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By David D. DiPonio, John DiPonio, Roger Van Omen

The greatest opportunity to attain the most favorable prices for underground construction projects occurs during the competitive bidding period. The Owner, Engineer, and Contractor need to have a thorough understanding of the project’s design concept, how it is going to be built, and what it is going to cost. This paper presents the opinions of three engineering professionals who are well established in their sectors of heavy civil underground public works construction. This paper will outline and summarize the considerations that the three principal contracting parties of Owner, Engineer, and Contractor need to make to obtain good price quotes at the time of bids.

Jan 1, 2005

By G. W. Heunisch

G.A. Carmody and L.B. Anderson We wish to comment on the paper by G.W. Heunisch (MINING ENGINEERING, January 1987), which raised several important points regarding treatment of acidic waste waters. This paper confirms, in part, tests carried out by Allyn Corp. Allyn is the manufacturer of the proprietary product Alka-Ment, one of the materials that Heunisch tested. The first point is the extreme sensitivity of the sedimentation rate on the nature of the treatment material used. This apparently results from differences in nucleation of the metal hydroxides, and is consistently higher for Alka-Ment. This decreased sludge volume is also observed when Alka-Ment is combined with flocculants, such as organic polymers (see Table 1). Our second point is to emphasize that Heunisch's work shows how dependent the sludge volume is on pH. It is common practice to overtreat AMD by raising pH to 9 or 10. This practice, in addition to being wasteful of material, actually decreases the density of the resulting sludge, probably by creating charged particles that do not readily coalesce. When treating with Alka-Ment, we recommend that the treatment be monitored by testing both pH and dissolved iron. For both tests, it is important to allow adequate time to elapse between treatment and measurement, so that dissolution of alkali, aerobic oxidation of iron, and precipitation of the metal hydroxides are nearly complete. Our tests have indicated that from 30 minutes to one hour is commonly required. Only in this way can a minimum pH be attained, with adequate treatment, denser sludge, and lower treatment rates achieved. Thirdly, Heunisch correctly recognizes that ASTM titration of Alka-Ment does not reflect the true treatment value available in a unit of Alka-Ment. Our work at Allyn indicates this is a most important consideration when evaluating various materials for the treatment of acidic waste waters. While we were unaware of Mr. Heunisch's work, we welcome comparisons between Alka-Ment and any competitive products readily available for field use. Allyn has hundreds of hours of laboratory and field data we are ready to share with interested parties treating acidic waste water.

Jan 9, 1987

By D. Tao

The reverse cationic flotation is the most widely utilized flotation method for concentrating iron ore. In such a process quartz is often floated with ether amines (R?O(CH2)3?NH2) partially neutralized with acetic acid. However, it is well known that the cationic flotation of hematite does not work well if a certain amount of slime is present in ore slurry. To improve flotation performance, starch is often added to the flotation feed to selectively flocculate and depress the iron minerals and sodium silicate is used to disperse the silica gangue. The present study was conducted to improve the flotation efficiency of iron ore flotation by use of a new type of depressant for clay and iron minerals, i.e., GP clay binder. It is postulated that the GP clay binder minimizes slime adsorption on quartz and hematite particles by agglomerating clay particles to reduce their surface area. It is further theorized that the clay binder helps depress hematite flotation due to its unique chelating ability to iron ion. The results from this study clearly show that the GP clay binder is an effective depressant in iron ore flotation. When it was used as a substitute for corn starch, it increased concentrate grade from 60.78% to 67.67% and increased iron recovery from 71.96% to 72.90%. The combined use of GP clay binder with corn starch produced even better flotation performance, increasing concentrate grade to 67.08% and iron recovery to 78.15% simultaneously. Key words: Clay Binder; Depressant; Iron Ore; Flotation.

Jan 1, 2009

By R. Hedin, M. Dunn

The Pennsylvania Department of Environmental Protection (US EPA 319 program) provided funding to aid a public-private effort in the installation of an environmentally-friendly system to treat abandoned mine drainage at Jennings Environmental Education Center (Pennsylvania Department of Conservation and Natural Resources). Through this cooperative effort among state and federal agencies, mining, excavation, and environmental companies, college and home school students, Girl Scouts, and volunteers, a successful multi-component passive system, readily accessible for upgrades and public education/research activities, was built. 90 people were directly involved in construction of this award-winning system and about 1000 people annually benefit from the educational opportunities.

Jan 1, 2002

By H. Kinilakodi

In 2008, the authors developed a methodology for assessing underground coal mines for high risk for major-hazard events. It focused on major hazard-related violations of safety standards associated with high-risk conditions. Later using a sample of 103 mines with 2008 and 2009 data, injury measures and MSHA citation data were combined into a Safe Performance Index (SPI). The SPI was used to assess the relative safety-related risk of mines, including by mine-size category. In this paper, comparisons are made of SPI-associated, normalized safety performance measures across mine-size categories, with emphasis on small-mine safety performances as compared to large and medium-sized mines.

Jan 1, 2011

By R. W. Smith, Z. Sadowski

INTRODUCTION Problems encountered in barite flotation from various waste materials such as spent drilling muds are likely to be closely connected with the effect of contaminant metal ions and other chemicals on the flotation. Investigations on the recovery of barite from tailings ponds and mining wastes (Sullivan and Lamot, 1981) have shown that such barite materials can contain large quantities of carbonate and silicate minerals (including clay minerals). Also iron oxide slimes can be present. From these substances, cations such as Ca2+, Mg2+, Fe2+, and A13+ can potentially dissolve and be present in the aqueous phase accompanying the various minerals. These ions and their hydrolysis products can have a substantial effect on any subsequent flotation scheme. The present study investigates the effect of the noted ions on both the stability and electrokinetic behavior of barite suspensions. Some adsorption (abstraction) experiments were also performed. Experimental materials and methods The barite used was a high-purity, naturally occur¬ring mineral sample (Kings Creek, SC). The material was ground in a porcelain mill and a fine fraction (mean particle size 11.49 µm) separated out by air elutriation. The mean size was determined by an aqueous sedimentation method using a CAHN electro-balance. In the method, an 0.6-g sample of the barite was dispersed in 450 cm3 of pH 7 water containing 0.01 g of sodium tripolyphosphate. The mean particle size was denoted X0. The stability of the barite suspensions was determined by a comparison of the mean size of the investigated barite suspension aggregations with the mean size of barite powder determined in the presence of sodium tripolyphosphate. The mean sizes (X) of the barite aggregations were determined using the same amount of water and barite sample as in the measurements of dispersed barite particle size but without the presence of polyphosphate. The ratio X/Xo is thus a measure of the stability of a suspension (the greater the ratio, the less stable the suspension). The adsorption (abstraction) experiments were carried out in polyethylene bottles containing 1 g of barite powder in 200 mL of solution. The solids were added to a solution containing a known concentration of metal chloride salts (AlCl3, FeCl2, MgCl2, and CaCl2) . The pH was controlled by both HCl and NaOH addition. The suspensions were agitated in a shaker for three hours. The final ion concentrations in solution were determined by atomic absorption analysis. The electrokinetic measurements were made using a Komline-Sanderson Zeta Reader in a conventional manner. All experiments were carried out in the presence of 1.0x10-3 k.mol/m3 NaClO4. Experimental results Figure 1 shows the zeta potential of barite particles as a function of pH in the presence of iron(II). The

Jan 1, 1988

By J. F. Lupo

Heap and valley leach operations rely on solution collection piping placed within the heap to enhance both solution recovery and to assist overall solution management. The most common piping used in leaching operations is solid or perforated High Density Polyethylene (HDPE) pipe and Corrugated Polyethylene pipe (CPE). These pipes are widely used because of their low cost, ease of installation, durability, and flexibility. The typical recommended maximum design depth of burial for HDPE and CPE pipes is on the order of 30 meters (100 feet). However, ore heap heights at many facilities exceed 30 meters and some are now approaching 180 meters (600 feet) in height. At very high ore heap heights, the stability and performance of HDPE and CPE pipes becomes a critical issue for leaching facility design and operation. Failure of solution collection piping can lead to poor solution recovery, high hydraulic heads on the liner system, and in some cases, unstable ore slopes due to high solution pressures near slopes. This paper presents a review of methods that have traditionally been used to evaluate pipe stability under high normal loads. A common shortcoming of these methods is the inability to account for beneficial effects of ore arching around pipes and the time-dependent creep (stress relief) behavior of polyethylene (PE) materials. A new analytical approach is developed and presented which includes the effects of ore arching around pipes and creep of PE materials. The results of the new approach show that PE pipes will deform under high heap loads, but can remain stable and functional. Pipe stability is shown to be dependent on the type of pipe backfill and initial backfill compaction. The new approach represents a useful tool for designing applications for PE pipe under high normal loads.

Jan 1, 2001

By J. P. Wilson, T. Cook, H. Kling

The Tessenderlo-Kerley Leachprocess has been shown to be effective in the removal of residual copper from molybdenite concentrates. Concentrates of varying mineralogy, including those containing relatively large amounts of chalcopyrite, have been successfully leached on laboratory and pilot plant scales. The lixiviant system is ammonia andammonium bisulfite with air / oxygen addition. An abrasive is added which greatly enhances the kinetics, and it is subsequently screened out and reused. The dissolved copper is easily recovered using existing technology. Extraction profiles, reagent consumptions, and mineralogical data are presented.

Jan 1, 1999

By Alafara A. Baba, Yakubu A. Dallatu, Kehinde I. Omoniyi, Shemang Y. Chindo, Edith B. Agbaji

As a result of the rise in global demand for pure copper, there is urgent need to consider the processing of low-grade chalcopyrite ores. Ammoniacal leaching solutions have been reported as an effective and efficient leachant for the dissolution of chalcopyrite. This work reports different parameters that influence the leaching kinetics of a Nigerian chalcopyrite-rich siderite ore obtained from Wase Local Government Area, Plateau State, Nigeria, and assayed as 11.30 wt% of Cu. At the optimum leaching conditions (0.4 mol/L NH3-( NH4)2SO4 leachant concentration; 75 °C reaction temperature; 45 μm particle size), the extent of chalcopyrite ore dissolution reached 87.4% within 120 min. The dissolution rate was affirmed to conform to the diffusion control mechanism with the activation energy, Ea, of 38.84 kJ/mol and a reaction order of 0.661 for the leachant concentration being established. The leaching mechanism was affirmed by characterizing the raw ore and the leached product by XRD and SEM-EDS analysis. Ascertaining optimal leaching conditions for copper using alkaline leachant is advantageous from the environment and economic points of view.

Jan 6, 2023

By T. Grammatikopoulos, C. Gibson, M. Aghamirian

"Lithium is a soft, silver-white alkali metal with atomic number 3. As of 2015, the end use of lithium was estimated to be as follows: lithium-ion batteries (35 percent), ceramics and glass (32 percent), lubricating greases (9 percent), air treatment (5 percent), continuous casting mould flux powders (5 percent), polymer production (4 percent), primary aluminum production (1 percent) and other uses (9 percent) (Jaskula, 2014). Lithium is found in brine lake deposits containing lithium chloride and in hard rock pegmatite deposits. It can be sold in a range of product types; as mineral concentrate, brine, compound (lithium carbonate or lithium hydroxide) and metal depending on its intended end use (Goonan, 2012; Jaskula 2014).In the 1990s, the United States and Chile were the largest producers of lithium globally, primarily from brine operations (Ober, 1994). Most of the lithium compounds produced during this period were consumed in the glass, ceramics and aluminum industries. In the 1980s and 1990s, there were two major lithium operations in the United States: brine operations at Silver Peak, NV and a spodumene mine and lithium carbonate/lithium hydroxide plant in Kings Mountain, NC. The Kings Mountain operations ceased production in 1991 and were eventually dismantled in 1994. Brine operations were also active in Argentina and Chile, while the largest lithium ore deposit in the world was operated at Greenbushes, Western Australia. During this period, it was predicted that major shifts in demand for lithium would come from the success and widespread use of electric vehicles (Ober, 1994).Lithium is still produced from the brine operations at Silver Peak. But in more recent years, Chile has become the world’s leading producer of lithium carbonate from brines. Australia has maintained its position as the world’s largest producer of lithium mineral concentrate, the majority of which is exported to China to produce lithium carbonate and lithium hydroxide (Jaskula, 2014).A spodumene concentrate was also produced at the Tanco Mine in Manitoba, Canada beginning in the 1980s through to 2010 when lithium operations were suspended due to fluctuations in the lithium market price (Martins et al., 2013)."

Jan 7, 2017

By John Oskam

In 1873 Barton tines Corporation mining Garnets for Abrasives. From providing bulk Garnet Concentrate the technology has advanced to the sizing and classification of micron sized particles utilizing a Barton process. Processing of Garnet involves extensive quality control at all steps, first to insure product purity and secondly to insure the correct size range. Barton Mines produces about 30 different sizes of Garnet products to lead the world in the manufacture of technical abrasive Garnet. This paper will examine the present technology of Garnet Abrasive Manufacture and the specification to which the sizes are produced as well as some of the markets served.

Jan 1, 1980

By R. C. Freas

Composite materials are finding new applications daily, ranging from automotive parts to synthetic lumber. The variety of applications seems almost limitless. However, these emerging products bring both new opportunities and new challenges to the field of industrial minerals. One of the primary challenges is from alternative materials other than industrial minerals. Thus the question is asked whether industrial minerals will truly benefit from the growth in market applications for composite plastics. This article highlights some of the opportunities for industrial minerals while focusing on performance and competitive demands on mineral products intended for use in this developing market.

Jan 1, 2000

By Douglas B. Silver

The key to unlocking value is to find opportunity where others have missed it. How does a company find value in a thoroughly explored asset? This article explores the approach taken by one company and the results it achieved from working this problem. The town of Shafter is located on a small bend in the road in west Texas' Big Bend Country. Its past emulates the glory days of so many other mining camps. A discovery was made, fortunes were built and World War II shut down the operation. The Shafter deposit continues to be one of the larg¬est undeveloped primary silver deposits in North America. Gold Fields Mining Co. recognized the area's potential in 1977 and embarked on studies to reopen and develop the district. Gold Fields spent $16 million on the Shafter project. It drilled more than 86,240 m (282,940 ft) in 475 holes, sunk two shafts and developed 1,550 m (5,100 ft) of underground workings. Today, the mothballed 447-kW (600-hp), single-drum Nordberg hoist and permanent production-type, single-compartment headframe continue to crown the shaft. Other buildings onsite house compressors, mine pumps, spare parts, drill core and other supplies. All these items look as though they arrived yesterday. By 1982, Gold Fields had completed an extensive feasibility study with ambitions to. construct a 1.36-kt/d (1,500-stpd) agitated cyanidation mill and base metal gravity circuit. Reserves at Shafter stand at 4.23 Mt (4.67 million st) grading 193.5 g/t (5.65 oz/st) silver. Gold Fields planned to produce 71.5 t/a (2.3 million oz/year) of silver at a head grade of 196.2 g/t (5.73 oz/st) silver with a 77% recovery rate. Cash costs were projected to be $5.54/oz with an anticipated initial and total capital cost of $46.2 million and $51.3 million (1984 dollars), respectively. The study assumed a silver price of $8.60/oz that has not been seen since the Hunt brothers quit buying silver. When silver prices declined, Gold Fields put the property up for sale.

Jan 1, 1999

By M. M. Rajkovich, L. Adams, J. J. Zaluski, S. Gardner

In 1998, Kentuckians for the Commonwealth filed an Administrative Petition with the Kentucky Natural Resources and Environmental Protection Cabinet to designate 8,903 +/- hectares (22,000 +/- acres) on Black Mountain, which contains the state’s highest point, as unsuitable for mining. A fast track legislative process was triggered which could have "taken"100 million tons of coal reserves or, in the alternative, imposed severe restrictions on mining. Even with all parties represented by reasonable individuals, this process can be extremely cumbersome and expensive. The legal and technical preparation for this unusual hearing process as well as issues and strategies of the negotiated resolution are reviewed.

Jan 1, 2000

By T. W. Camm

Aristotle made the observation that man is a political animal. Engineers often like to think they are above the fray when it comes to organizational politics, but most organizational theorists believe politics is a fundamental dynamic in any group. This paper examines the various ways that people use power within organizations to negotiate the political interactions in the work place.

Feb 27, 2013

By S. M. Pickering

Banks frequently manage large privately owned mineral land trust accounts for estate heirs. The bank has a fiduciary obligation to follow the “Prudent Man Rule”, which requires that trust properties be managed at least as well as a prudent and knowledgeable owner could. However, banks may not have internal staff proficient at mineral property values, lease contracts, royalties, mining practices, etc. This is an opportunity for experienced geologic consultants and certified minerals appraisers to provide needed help. Items valuable to Trust managers may include: 1. Marketing privately owned mineral trust lands to mining or oil & gas firms, assuring competitive offering prices and terms; 2. Negotiating favorable new mineral lease and purchase-option contracts; 3. Monitoring progress of mining, royalty payments, land reclamation, and environmental clean-up work; 4. Balancing future mining income with later industrial, commercial or housing development, timber harvest, etc.; 5. Assuring that Depletion Allowance tax advantage is taken for actual mine royalty payments, but not for annual non-mining lease (rental) income; 6. Appraising in-ground mineral value for bank audits, estate tax valuations, and equitable property division between heirs; and 7. Serving as expert witness, representing the legal interests of the bank, trusts, and the mineral heirs in litigation. Banks do welcome reliable advice which assists them in achieving the “Prudent Man Rule” and improving mineral income to their land Trust accounts.

Jan 1, 2002

By C. Heath

US coal consumption reached new heights in 1985, but production was constrained by excess consumer inventories. Domestic consumption of coal reached a record 742 Mt (818 million st) during the year. This is a 3.4% gain over the previous consumption high 718 Mt (791 million st) in 1984. An additional 84 Mt (92.7 million st) of US coal were shipped abroad in 1985, up 13.7% from exports a year earlier. Coal production in 1985 totaled 804 Mt (886 million st), 1.1% below the record 813 Mt (896 million st) produced in 1984. The slight decline in coal output is attributed primarily to a 13% drawdown of large consumer stockpiles built up in 1984 in anticipation of a miners strike that never occurred. Coal demand, and hence production, were also restrained by slower economic growth in 1985 and additional gains in nuclear generation of electricity. Domestic market requirements for coal in 1985 were mixed. Electric utility consumption rose 4.4%; coke plants consumed 6.7% less coal; coal requirements in the other industrial sector expanded by 2.1% and consumption in the residential and commercial sector fell 14.8%. The 2.2% increase in electric power generation in 1985 resulted in a 4.4% rise in utility coal consumption, totaling 630 Mt (694 million st) for the year. Twenty-nine of 45 states where coal-fired electric power plants were operating shared in the 26.7 Mt (29.5 million st) increase in 1985. Coal receipts at utilities fell by 16 Mt (18 million st) as these facilities worked off 21 Mt (23.4 million st) from stockpiles during the year. Electricity generation at coal-fired power plants similarly climbed 4.4% to 1.4 trillion kWh in 1985. This gave coal a 56.8% share of electricity generated from all energy sources compared with 55.5% in 1984. The average price of coal delivered to these facilities remained essentially unchanged during the year. It declined on 1.5% from $38.26/t ($34.71 per st) during the fourth quarter of 1984 to $37.70/t ($34.20 per st) in the fourth quarter of 1985. Coal consumption at coke plants continue to reflect a depressed steel industry. After rebounding 18.9% in 1984 for the first time in five years, coal consumption at coke plants again declined 6.7% to 37 Mt (41.1 million st) in 1985. Coke consumption 26.5 Mt (29.3 million st) exceeded production, 26 Mt (28.7 million st), in 1985. This resulted in a 1-Mt (1.2-million st) decline in coke stocks at producer and distributor levels during the year. The average price of coal delivered to coke plants decreased 7.6% from $64.30/t ($58.34 per st) during the final quarter of 1984 to $59.42/t (53.91 per st) in the last quarter of 1985. Coal consumption in other industries, including all manufacturing and industrial consumers except coke plants, totaled 68.3 Mt (75.3 million st) in 1985. This was the highest level attained in more than a decade. But the lower percentage rise last year (2.1% compared to 11.8% in 1984) reflected slower growth in the nation's economy in 1985. The average price of coal delivered to industrial firms declined 4.5% from $42.32/t ($38.39 per st) in the fourth quarter of 1984 to $40.39/t ($36.65 per st) in the last quarter of 1985. Coal-producing states in Appalachia mined 9.8 Mt (10.8 million st) tons less in 1985 than in 1984 for a 2.4% loss. The largest contributors to the region's production decrease to 393 Mt (433 million st) were Pennsylvania, down 14.7% to 60 Mt (66 million st); Ohio, down 8.3% to 32.6 Mt (36 million st); and West Virginia, down 2.9% to 115 Mt (127 million st). Conversely, eastern Kentucky production was up 4.8% to 111 Mt (122.8 million st) in 1985, while production in Tennessee climbed 9.7% to 40 Mt (44 million st). No coal was mined in Georgia last year. Coal production in the interior region in 1985 declined 3.9% to 173 Mt (190.4 million st). Substantial production losses occurred in Indiana, down 8% to 31 Mt (34.5 million st); and in western Kentucky, down 7.9% to 36 Mt (40 million st). Coal production in Texas rose 5.7% to 39 Mt (43.5 million st) in 1985. Louisiana began mining lignite 140 kt (151,000 st) during the year. Production in the western region increased 3.4% to 238 Mt (262.5 million st) in 1985. Wyoming, up 5.3% to 125 Mt (140 million st); and North Dakota, up 16.5% to 23.5 Mt (26 million st) contributing the largest amounts. Production gains were also shown in Washington, Utah and, notably, in Alaska where coal output climbed 72.9% to 1.3 Mt (1.5 million st) in 1985. Most of the additional coal produced in Alaska last year was shipped abroad. Coal stocks held by consumers totaled 154 Mt (170 million st) at the end of the year. This was 27 Mt (30 million st), or 13.7% below the inventory level at the end of 1984. Stocks held by producers and distributors declined by 868 kt (957,000 st), or 2.8% in 1985 to 30 Mt (33 million st). A drawdown in stockpiles occurred in each consumer sector during 1985. Stocks held by electric utilities totaled 142 Mt (156 million st) at the year's end, 13% lower than stock levels at the end of 1984.

Jan 5, 1986

By Bob Rautenberg, Luminita Calin

The Tunnel and Reservoir Plan (TARP), commonly known as the Deep Tunnel Project, was developed by the Metropolitan Water Reclamation District of Greater Chicago as a two-phase solution to the problem of waterway pollution and basement flooding due to sewer system backups created by the combined sewer overflows. With only one contract left before completion of the Phase I tunnels—the 12.4 km(7.7 mi.) long Little Calumet leg—the pollution control phase of the 175.7 km(109.2 mi.) long system will be 93% complete, once the Torrence Avenue tunnel project comes to an end. This paper describes the Torrence Avenue tunnel project, currently under construction by the joint venture of Kenny (Sponsor) / Kiewit / Shea. Mining of the10.4 km (34,151 feet) long and 8.3 m (27'-4") diameter mainline tunnel was completed in a record thirty-one-weeks period and the concrete lining is nearing completion. Details on the complete muck handling system, numerous mining and concrete lining records will be given.

Jan 1, 2001

By O. Ofor

Coal fines of less than 0.5 mm particle size, discarded as too fine for gravity separation, were subjected to flotation tests at varying pH and temperatures using modified dosages of kerosene as oil phase and methylisobutylketone (MIBK) as frother. Optimal coal recovery of over 74% was obtained using 200 kg kerosene and 4 kg MIBK per ton of coal fines at a pH of 9.7 and an ambient temperature of 26° C. The coal concentrate obtained under these optimal recovery conditions assayed 9.10% ash, 0.35% sulfur and 0.011% phosphorus, representing reductions in the ash, sulfur and phosphorus contents of approximately 75%, 43% and 8.3%, respectively. Its gross calorific value was 32.9 MJ/kg, its percentage of volatile matter measured 30.6 and the fixed carbon content was 66.3% (d.a.f). Caking tests showed the optimal concentrate has a standard welling number of 1 and is a Gray-King coke type C. These results show that the optimal flotation product could be utilized for such industrial purposes as steam raising or for processing in gasworks, but it would be unsuitable for metallurgical coke production.

Jan 1, 1993

By M. O?Driscoll

The tide has turned. Developments in China that have continued to unfold over the last four years or so have now reached a point where the supply market dynamics of certain industrial minerals have changed significantly. No more is this sea change better exemplified than by the supply market for magnesite, and in particular, its processed derivative grades of dead burned magnesia (DBM), caustic calcined magnesia (CCM), and fused magnesia (FM). But what has compounded the barrage of influencing factors impacting this sector, which include the widespread effects of energy and freight cost increases, has been rising demand from certain end use markets. Clearly, the magnesia market is experiencing bittersweet conditions. But those western producers which have monitored and responded to this market transformation, stand to taste success in the near and medium future. REVOLUTION IN WORLD SUPPLY STATUS In essence, while China, as host to a wealth of magnesite resources in Liaoning province, remains a huge producer of magnesia, its supply dominance on the global magnesia market has been considerably weakened. In future, it will mainly aim to supply domestic, and to some extent east Asian markets. Magnesia consumers outside China are now scrabbling for alternative, ?western? sources of supply. At the same time, magnesia producers outside China that weathered the storm of low cost Chinese DBM and FM imports flooding their regional markets for the last 20 years (and many did not), are busy investing in production capacity increases to meet not just demand from falling Chinese supply, but also demand from end use markets which is picking up. And it is not just a matter of expanding capacity of existing magnesia product lines. In the face of plentiful lower cost DBM and FM substitutes from China over the last couple of decades, many western magnesia producers started to switch their focus to the non-refractory markets (eg. environmental, specialities) which promised lucrative opportunities (and still do) and crucially, a lessening of sales revenue dependence on the DBM refractories market. Now we have the likes of Baymag (Canada), Bommag (Serbia/Turkey), and Kumas (Turkey) not only expanding capacities but seriously considering diversifying into DBM and FM production. Perhaps DSP (Israel), having ceased its famous high purity DBM activity as recently as 2005, might even reconsider a return to the ?other side?. But it?s not all DBM and FM. The CCM and specialities markets are also demanding a response, and so Baymag, DSP, Martin Marietta (USA), Premier Chemicals (USA), Qmag (Australia), MGR (Spain), and Magnifin (Austria) are also stepping up to the market on the non-refractory side. From most accounts, the situation with regard to Chinese supply has been described as one of turmoil, with prices rising, leading to improving opportunities for western producers. The majors are conducting huge expansion programmes, such as Qmag, Magnezit (Russia), and the new look Magnesita (Brazil). Even smaller players such as Causmag (Australia) and Dalmia (India) are looking to increase production. In short, the western magnesia supply sector is witnessing a landmark event in capacity investment and market share penetration as China?s previously dominant role begins to weaken (for a review of western capacity expansions see Industrial Minerals, September 2008, p.28). MERGER & ACQUISITION ACTIVITY Another response of course has been a raft of mergers and acquisitions in order to secure resources and supply outside China. These have included private equity groups taking over Magnesita and Qmag; Imerys entering the FM business through UCM; Peñoles further consolidating the electrical grade FM market by acquiring Minco; Martin Marietta acquiring Morton Salt?s Specialty Magnesia Group; Bomex entering the market through Calmag (now Bommag); LWB acquiring Magnesita; and Magnezit?s pursuit of Slovakian magnesia, with Slovmag aboard while currently wooing SMZ. Interestingly, RHI has gone ?the other way?, and has invested in a state of the art joint venture operation at Dashiqiao, Liaoning, with which it aims to secure high quality feedstock for its Chinese refractory plants. Tata Refractories Ltd has announced intentions to follow suit, and other majors, such as Qmag are known to be interested in seeking options. Naturally, there is now renewed interest from several parties in the idled 50,000 tpa DBM/10,000 CCM Jormag facility, Jordan, and the commercially undeveloped Zhargat project, Saudi Arabia. Elsewhere, there will no doubt be suitors for stakes in SMZ, in Slovakia, and Magnohrom, in Serbia, whose respective ownerships are on the block. THE ?CHINA FACTOR? The ?China factor? has been key to magnesia?s market change, and has significantly influenced prices and availability of material to global markets. Resources & production China hosts the largest share of the world?s magnesite deposits, accounting for 26% or 3,319m. tonnes of predominantly sparry magnesite (followed by North Korea, 24%, and Russia, 22%; Wilson 2008). China accounts for 44% of total world magnesite mined (19m. tonnes in 2007) and 50% of the total world magnesia produced (8.2m. tonnes CCM, DBM, FM; Wilson 2008). Russia follows China at 13% of magnesia supply, illustrating China?s dominance of magnesia production. Apart from one producer in Shandong province, central eastern China, the country?s magnesite resources and production are concentrated around the cities of Haicheng and Dashiqiao in Liaoning province, north-east China. Although there are also producers in the Xiuyan district of south-east Liaoning, the Haicheng-Dashiqiao Magnesite Belt hosts the majority of producers. In total these may number 200-300 of large,

Jan 1, 2009