 to 7.6 m (10 to 25 ft). Prior to construction, extensive constructibility reviews were an interactive part of the final design. The intent was to establish a constructible design that met the long-term stability requirements for radiological safety of a future repository while maintaining flexibility for the scientific investigations and acceptable tunneling productivity.

Jan 1, 1995

By Nick Barton, Khosrow Bakhtar

Two plate load tests of 1 m2 area were per- formed in a pressure tunnel at the Rocky Mountain Pumped Hydro Project. Reaction for the 250 tons loading in this 10.5 meter diameter tunnel was provided by deeply anchored, diverging rock bolts, eight per load frame. Pressure build up to 2.5 MPa was provided by circular flatjacks. Rock deformation was recorded at depths of approximately 0.3, 0.9, 1.2, 1.8 and 3.3 meters using axially located multiple position borehole extensometers. The tests were performed in representative units of massive shale and thin to medium bedded siltstone. Stress was built up in four equal steps to 2.5 MPa, held constant for one week for creep monitoring, then unloaded, reloaded and unloaded over a period of one day. The most deformable unit was the massive shale which exhibited 1.3 mm of permanent deformation at the surface after the first loading and unloading cycle, which included 0.36 mm of creep. After the second loading-unloading cycle, the permanent deformation had increased to 2.6 mm, following a maximum deformation at the surface of approximately 3.6 mm. At the maximum stress of 2.5 MPa, the tangent modulus averaged 0.4 GPa when loading, and 0.3 GPa when unloading. The thin to medium bedded siltstone exhibited only 0.17 mm of permanent deformation at the surface after the first loading-unloading cycle, which included only 0.05 mm of creep. After the second loading-unloading cycle, the permanent deformation had increased to 0.27 mm, following a maximum deformation at the surface of approximately 0.53 mm. At the maximum stress of 2.5 MPa, the tangent modulus averaged 6.2 GPa when loading and 21.9 GPa when unloading.

Jan 1, 1986

By D. Babich, L. Alcorn, E. Spencer, A. Smith

Noise is one of the most pervasive health hazards in mining. A compilation of Mine Safety and Health Administration (MSHA) noise survey data for Fiscal year 1990 shows that approximately 40% of the total samples taken for longwall occupations exceeded the Permissible Exposure Limit (PEL) of 100% [Gigliotti et al. 1991]. In order to properly determine workers’ exposures on longwall coal mining systems, it is necessary to provide accurate baseline measurements for these mining systems. This research was designed to develop guidelines and test procedures for identifying all noise sources that are major contributors to the underground noise exposure of longwall coal mining system workers. Once the high noise sources are identified, promising engineering controls can be tested and evaluated to reduce the noise of the sources. The measurement system used to analyze the noise sources included stationary dosimeters in a documented repeatable pattern and a time-motion study of the cutting cycle and operator’s work cycle. Significant results from the underground measurements show that the highest sound levels recorded are at the stageloader discharge segment and tailpiece controls and remained at about the same level throughout the test.

Jan 1, 2007

By Richard Addison

Introduction A staccato beat rings out across the Australian bush. The stamps are at work, slowly pulverizing gold-bearing ore for a patient, grizzled prospector. This is the State Battery near Marvel Loch, a tiny 22.6-t/d (25-stpd) capacity gold plant operated by the Western Australia government. It is one of many such plants located in remote corners of Western Australia and the Northern Territory. They are miniature custom mills operated for the benefit of prospectors and small mine operators. These state batteries are so called because they are operated by state governments and because the principal item of machinery in the plants are stamp batteries. They are fascinating anachronisms - throwbacks to times past, a century ago, to the hard and heady existence of gold rush days. Marvel Loch plant Typical of these operations, and perhaps a trifle more sophisticated than most, is the plant near Marvel Loch, a small center for mining and farming about 400 km (250 miles) due east of Perth. Marvel Loch. The name evokes visions of a pristine lake set in a cool, green, misty glen of the Scottish highlands. Actually, it is probably a hot, dry salt pan somewhere nearby. Just where the "loch" is difficult to discern. There is no sign of it on the map.

Jan 7, 1986

By Richard F. Flanagan, Robert H. Marshall

The Republic of Singapore’s Public Utilities Board is implementing the Deep Tunnel Sewerage System Project. The project’s deep tunnel component, 48 km of deep, large diameter sewer tunnels has been successfully completed (the works are in the defects liability period). Six International Design/Build tunnel contracts utilized eight Earth Pressure Balance TBMs ranging up to 7.23 m in diameter to deal with varied ground types ranging from deep soft clays to fresh granite. Numerous access/workshafts were constructed and using various support systems. This paper provides an assessment/overview of the tunnel contracts, tunnel excavation methods and equipment, and the shaft systems. Suggested enhancements to similar future projects are provided.

Jan 1, 2007

Narrow vein mining, with enough challenge and also where the cutting edge technology can be applied, is still a very important and exciting portion of the mining industry. Based on the deposit characteristics, the most flexible mining method, cut and fill, has been being tested mining this high grade Northern Nevada property, Hollister, since the year of 2008. In the last three years, 254,000 tons of ore were hauled out of the portal and 23,000 feet of development were excavated underground with the winning of several safety and environmental awards. Together with mine geology, the essential segments include mining cycle, ground control, ventilation, grade control and backfill method in cut and fill stopes were covered in this paper.

Jan 1, 2012

By J. S. Heath

Many disputes related to environmental issues in mining are resolved through often-antagonistic negotiations in a regulatory context or through litigation. These approaches are certainly the best choices for resolving certain disputes. However, just as no single remediation technology is the right fit for every site, so no single dispute resolution process is the best choice for every situation. This paper introduces a range of dispute resolution alternatives (from collaborative decision making through mediation, arbitration, and litigation). Especially when money is tightest, cost-effective dispute resolution(and the outcomes that can accompany it) can have an impact on the bottom line.

Jan 1, 2000

By M. G. Bakker, D. D. Murphy, D. R. Spears

The US Bureau of Mines studied the mechanism of shear flocculation of silica with stearic acid. At pH 6 and 12, shear flocculation of silica was not observed with the addition of up to 4.5 x 10-4 M (5 lb/st) stearic acid. However, in the presence of 0.1 M NaCl at pH 6, shear-flocculation was observed at stearic acid concentrations = 10-4 M (22.5 lb/st). Adsorption of stearic acid on silica was studied using stearic acids spin-labeled with a doxyl group. The presence of the spin-labeling group did not greatly affect the shear flocculation properties of stearic acid. Adsorption of labeled stearic acid on silica was measured as a function of surfactant concentration with electron paramagnetic resonance (EPR) spectroscopy and gas chromatography (GC). The GC results indicated that the stearic acid was predominately adsorbed on the surface at concentrations above 10-4 M. From the EPR spectra, the formation of aggregates of stearic acid was apparent at concentrations of approximately 10-5 M (22.5 lb/st). The results are discussed in terms of a possible mechanism for shear flocculation.

Jan 1, 1995

By Edward S. Plotkin, Gary A. Almeraris, Thomas F. Peyton

The lining of the tunnel and shafts for a new section of New York City's- water system required extensive components to produce, deliver and place a continuous tunnel linning. The project placed approximately 153,000 CM (200,000 cy) of concrete for 5,340 M (17,520) of drill and blast 7.3 M (24 ft.) ID tunnel, located at depths of 152 M (500 ft.) to 213 M (700 ft.) . This section of tunnel will be connected to the surface water distribution system via four shafts of varying diameters ranging from 5.8 M (19 ft.) ID to 1.5 M (5 ft.) ID . All work was done beneath the streets of Manhattan under the rigid constraints of the City of New York and the Bureau of Water Supply regulations.

Jan 1, 1987

By Lawrence Pelham

Introduction Fluorspar demand or consumption has been taken for granted in recent years, except for those that produce, market, or consume the commodity. Thinking used to be that as the steel and aluminum industry goes, so goes fluorspar. This is much less true today. The industry is becoming more dependent on chemical industries that feed primarily off hydrofluoric acid (HF) production. The US Bureau of Mines (USBM) published an assessment of world fluorspar reserves and resources. It created a foundation of valuable data that can be used to monitor fluorspar availability. Celebrations were held this year commemorating the 100th anniversary of the isolation of fluorine. The US and other countries continue to struggle with the controversy of ozone depletion and the effect of fluorocarbons on the atmosphere. Goals for the government's strategic stockpile are being reevaluated. The market for fluorine chemicals is changing and diversifying, making it a challenge to assess and forecast fluorspar/fluorine demand. US production and distribution Fluorspar Fluorspar shipments from US mines reached an all-time high near the end of World War II in 1944 at 375 kt (413,800 st). Eighty-two mines produced more than 453 t (500 st) each, and 10 mines produced more than 9 kt (10,000 st.) each. Illinois supplied 43% of total shipments. Consumption in 1944 was 372 kt (410,200 st), of which 56% was used by steel producers and 32% by HF producers. This was the last year that US production exceeded US consumption. The post-World War II record for fluorspar shipments occurred in 1951 at 315 kt (347,000 st) 58 mines produced more than 453 t (500 st) and eight mines produced more than 9 kt (10,000 st).

Jan 11, 1986

By Steve Kral

Competition from foreign coal producers could displace as much as 9 Mt/a (10 million stpy) of US coal bound for power plants located near waterways. But, according to a Maryland-based coal consultant, it could be worse. Theoretically, about 52 Mt (57 million st) of domestic coal could be vulnerable to imports by 1990, said Forrest Hill, of Hill & Associates of Annapolis. Hill was speaking to about 150 coal industry executives and experts at the third annual Coal Marketing Strategies Conference in November. Most were at the Denver, CO conference to pick up tips on how to sell coal in an oversupplied market. Imports threaten domestic markets Of the 200 utilities studied by Hill and his staff, 119 are situated near major waterways, he said. However, most of those waterways are not equipped to handle coal from the shipping lanes. Good news for US coal producers. But don't breathe too easily. Foreign coal still poses a major threat to domestic markets, Hill continued. The strength of the US dollar is an obvious factor. But easy access to US utilities located on waterways combined with low rates for ocean vessels give foreign producers another edge. And foreign mines are typically low cost producers. For example, Hill said Colombia's huge Cerrejon mine can deliver coal to an Illinois power plant for $47.87/t ($43.39 per st). That compares to $52.85/t ($47.95 per st) from a Kentucky coal mine. Also, Colombian coal producers can generate a cash flow even if the coal sells for $27.50/t ($25 per st). The main competition US producers face from abroad, as Hill sees it, comes from Australia, Canada, Colombia, Poland, South Africa, and, perhaps, from Venezuela. Domestic producers, however, do have some things going for them. Most US coal buyers, Hill said, "are not wild about the idea of buying foreign coal." A 10% price advantage or pressure from public utility commissions would be needed to force some of them to buy foreign coal, he said. Some of the utilities contacted said they would not commit to more than one-third of their stockpiles to a foreign source. Another advantage for US producers is that they have room in their long-term contracts to cut prices and still maintain a profit, Hill said. Railroads, too, have high profit margins written into their rate structures. They are also aware of the import threat. Therefore, they may reduce their rates accordingly to keep their markets. Marketing's role The energy price shocks of 1972 and 1976 caused major adjustments in world economics. Coal was no exception. High oil prices caused many utilities to look at less expensive coal. As the market improved, coal prices began to respond, said R. Gale Daniel, of Anaconda Minerals Co. But clean air legislation and the strengthening dollar caused havoc in the coal markets, he said. The price of oil crashed, taking with it predictions of record coal use. The result is an oversupply of coal that has led to price cutting. Now, coal marketing must be recognized in its "true leadership role," Daniel said. Marketing people must know when to use spot sales to balance production objectives and maintain cost-effective-

Jan 1, 1986