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By Y. B. He

The effect of the stability and rheological properties of magnetite dense medium on the separation performance of a 6" dense medium cyclone (DMC) is studied with the use of fine density tracers. The tests in which different size fractions of magnetite are used to prepare the dense media reveal that at low medium densities (<1.5 s.g.), the best separation is achieved when using the magnetite with intermediate particle sizes (du3.2=18 11m). At medium densities above 1.5 s.g., however, it is beneficial to use coarser magnetite. With the fine magnetite dense medium, an increase in medium density results in a decrease in separation efficiency. With the coarse magnetite, an opposite trend is observed; the separation efficiency is improved with increasing medium density. An accurate cutpoint control is critical in gravity separation. The cutpoint shift for coarse feed particles is found to decrease with increasing medium stability (density). It assumes values close to zero in a highly stable fine dense medium. When the size of the treated particles is small (<0.5 mm), the cutpoint shift is mainly determined by medium rheology. With increasing medium density, a continuous increase in cutpoint shift is observed.

Jan 1, 1993

By T. Rockley, J. Brune

"The mining of tabular deposits accounts for a significant portion of modern production in both underground hard rock and especially, soft rock mining. There is a large discrepancy between the availability of tabular reserves and the amount of development of these deposits, particularly when the deposit has a dip of around 25-50 degrees. This project studied the technical and practical barriers to the mining of these deposits through modern and historical case studies. The primary technical barriers to the development of these deposits are material movement and roof support. The study of historical attempts overcome these barriers and why they failed allowed us to research the possibility of implementing modern technology on previously unsuccessful methods. By modifying some common mining methods, some of these deposits can be mined at only a marginal increase in cost and using readily available equipment. These modified mining methods could make previously underdeveloped deposits to become viable. INTRODUCTION Tabular deposits are defined as orebodies that extend at least hundreds of meters along two dimensions, and a substantially smaller amount along another [1]. Moderately bedded tabular deposits are mined less often than their more horizontal counterparts due to the technical issues they present. These issues often cause lower productivity, higher cost, and more frequent accidents. Moderate dip is a less well defined term; but in this case, it will refer to any deposit which has a dip of at least 20°. This paper will focus on deposits that dip around 25°-50° and are deep enough to require underground excavation methods. These deposits are too steep for most conventional methods yet not steep enough for gravity fed methods to work efficiently. In some cases, this dip range is also referred to as intermediate or steeply dipping. The types of deposits most likely to fall into this category are sedimentary bedded deposits such as coal, trona, evaporates, placers, and other alluvial deposits. Some other types of deposits can fall into this category as well. These include some of the metal reefs such as the Bushveld Complex in South Africa, which was deposited by lava flows, but is tabular. Some areas have dips that fall into the moderately inclined category. There are also some metamorphic deposits such as slate or marble that can have dips of more than 20°. The dip angle of these deposits can cause several challenges. Ore movement becomes more difficult as the exceeds the limits of conventional conveyors, rubber-tired, or tracked vehicles. At the same time the dip is below the angle of repose of the material. This prevents gravity assisted haulage, as the ore and waste will not run downhill by itself. Another common problem in moderately inclined underground mines is roof support. The dip angle can increase the risk of pillar and support failure. This is due to slippage between rock layers, non-perpendicular support of the vertical stresses, and slippage of standing supports. The inclination leads to stresses that are not usually found in typical horizontally bedded deposits. These stresses may require larger pillars that may reduce ore recovery below profitable levels."

Jan 1, 2017

The extraction and recovery of gold from copper electrorefining slimes by leaching and solvent extraction using dibutyl carbitol (DBC) has been practiced for several decades. Yet, the deportment of some common elements in this process has not been reported. The focus of this paper is to report the behavior of copper, bismuth, silver and selenium during the processing of industrial solutions by batch and continuous extraction on the laboratory scale. It was found that DBC, while an excellent extractor of gold from a highly oxidative chloride leach solution, also loads significant quantities of Cu, Bi, and Se. Silver was not present in significant quantities in the leach solution nor did it load appreciably. The deportment of gold and impurities are reported for batch and continuous operations of a two-stage extraction process using distribution ratios and separation factors.

Jan 1, 2010

By Langtry E. Lynd

Ilmenite concentrates prepared from beach and dune sands of Florida, India, Australia, and other localities deviate to varying degrees from the theoretical composition of pure ilmenite, and generally contain more Ti02 than the formula FeTiO3 would indicate, and some Fe203. This variation in composition is due to different amounts of altered ilmenite in the concentrates.(l) The alteration has been shown to take place by oxidation and leaching of the iron in ilmenite, to yield residual products consisting of amorphous or very finely crystalline titanium dioxide and ferric oxide, Other studies (2) have stressed that ilmenite may alter first to an amorphous titanium-iron oxide, or to an amorphous mixture of titanium and iron oxides, with later alteration to crystalline titanium dioxide. There has been some speculation as to whether alteration of ilmenite is usually caused by weathering or by hydrothermal processes,(3, 4, 5) Three main methods of approach were used to study the mechanism and rate of ilmenite weathering, (1) Etch tests were used to learn the relationship between crystallographic orientation and the rate of chemical attack on ilmenite. (2) Altered ilmenites in New Jersey sands were compared with ilmenite in rocks of the area from which the sands were probably derived, (3) Experiments were carried out to determine at what rate, and by what agents, originally fresh ilmenite could be altered in the laboratory under simulated weathering conditions.

Jan 1, 1959

By E. Farrokh

CSM and NTNU models are among the most commonly used models in TBM performance evaluation. Due to increasing application of TBM in different tunneling conditions, modification became necessary for these models. Sensitivity analyses on these two models indicate that both models are very sensitive to machine characteristics. Analyses performed on CSM database for cutter load and penetration rate prediction indicate while the r-square of the CSM model is reasonably high for the predicted cutterload, the r-square value for the penetration is low. In order to increase prediction capability of CSM model for penetration rate the model was reevaluated using non-dimensional analysis and the original database of Colorado school of mines. NTNU model is evaluated using Monte Carlo simulation and regression analysis. The results of analyses indicate that the majority of the variation of the penetration in NTNU model can be explained by only three parameters. This might indicate that the effects of other factors are overshadowed and it is worthy to reevaluate NTNU model using original database and more updated statistical methods to avoid overlapping of different parameters correlations.

Feb 23, 2014

By Michael Murphy, Gamal Rashed, Brent Slaker

Pillar stability continues to be a significant concern in multiple-level mining conditions, particularly for deep mines when pillars are not stacked or the thickness of interburden between mining levels is thin. The National Institute for Occupational Safety and Health (NIOSH) is currently conducting research to investigate the stability of pillars in multiple-level limestone mines. In this study, FLAC3D models were created to investigate the effect of interburden thickness, the degree of pillar offset between mining levels, and in situ stress conditions on pillar stability at various depths of cover. The FLAC3D models were validated through in situ monitoring that was conducted at a multiple-level stone mine. The critical interburden thickness required to minimize the interaction between the mining levels on top-level pillar stability was explored, where the top level mine was developed first followed by the bottom level mine. The model results showed that there is an interaction between numerous factors that control the stability of pillars in multiple- level conditions. A combination of these factors may lead to various degrees of pillar instabilities. The highest degree of local pillar instability occurred when pillar overlap ranges between 10 and 70%. On the contrary, the highest degree of stability occurs when the pillars are stacked, the underlying assumption is that the interburden between mining levels is elastic (never fails). Generally, for depths of cover investigated in this study, the stability of top-level pillars shallower than 100 m (328 ft) or with interburden thicknesses greater than 1.33 times the roof span—16 m (52.4 ft) in this study—does not appear significantly impacted by pillar offset. The results of this study improve understanding of multiple-level interactions and advances the ultimate goal of reducing the risk of pillar instability in underground stone mines.

Jul 27, 2022

By B. R. Utz

The goal of the DOE Coal Preparation Program is to provide industry with the scientific and engineering knowledge base to produce economically competitive and environmentally acceptable clean coal products for both existing and new markets. The DOE/PETC in-house program continues to conduct fundamental, exploratory, and applied research in the areas of physical, chemical, and microbial coal beneficiation to assist in meeting these goals and objectives. The Coal Preparation Division now has a new Coal Preparation Process Research Facility that allows continuous bench-scale testing of emerging coal cleaning technologies and ancillary coal preparation equipment at feed rates up to 1,250 kilograms (1.25 tons) per hour. Bench-scale and laboratory-scale research projects at PETC cover areas such as 1) the use of micronized-magnetite for fine-coal, 2) heavy-media cycloning, 3) fine coal reconstitution, 4) development and testing of coal preparation process flowsheet simulators, 5) dry coal beneficiation using electrostatic methods, 6) tracer methods to determine the efficiency of density-based separations, 7) selective oxidation of organic sulfur, and 8) microbial removal of pyrite and organic sulfur from coal. This paper will discuss several of these research areas.

Jan 1, 1993

By Maryam Motamed, Jeremy Stone, Leigh Anne Zhang

Controlling and predicting ground movements are essential to the design of shoring systems. The Courthouse Commons tunnel in San Diego, California, included a 56-foot-deep temporary shaft as a launching point for tunneling using the Sequential Excavation Method (SEM). The rectangular shaft was unique in that it was surcharged on one wall by an 11-story building and employed a hybrid support of excavation design. An array of geotechnical instrumentation was used to monitor lateral and vertical movements at the ground surface. This paper compares the measured ground movement with the predicted ground movement from various excavation stages

Dec 1, 2022

By Edwin R. (Original by) Phelps

Surface mining refers to the process of removing the material (over- burden) overlying a coal seam and exposing the coal so that it can be loaded out and conveyed by trucks or other methods to the preparation plant or other facility. Surface mining has not always been important in the coal industry. In the early 1900s, almost all of the coal mined in the United States was mined by underground methods. In 1900, about 192 Mt (212 million st) of bituminous coal were mined and less than 1% was mined by surface methods. The development and use of larger equipment has allowed surface mining to gain prominence throughout the years. Table 1 shows the total production of coal by mining method in the United States for ten-year periods since 1920 and indicates the growth of surface-mined coal production. Surface mining will undoubtedly continue to account for a large percentage of the coal production in the US for many years because: 1) The capacity of surface mining excavators has continued to increase. Today, mining companies are using shovels (see Fig. 1) which are able to move up to 137.6 m3 (180 cu yd) in each bite and draglines (see Fig. 2) which move up to 168.2 m3 (220 cu yd) in each bucketful. 2) Increasing tonnage from the thick western coal seams is being produced by surface mining methods. 3) Surface mining has normally had lower costs and a better safety record than underground mining; 4) Surface mining normally recovers a- much higher percentage of the coal reserve than can be recovered by underground mining. 5) Some coal measures can best be extracted by surface mining [ ] methods because of geologic reasons such as the nature of the roof or bottom, thickness of the seam, multiple bedding, etc.

Jan 1, 1981

By W. Dan Hausel

Archean supracrustal rocks of the South Pass greenstone belt of western Wyoming have been an important source of gold and iron ore. Actual gold production statistics are incom- plete although gold production estimates for the South Pass- Atlantic City district range from a low of 2.0 Mg (70,000 oz) (Koschmann and Bergendal, 1968) to a high of 9.8 Mg (327,000 oz) (Hausel, 1980). From 1962 to 1983 iron ore was also mined from the greenstone belt and production totaled more than 91 Mt (90 million It). The supracrustal rocks of the South Pass greenstone belt occur in a tightly folded synform bounded by Late Archean granite and granodiorite. The youngest of the Archean successions has a reported Rb-Sr isochron age of 2.8 b.y. (Stuckess, et al., 1985). Metamorphism of the supracrustals increases towards the flanks of the belt and is amphibolite-grade enclosing a small island of greenschist facies rocks. The supracrustal sequence consists of metasedimentary and metaigneous rocks that are divisible into four mappable units. The metasediments include metagraywacke, quartzite, pelitic schist, banded iron formation, metaconglomerate, and graphitic schist. Metavolcanics include metabasalt, meta-andesite, and ultramafic schist. These supracrustals have been intruded by mafic sills and dikes and tonalitic stocks and dikes. Two granite plutons and associated pegmatites intrude the supracrustals in the western portion of the belt, and the supracrustals exhibit both fault and intrusive contacts with granitic batholiths along the western and eastern margins. The northeastern flank of the Archean belt is unconformably over- lain by Paleozoic sediments, and the southern portion of the belt is onlaped by Tertiary sediments.

Jan 1, 1990

By R. K. Singhal, R. Kolada

A variety of equipment is wed to surface mine oil sands, including bucket wheel excavators/conveyors, draglines, hydraulic shovels, and off-highway trucks. This paper examines the existing mining schemes and equipment wed. Several proposals to improve mine productivity have been presented.

Jan 1, 1988

By Dale R. Ralston, Roy E. Williams, Gerry V. Winter, George L. Bloomsburg

It is imperative that the hydrogeologic frame- work and the ground water flow systems of a Potential mine area be investigated prior to initiation of mining. Such investigations are necessary so that potential mine water inflow problems can be anticipated and controlled. Obvious difficulties can arise if large inflows of ground water occur in underground workings. Costs of water removal and disposal, if not foreseen and included in economic planning, can severely limit or eliminate profit from a mining operation. Safety problems associated with large inflows are an additional potential problem. The inflow of water into a mine necessarily alters the associated ground water system. The inflow also may impact nearby surface water regimes, depending upon the interaction of the surface water and ground water systems. The inflow of water into a mine inevitably causes a decline in the ground water levels in the vicinity of the mine. This decline may be restricted to a small area or it may extend a considerable distance, depending upon the hydrogeologic properties of the associated hydrostratigraphic units. A decrease in surface flow will result if the area of ground water level decline intersects a stream or spring that is hydraulically connected to the ground water system. Mine inflow problems historically have been evaluated after-the-fact. Premining hydrologic investigations only recently have been initiated. Brown&apos;s (1977)* report on anticipated hydrologic impacts of oil shale mining in the Piceance Basin of Colorado is an example of premining hydrologic planning. Observed difficulties inherent in designing a data collection network and then utilizing the data to predict mine inflow have led us to the preparation of this manuscript. This manuscript reflects a two-phase effort. The first phase describes and develops analytical and numerical techniques for mine inflow prediction. Emphasis in this section is placed on the selection and application of data collection techniques and data analysis procedures. The second phase applies the prediction technique(s) developed during phase 1 to two existing mines. The objective of phase 1 efforts is to evaluate the hydrologic variables associated with surface water systems and ground water systems that can affect the inflow of water into an underground mine. Subsequently these variables are incorporated into predictive techniques for estimating underground mine water inflow and its effect on associated ground water and surface water systems. The specific objectives of phases 1 and 2 are to: 1) Determine the hydrologic parameters required for predicting underground mine water in- flow and the potential effects of the inflow on surface and ground water systems. The hydrologic parameters represent both premining and past initiation conditions. 2) Outline methods for obtaining the necessary input data for the predictive techniques in pre- mining and post initiation periods. 3) Present existing numerical techniques for predicting underground mine water inflow including assumptions Ad required input. 4) Evaluate existing numerical techniques previously tabulated based on their applicability to mine water inflow prediction. 5) Attempt to develop analytical techniques for predicting underground mine water inflow. 6) Develop, through modification of existing models, a general mathematical model as a numerical technique for predicting underground mine water inflow and the resultant effects on surface and ground water systems. 7) Apply the predictive techniques to two existing mines selected for this purpose. 8) Compare the predicted inflow rates to measured inflow rates at both mines. 9) Compare predicted impact on district hydrology to observed impacts where possible. 10) Evaluate the predictive technique.

Jan 1, 1986

By Robert J. Auber, Thomas R. Scotese

The West Leg Interceptor is part of a new sanitary sewer system in the southwest suburbs of Cleveland. The first two construction contracts were excavated in glacial soils varying from hard tills to pressurized silts and flowing sands. These soil and groundwater conditions were locally problematic during shaft and tunnel excavations and final lining construction. A variety of solutions were developed primarily during construction. During the WLI-1R Contract, subgrade pressures, continued ground losses, and displacements necessitated extra eductor wells and modified inverts for stabilization of shafts. At the WLI-2Contract, one shaft excavation in similar ground required only one extra well. In the WLI-1R tunnel, localized inflows of groundwater, silt, and sand through the geotextile fabric were stopped by cement grouting. In one WLI-2 connector tunnel, damage to the TBM flood doors combined with wet, flowing silt and sand led to ground losses, surface settlements, plugging, patching, and chemical grouting. The concrete lining in the main WLI-2 tunnel required remedial work to improve watertightness at joints.

Jan 1, 1999

By Steven W. DeCou, Marcus R. Jensen, Stephen Navin

The Lake Mead Intake No. 2 is a project constructed for the Southern Nevada Water Authority which includes a 12-foot diameter lake tap and intake shaft constructed in over 225 feet of water; 1650 feet of 16x14-foot horseshoe-shaped tunnel leading to a forebay that is 165 feet long, 35 feet tall, and 30 feet wide; twenty-two 4-foot diameter steel lined well shafts extending 325 feet from the ground surface to the forebay; 3500 feet of 12-foot diameter pipeline crossing a bay in Lake Mead that has water depths of up to 80 feet; and 2700 feet of 9-footdiameter steel-pipe-lined tunnel. Major site grading for a future pumping station in the area above the forebay is also included as part of the project. The project is on the schedule’s critical path for completing the first phase of a $2 billion water supply program for the Las Vegas Valley. In this paper, the owner, the designer and the construction manager present a discussion of the risk management strategies that were used to control costs, minimize project delays, and facilitate problem resolution. The discussion includes an assessment of the effectiveness of the risk management strategies in meeting these objectives. This paper will be of interest to owners and engineers planning underground projects, especially those projects that present unique risks during the construction phase.

Jan 1, 1999

By Christopher J. Hall

This paper describes the results from computer runs simulating 24 different mine ventilation configurations with the main fan situated first at the top of the upcast shaft and then at the top of the downcast shaft. Real air was used, with evaporation, condensation and heat exchange. The results showed that power requirements for the forcing fan were up to 20% less than for the exhausting fan for equal mass flow rates.

Jan 1, 1989

By K. Chief

American Indian lands contain a vast amount of renewable and non-renewable resources that have consequently been mined (Smith and Frehner). Therefore, it is understandable that tribes are concerned about environmental impacts from mining and their ability to minimize and mitigate these impacts. This has created a need to better understand mining and its environmental impacts. The University of Arizona Superfund Research Program Mining educational modules developed educational modules for tribal colleges focusing on environmental impacts of mining, remediation of mining wastes, and sociocultural impacts of mining. Educational modules are independently packaged units of study designed to enhance the learning process and can be modified and adapted to different learning scenarios and objectives. In addition to providing specialized knowledge, the modules feature hands-on activities, incorporation of technology, student involvement, discussion, and exchange of ideas. Modules will aim incorporate traditional ecological knowledge and approaches that promote effective science learning for native students. Modules are designed to augment existing associates of science programs (e.g. biology, chemistry) currently offered at tribal colleges and can be modified for use in K-12 education and for non-tribal audiences.

Feb 23, 2014

By P. T. Bissert, D. S. Yantek, L. Yan, M. D. Klein

Federal regulations require that refuge alternatives (RAs) be located within 305 m (1,000 ft) of the working face and spaced at one-hour travel distances in the outby area in underground coal mines, in the event that miners cannot escape during a disaster. The Mine Safety and Health Administration mandates that RAs provide safe shelter and livable conditions for a minimum of 96 hours while maintaining the apparent temperature below 35 °C (95 °F). The U.S. National Institute for Occupational Safety and Health used a validated thermal simulation model to examine the mechanisms of heat loss from an RA to the ambient mine and the effect of mine strata composition on the final internal dry bulb temperature (DBT) for a mobile tent-type RA. The results of these studies show that 51 percent of the heat loss from the RA to the ambient mine is due to radiation and 31 percent to conduction. Three mine width and height configurations and four mine strata compositions were examined. The final DBT inside the RA after 96 hours varied by less than 1 °C (1.8 °F) for the three mine width/height configurations and by less than 2 °C (3.6 °F) for the four mine strata compositions.

Jan 1, 2016

By Jerzy Iskra, Wlodzimierz Sikora

INTRODUCTION The effect of stress concentration in coal seams leads to a sudden release in the form of rock bursts. This effect is controlled along many lines, but the most efficient methods consist in preventing the accumulation of energy in the seam or in the roof. The over- burden weight resulting from mining is the main cause of excessive stresses in a seam. An additional weighting of roof takes place due to formation of abutment loads. The accumulation of energy in the roof takes place where thick sandstone beds occur in overburden strata. An essential problem is to watch, with appropriate measurements, the stress of coal and roof rocks, and to conclude, on this basis, the degree of rock burst hazard. The methods for determining the stresses in a coal seam are quite well developed at present. Let me mention here the seismoacoustic methods, or borehole overcoring measurement methods. On the other hand, an examination of the state of stress in the roof rocks is almost impossible at the actual stage of development of the measuring technique. Hence, the model of stresses in roof was analyzed and determined theoretically. Based on this model, a technology for roof fracturing was developed which aims at destressing rock masses in a planned way. The essentials of the fracturing method consist of a controlled breaking of sandstone roof beds in order to: - prevent the excessive weight on the pillar - prevent a spontaneous breaking of roof beds at a limiting state followed by sudden energy release. High pressure fluid infusion is used to release buildup of stresses. THEORETICAL AND RESEARCH BASES According to the tests carried out by A. Kidybinski by the method of finite elements, isobars of stresses occurring in the roof over the working face are shown in [Fig. 1]. The results indicate: - the highest values of compressive stresses occur in the roof directly over the seam, at a distance of about 5 m ahead of the working face - at a distance of about 22 m above the seam there is a line of transition of compressive stresses into tensile - within the tested roof area, the highest tensile stresses occur at a vertical distance of 35 m, and at a horizontal distance of 20 m from the line of the working face. H. Gil (1) determined the pres- sure initiating the fracture of roof rocks by the formula: [ ] On the basis of results of analysis of isobars, and of the initiation of failure stress formula (1), isobars may be designed for a given roof class. Assuming for sandstones the Poisson ratio equal 0.3, a field of failure stresses presented in [Fig. 2] is obtained. In this figure it can be seen in which areas the effects of sandstone breakage may be obtained with the operation of a determined hydraulic pressure. To use formula (I), the knowledge of Rr is still necessary. This value may be determined in two ways: - taking a sample and testing it in the laboratory, if there is access to roof rocks in the existing openings, - drilling boreholes in the roof from surface and examination of the rock mass by using hydraulic breaking, if there is no access to roof rocks.

Jan 1, 1982

By John S. Anderson

The need for fuels and minerals in this country is estimated to double, triple, or even quadruple by the end of the present century. Even assuming more recycling of scrap metals and some priority allocation of energy, as has been done, for instance in war time, the projected increase in the nation&apos;s population and ever-increasing wants of that population will require vastly more minerals than are now being produced. Since mineral ores are being mined at lower grades, and since all minerals, including fuels, are having to be mined from deeper deposits, the amount of surface land to be disturbed will, inevitably, be increased. We cannot depend on foreign sources to supply all the extra requirements, since the non-U.S. population is increasing, in most cases, faster than our own. Furthermore, starting from a lower base, their mineral needs may accelerate more rapidly than ours. Restrictions on exports may be applied in foreign countries, if it appears that remaining reserves are not sufficient to fill the national needs. In vice; of the opposition which the mineral industry is receiving, as has been well described at these sessions and elsewhere, what can we, as mineral producers, anticipate as regards our ability to continue to operate, to sway nothing of expanding production? Although not minimizing the problems involved, it seems obvious that, except under emergency conditions, the country cannot tolerate a reduction in the available

Jan 1, 1971

By Ava Walker

The first form of a surety bond was an honest handshake between two or more parties agreeing to a decision, and their personal guarantee of following through to completion. This has all changed. In 1895, the United States Treasury Department disclosed that $35 million worth of personal surety guarantees on file had become worthless. A law was then passed requiring all surety bonds, in favor of the United States, must be corporate surety bonds. Today, a surety bond is one of the nation&apos;s leading fi¬nancial instruments used to guarantee the completion of an obligation. One hundred-fifty years before cor¬porate surety bonds, outcrops near Richmond, VA, were being mined. These surface mines became under¬ground mines. Today, both are still being used to obtain a leading energy source, coal. Since that time, more than 5956 km2 (1.47 million acres) of coal mined lands have been reclaimed in the US (Coal News, August, 1987). More than 25,000 state and Federal mining permits cover¬ing 14,164 km2 (3.5 million acres) have been issued during the last 10 years. Coal production has exceeded 7.2 Gt (8 billion st). More than 5665 km2 (1.4 million acres) of mined land has been reclaimed by active coal mining opera¬tions and 267 km2 (66,000 acres) of abandoned mined lands have been re¬claimed by others. Reclamation bonds were freely writ¬ten in the 1970s. So why are they almost extinct today? Contract bond losses have been severe in the past several years, sureties reporting losses exceed¬ing 110%. But the same proof is not provided on coal reclamation bonds. A surety bond is generally required when one party has an agreement with another party, and that party wants a guarantee from a third party that a job will be completed according to the terms and conditions of a written contract. In the case of a reclamation bond, the surety company (surety) is the financial party. It extends the credit and a guarantee to the obligee (the State, Commonwealth, or Office of Surface Mining) that the principal (the coal operator/company) will complete the terms and conditions of the contract (the rules and regulations governing mining and reclamation). The Surety Association of America defines a surety bond as an agreement providing for monetary compensation should there be a failure to perform specified acts within a stated period. Webster&apos;s Dictionary defines surety in the following ways: "l: the state of being sure; 2a: a pledge or other formal engagement given for the fulfillment of an undertaking and; 3b: one who has become legally liable for the debt, de¬fault, or failure in duty of another." Banks never make accommodation loans. Either the loan is good or no loan is made. Surety companies feel the same way about surety bonds. In fact, the average person does not realize the dangers of becoming surety for another. How does a surety determine if a company is worthy of receiving surety credit? How is a coal account under¬written today for an obligation that may not be released for many years? When a surety company executes a reclama¬tion bond, it financially puts its name behind the coal company and its guaran¬tee that should the coal miner default on the obligation, the surety will fulfill the contract. How is the surety to determine if a coal company may still be in business five, 10, 20, or 40 years from today?

Jan 1, 1989