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By John E. Pahlman

The U.S. Bureau of Mines has continued its investigation of chemical additive drilling fluids that produce a zero surface charge (ZSC) on a rock to better define the boundary conditions of the phenomenon. Laboratory drilling tests were performed on Minnesota taconite, Tennessee marble, and Sioux Quartzite using diamond-impregnated coring bits or tungsten carbide spade bits. Drilling fluids were made from chemical additives such as inorganic salts, cationic surfactants, cationic polymers, acids, or nonionic polymers in either distilled, deionized water (DDIW), mine pond water, mine well water, or tap water. These additives were tested below, at, and above their respective ZSC concentrations. Penetration and bit life improvements obtained with ZSC concentration solutions ranged from 88 and 56 pct, respectively, to over 650 pct and over 400 pct, respectively, for the additives tested. Polyethylene oxide (PEO) was found to be the best additive for ZSC-controlled drilling because a continuous range of PEO solution concentrations produced the enhanced ZSC-controlled drilling performance.

Jan 1, 1989

By F. E. Jaumot, R. L. Smith

Self-diffusion in zinc at temperatures below 200°C has been studied using both single crystal and polycrystal samples. Anomalous results were obtained for single crystal samples, the data indicating that in some cases grain boundary diffusion predominated. These anomalous results are presumed to be due to low angle lineage boundaries in the single crystals. When volume diffusion occurred in either single or polycrystal samples, the values for the diffusion coefficient were as much as several orders of magnitude larger than would be expected from high temperature data. ONSIDERABLE work has been done on self-^-*diffusion at temperatures in the neighborhood of two thirds of the melting temperature (in OK) and higher, but very little has been done at lower temperatures. This is particularly true of self-diffusion in single crystals. This paper reports work on self-diffusion in zinc at temperatures below 200 °C where both polycrystalline and single crystal samples have been used. The measurements were made using both the sectioning and absorption techniques. The experiments on diffusion at low temperatures were initiated primarily for three reasons: to obtain data from single crystal diffusion covering a wide range of temperatures, to obtain values of the activation energy for grain boundary diffusion, and to obtain, if possible, a lower limit to the temperatures at which the absorption technique may be used. It is possible to determine whether volume or grain boundary diffusion predominates at low temperatures by analyzing the manner in which the concentration of the diffusing atoms varies with the depth of penetration. The analysis is possible only for the sectioning technique. For volume diffusion and for the boundary conditions of the present experiment, the curve of the logarithm of the concentration, C, vs the square of the penetration depth, x, is a straight line with the slope proportional to — 1/D. If grain boundary diffusion predominates, Fisher' has shown that a curve of In C vs the first power of the penetration depth should be a straight line. This linear dependence of concentration on depth has been observed experimentally by several investigators. (See, for example, refs. 3 and 4.) Following Fisher's analysis, the grain boundary diffusion coefficient can be written as where 8 is the grain boundary width, D, is the volume diffusion coefficient at the temperature involved, t is the time of diffusion, C is the concentration of diffusing material, and x is the depth of penetration. A more general analysis employing the same model as Fisher's but with fewer assumptions has been given by Whipple.' In contrast to Fisher's analysis the more general analysis of Whipple does not always yield a straight line relation between In C and x. Recently Turnbull and Hoffman have discussed both analyses and have applied the Fisher-Whipple model to a more refined dislocation model of the grain boundary. They have also discussed the possibility of a large effect of grain boundary direction on diffusion. In the case of the absorption technique, for which results are also given, one simply gets a value for the diffusion coefficient with no indication of the predominating mechanism. Experimental Techniques Single crystals of 99.99+ pct Zn were grown using a modified Bridgman method. Polycrystal samples were prepared in three grain sizes (small, about 4 mm2; medium, about 9 mm'; and large, about 25 mmz) by quenching, air cooling, and furnace cooling. The grains of the polycrystalline samples tended to be columnar, with some preferred texture such that the c-axis was inclined at about 20" to 25" from the normal to the diffusion face, particularly in the medium and large grain size samples. The samples were cut from the rod, polished, and heavily etched, and faces cut accurately parallel using a jeweler's lathe. They were again etched to remove the lathe smear and annealed for 3 hr at 250" to 300°C. After annealing, they were etched, examined, and the orientation determined by Laue back reflection photographs. They were then electroplated with Zn. The plated surfaces were examined for uniformity; nonuniform coatings were removed by etching and the samples replated without additional preparation. For the diffusion anneals, the samples were placed in pairs, with active faces together, in evacuated Pyrex tubes. Constant temperature baths were used, and the variation in temperature did not exceed ±l°C, Diffusion runs were made at l00°,

Jan 1, 1957

Over the last five years Du Pont (Australia) Ltd has developed a commercial range of new generation emulsion based explosives concurrently with the development of new explosives-placement systems. The paper outlines Du Pont's emulsion technology and history of product development from the initial emulsions (Tovex E & EL) to emulsion/ANFO blends (Tovex BE) through to the most recent development of Du Pont's SOL emulsion component. The paper also outlines the development of materials handling systems on site to load waterproof bulk explosives from the original pumper trucks through to the multipurpose agitator bowl blending and pumping units at the heart of Du Pont's SOL emulsion system currently available within Australia. The last section deals with some of the more important features of enhanced agitator bowl truck designs and outlines examples of the complete SOL emulsion system and methods of operations currently practiced at specific mines within the Bowen Basin coalfields.

Jan 1, 1986

By H. W. St. Clair

In about 1930, Degussa applied for a patent on a process for the of oxides, carbides, sulfides, and other nonmetallic impurities by filtration in the molter state. The filtering media listed were wire screen, coke, and ceramic materials, and quartz. It was also suggested that filtration might be combined with chemical reaction between the metal and the filter medium or that might be added to the system. No patent was granted on the general scheme, but several years later a patent was granted on a continuous process purification of crude light metals, especially or alkali earth and their alloys. The melt was stirred at 1 temperature at which the impurities (such as oxides and salts) remained solid and the metal was drawn through a filter tube. The impurities collected under the filter and were removed by a screw conveyor. Crude sodium was purified by this process in Degussa's Knapsack plant. During the last war, when the refining of scrap became a very urgent Problem in Germany, experimental investigations were extended to separation of other metals and metallic compounds by filtration. Preliminary experiments seemed to confirm the opinion of Dr. L. Weiss that the principles of wet chemical filtration might be applied to a great extent in the purification of metal and alloys.

Jan 1, 1949

By Thomas Fraser

"El objetivo del presente texto es describir las características del lavado del carbón bruto producido actualmente en La Galgada, Ancash. Para ello, se revisa el registro y la comparación comparación de datos de prueba realizados entre 1945-1955. Desafortunadamente no se tuvo información de los lugares de trabajo para la selección de muestras, por lo cual no se las considera representativas de la producción obtenida en una operación a gran escala. Empero, los datos de las muestras en conjunto permiten una mayor índice de representación, y muestran la fluctuación en consumo que una nueva planta tendría que ser capazde manejar. Asimismo, se sugiere que dentro del diseño de plantas definitivas, el diagrama de tratamiento, indica un plan que pudiera ser adoptado ventajosamente, si surge el caso de que el carbón de Ancos y La Galgada sea empleado principalmente para la producción de combustible para altos hornos. En este caso, se supone que la planta lavadora estaría situada en Chimbote, como parte integrante del horno de coke y planta de sub-producción, y que el lavado daría un producto uniforme de no más de 10% de contenido de cenizas. Esto es solo una solución posible, que ofrece grandes posibilidades en la actualidad, en vista de los planes corrientes para una expansión eventual de la industria del acero, basada en el funcionamiento convencional de altos hornos que utilizan un combustible fabricado a base de antracita."

Jul 20, 1956

By Raymond W. Hiteshue, Sam Friedman, Martin D. Schlesinger

The Bureau of Mines in cooperation with the El Paso Natural Gas Co. investigated the effect of high temperature and pressure at short residence times on the hydrogenation of a New Mexico coal to gaseous and liquid hydrocarbons . The study was made in a bench - scale semicontinuous unit at pressures of 500 to 6,000 psig , 480 ° to 1,000 ° C , and residence times of less than 1 minute to 15 minutes . Ammonium heptamolybdate was impregnated on the coal to furnish 1 percent molybdenum based on maf coal . Coal could be rapidly hydrogenated at elevated temperatures and pressures to yield large quantities of gaseous hydrocarbons and small quantities of lowboiling oils , high in single - ring aromatics . At 800 ° C and 6,000 psig and a residence time of 1 minute , the yield of hydrocarbon gas was 43 percent and of liquid hydrocarbons 9 percent , based on maf coal . With a 15 - minute residence time , the yield of gaseous hydrocarbons increased to 68 percent with a decrease in yield of oil to 6 percent . At higher hydrogen velocities , the yields of oil were much greater but contained large quantities of asphaltene . Low concentrations of molybdenum (0.01 and 0.1 percent ) or a high concentration of iron ( 1 percent ) were ineffective at 800 ° C , 6,000 psig , and short residence time .

Jan 1, 1964

By N. V. Hansell

The last few years have shown an increasing interest in the subject of beneficiating iron-ores in all iron-producing countries. In the United States, this movement has been slower than in certain parts of Europe, for the obvious reason that the abundance and relative cheapness of the Lake Superior irou-ores has hindered the development of enterprises for the preparation of low-grade ores. Gradually, however, conditions have changed. The world's consumption of iron is increasing enormously. Being in 1900 about 40,000,000 tons, in 1910 it was already 60,000,000; and there is no reason to doubt that for the near future the increase in iron-cousumption mill continue at the same rapid rate, especially with the development of China, certain parts of Africa, and other regions which have hardly been touched as yet by modern industrialism. It is, therefore, not surprising that apprehension is felt that the known available iron-ore resources of the world are gradually being depleted. Signs of this feeling are the recent iuvestigation, under the direction of the U. S. Geological Survey, of the iron-ore resources of the United States, and the estimate presented to the last International Geological Congress, at Stockholm, Sweden, of the iron-ore resources of the world. These investigations have emphasized the fact that the known high-grade ore-deposits are limited in extent, and will, at a not distant future, be exhausted, compelling the iron industry to depend for raw material on the enormous deposits of low-gratle ores which are distributed over almost all the world. The discovery of new deposits of high-grade ore, in countries not yet thoroughly explored, will not materially change this prospect. Of course, the part which such new deposits will play in the future cannot be forecast. The difficulty and cost of transportation will probably exclude many of them from use at the present centers of the iron industry.

Jan 1, 1913

Four actual coal mine waters were used in various phases of the research program. All were from the Sewickley Creek area In Westmoreland County, Pennsylvania. The BCR designations, site locations, and nature of the mine water samples are described briefly in the following paragraphs.

Jan 1, 1971

By R. R. Sayers

"An important, function of the U.S. Bureau of Mines is to instruct miners in first aid, and as a means of promoting interest in it first-aid contests are held under the auspices of the Bureau, usually in coop; ration with other interested organizations, especially the American Red Cross, the National Safety Council and various operators' and Miners' associations. It was early found that the method of judging first-aid meets is one of the most vital factors in determining the degree of success of the meet.It may be safely stated that there is no method for the judging of first-aid contests that has proved ideal. A method that would give the most uniform judging would necessitate the rating of each team by the same judge or committee of judges and, in order that a judge may rate a team satisfactorily, he should see that team perform several events and average the ratings. Such a procedure is not practicable where there are many terms entered in the contest, as it would prolong the meet indefinitely. To overcome this objection the method has been tried of assigning separate judges to each team but this brings in a new factor the individuality of the various judges, some of whom rate closely, others loosely. The next development was to average the judging by having the judges rate different teams for each event. This would seem to solve the problem out it has been found, after using the method over a wide area for a considerable period of time, that the differences in the judging are too marked to be at all satisfactory. The next development was to appoint a committee of chief judges three to five in number especially trained and experienced, to aid the individual judges in rating the teams. This method has proved satisfactory at small meets but, as committee must review the work of each judge on each event, it has not been deemed feasible for a large meet."

Nov 1, 1920

By Douglas A. Karvonen

INTRODUCTION Although the economy in the Province of Saskatchewan has historically been agriculturally oriented, a major source of wealth has been realized through natural resources such as petroleum and natural gas, coal and uranium and since the 1960's - potash. Potash or potassium chloride, in the form in which it is presently produced in Saskatchewan, is used primarily as fertilizer, a source of potassium, one of three essential elements required for healthy plant growth, with about 5% of production sold to the chemical industry for use in such products as soap and liquid detergent, glass and ceramics, textiles and some pharmaceuticals. Saskatchewan is estimated to have approximately 40% of known world potash reserves and its ten active mines account for some 25% of annual world production. POTASH CORPORATION OF SASKATCHEWAN In an effort to guarantee a fair and lasting economic benefit to the Province of Saskatchewan, the Potash Corporation of Saskatchewan (PCS) was created on February 4, 1975 through an Order-in-Council under the Crown Corporation's Act and later on April 1, 1976, the Potash Corporation Act provided for its continuation. PCS was given the mandate to acquire ownership of a significant portion of the potash mining capacity in Saskatchewan and to establish an organization capable of operating the facilities, marketing the product, and conducting all of the other activities necessary for a successful corporation competing in the world potash industry. The corporation is the largest potash producing and selling organization in the Western World - or third largest in the world. (See also Figure 1). PCS through its wholly-owned subsidiary, PCS Mining, has acquired a whole or partial interest in five geographically distinct producing properties or divisions, representing today more than 40% of Saskatchewan's potash producing capacity. The acquisition of each division was followed by a program designed to exploit and maximize the particular opportunities at each minesite for increased production. To that end, PCS Mining has taken an active lead in expanding to meet future demand and has implemented expansion programs at all properties except for its Esterhazy Division where it has a long-term processing agreement with International Minerals & Chemical Corporation (Canada) Limited. Through its wholly-owned subsidiaries, PCS Mining, PCS Sales and PCS Transport, this provincial crown corporation has the ability to operate as a producer and marketer of Saskatchewan's potash. In certain instances PCS, the parent company, assists in the financing of various projects undertaken by the subsidiaries and in other cases the subsidiary involved arranges its own financing. POTASH RESERVES As a background to the specific issue of financing, it is helpful to describe briefly the nature of the deposit which supports the industry - our collateral, if you like. The potash beds underlying Saskatchewan are sedimentary rock deposits formed by the gradual evaporation of an inland sea during the Middle Devonian period roughly 400 million years ago. Now known as the Prairie Evaporite, this formation stretches from North Dakota and Northeast Montana through Southern Saskatchewan into North-Central Alberta. These beds lie at mining depths ranging from 950 - 1000m (3,000 ft) below the surface, where conventional mining methods can be used, and to 1,650m (5,000 ft), where solution mining must be

Jan 1, 1985

By John Rushton

Surface mining, from ore extraction to processing, requires many types of equipment to obtain the final product. Mine equipment often includes shovels, drills and haul trucks. Ore processing equipment, including plants, mills and concentrators, are also part of surface mining operations. Surface mining operations emphasize production. Production is where the bills are paid and fortunes are made. However, there must be support to keep the equipment operational. To most production people, equipment maintenance is a necessary evil. Maintenance is not glamorous work. It is often neglected when praise is being passed around. It is easy to recognize higher production, greater capacities, faster cycle times or more loads hauled. But who cares if an engine is replaced in 12 hours instead of 48? The answer is, everyone should - from the hourly miner to the mine manager. Surface mining equipment needs constant maintenance work. It must be lubricated, components replaced, electrical problems repaired and other problems addressed. Repair work for any surface equipment takes time away from production. It costs money. Maintenance costs cannot be avoided. However, they can be minimized. Minewide communication should include operations cooperating with maintenance. Traditionally, operations resist surrendering equipment to maintenance if it can continue to produce. The rationale is, every load that can be hauled today is money in the bank. If the unit is taken down, the money is lost. This thinking is prevalent in many surface mining areas, including the mill. "Not on my shift," the operator thinks. "Let the next crew worry about it. The problem with this thinking is in probability and statistics. The longer equipment goes without maintenance work, the higher the probability of equipment failure. When the failure does occur, it is certain to cause the equipment to remain down longer than if the maintenance department had been allowed to take it down. Many mining operations have closed early in their lives because of poor maintenance practices. This has become the industry standard because substandard levels of performance are acceptable. Management believes it gets five to six hours of work from maintenance people during an eight-hour shift. Actually, the industry average is less than two hours of work per shift. Real productivity levels of less than one hour are not unusual. There are few exceptions. However, a daily work schedule (DWS) will increase productivity at many properties by 50% to 100%. A 200% improvement is not unusual. The DWS will work. Maintenance people are among the most intelligent and motivated people on the property. They deserve the chance to be productive. [ ] In preparing a DWS, management needs to understand two productivity principles - the productivity spread and the real maintenance workday.

Jan 1, 1997

By Charles Will Wright

DESPITE the war, the First Pan American Mining Congress, held in Santiago, Chile, Jan. 15-23, was attended by about 300 persons including the official delegates from sixteen of the American republics. The United States delegation consisted of Elmer Pehrson, of the U. S. Bureau of Mines; D. F. Hewett, of the U. S. Geological Survey; William H. Hobbs, of the Carnegie Foundation; and C. W. Wright, delegate of the Board of Economic Warfare and of the A.I.M.E. Mr. Wright was elected to head the delegation. Among the other members were Edward Steidle, of Pennsylvania State College and also an official A.I.M.E. delegate; John Huttl, of Engineering and Mining Journal; W. 0. Vanderburg, foreign mineral specialist from Lima, Peru; O. B. Hundley, of the American Cyanamid Co.; Horace Graham, of the Anglo-Chilean Nitrate Co.; and several officials and engineers from the Anaconda, Kennecott, and Bethlehem Steel companies' mines in Chile.

Jan 1, 1942

By J. M. Keane

SMEThis loaner is concerned with important criteria relative to the design of small flota¬tion concentrators. For the purpose of this discussion a small flotation concentrator is defined as a facility having a designed ore feed rate of 1,000 metric tons per day (MTPD), or less. The decision to design and construct a small flotation concentrator is the culmination of a series of logical steps relative to the ex¬ploitation of a potential ore body. The information required for a rational and timely decision regarding plant design and construction is usually contained in a feasibility report. The information required in a thorough feasibility report has been summarized (1) (2) as follows: Type of mine or plant and proposed daily, monthly, and yearly production of all intermediate and final products. Quantity of indicated ore reserves. Location of project illustrated by a map showing surroundings, trans-portation facilities, and existing utilities.

Jan 1, 1980

By Jon Kellar, William Cross, Eric Swanson, John Starkovich

Zirconium tungstate (ZrW2O8) is a unique material with a negative coefficient of thermal expansion. In order to fully utilize this material as a filler, a surface treatment needs to be developed to better improve the wetting and dispersion capabilities of the filler. This paper describes an initial study to characterize the filler as well as investigate fatty acid and silane surface treatments for eventual compounding with thermosetting matrices. It was found that ZrW20, has a point-of- zero charge between pH 2.7-3.0, and that both fatty acid and organofunctional silane treatments appear to be viable surface treatments for this unique filler.

Jan 1, 2003

By R. Floyd Farris

A THOROUGH knowledge of the behavior of cement slurries under elevated tempera-tures and pressures is necessary in order to solve properly the many problems pre-sented in deep-well cementing operations. In the earlier days of the petroleum indus-try the depths of wells were shallow as compared to those of today, and the subsurface temperatures and pressures were not of sufficient magnitude to affect seriously the problem of proper control of cement-slurry properties. Today, however, the search for new reserves has extended drilling to such depths that bottom-hole temperatures of more than 200°F. and bottom-hole pressures of 3000 to 5000 lb. are not uncommon. Moreover, there is every indication that within the next few years wells will be drilled to even greater depths and bottom-hole temperatures and pressures will be correspondingly higher than those with which we are concerned today. It has been realized for some time that the behavior of cement slurries at high temperatures and pressures might be very different from that at atmospheric tempera-ture-pressure conditions, but while the temperature effects have been investigated with a reasonable degree of thoroughness, the pressure effects have received little public attention. While the trend toward deeper drilling may make changes in cementing technique and the choice of cements imperative, it was the purpose of this investigation to consider factors having a bearing on the latter, only secondary consideration being given, for the present, to details of tech-nique and equipment for oil-field use. More specifically, the purpose of this work was to consider the effect of temperature and pressure upon the behavior of cement slurries.

Jan 1, 1940

By Ramsay WRH

The Mount Stavely Volcanic Complex compri- ses one of a number of northerly trending fault bounded greenstone occurrences in Western Vict- oria, of probable Cambrian or older age. The greenstone belt is coincident with several linear positive aeromagnetic anomalies, which outline the surface and subsurface extensions of these greenstones. Mapping at Mount Stavely has identified serpentinite, variolitic basalt, two-pyroxene and pyroxene-hornblende andesite, dacite, rhyodacite and their pyroclastic equiv- alents. Chemically and mineralogically the volcanics constitute a calc-alkaline assemblage. The mineral potential of the region has been enhanced following a discovery by Pennzoil of Australia Limited near Ararat, of sulphide min- eralisation containing approximately 1 million tonnes at 2.7 percent copper. The volcanic environment of the Mount Stavely Volcanic Complex is discussed in terms of similar environments found in Canada.

Jan 1, 1982

By Guillermo Ortíz C.

El presente trabajo señala la importancia de la simulación matemática en la investigación de operaciones como medio de solución en la minería de cielo abierto y subterráneo. En este sentido, se revisa la repercusión del sistema de simulación GASP VI, el cual propone una serie de reglas de un sector de la realidad y lo simplifica en un modelo a construir. Este lenguaje de programación reconoce las identidades y sus atributos como codificación del valor de los atributos. Asimismo, sugiere el enlace entre el modelaje y las actividades del programa, simplificando el diseño y los análisis de las actividades requeridas por el problema a resolver.

Nov 20, 1978

By W. S. Steele

Vermiculite is a nonmetallic mineral of the mica family, probably related to biotite mica. Its occurrence has been noted at numerous places in the United States and in some foreign countries, but it can be said that vermiculite is of only moderately wide distribution. A laboratory and field survey of over 60 deposits in the United States by F. 1;. Schundler & Co., of Joliet, Ill., indicates that the purest deposit represented in this survey is on the property of the Zonolite Company at Libby, Montana The Zonolite Company is commercially active and the vermiculite it produces is sold as Zonolite. Hereafter, in this report, the word "Zonolite " will be used to designate the vermiculite produced by the Zonolite Company. Values given herein to Zonolite are peculiar to the vermiculite produced from the Zonolite Company's deposits. References to " vermicullite," are to he interpreted as covering the broad field covered by the Schundler survey. Composition and Characteristics of Vermiculite Vermiculite is an aluminum-nmgnesium silicate. The following typical analysis is published by the United States Bureau of Standards: silica, 41 per cent; iron oxide, 7; aluminum oxide, 18; magnesium oxide, 21; calcium oxide, 1; alkalis (sodium and potassium), 1; moisture, 11. Vermiculite breaks down into platelike formation in crushing and grinding operations. Its cleavage is basal. Crude, screened, dry Zonolit,e weighs between 80 and 90 Ib. per cubic foot; its specific gravity is 2.8 and its specific heat is approximately 2. The fusion point of Zonolit'e is 2462" F. Crude vermiculite contains between 7 and 9 per cent of chemically combined moisture. The instantaneous introduction of crude Zonolite into an expansion furnace at a temperature of between 1800" and 2000" F. transforms the combined moisture into steam, which in an effort to liberate itself forces all explosive expansion of the platelike crude material

Jan 1, 1934

By McHaina D. M, Hardcastle S. G

A description is given of an investigation into the feasibility of using controlled recirculation of warm exhaust air into the cold intake air of underground mines during winter. Canadian mines can experience inlet air temperatures of minus 30 ¦C and less, requiring them to pre-heat their intake air. The use of controlled recirculation would reduce the inlet air quantity and thus reduce heating costs which exceed $1M on some mines.

Jan 1, 1988

By Graham J. Morgan

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

Jan 2, 1983