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By L. Adler

Longwall caving, one of the most economical and attractive mining methods, is yet one of the most difficult and hazardous.1 This dualism is inherent in a method which manipulates the mine supports themselves to aid in excavation. The difficulty is further compounded by the lack of an analytical method to predict and control results. This paper is intended to meet this need by providing a first approximation to the mechanics involved. The analysis will be limited to materials which are linear-elastic, homogeneous and isotropic. The rock structure is assumed to consist of beds of uniform thickness with no interbed bonding.2 Consequently, the mine roof can be likened to a beam, in which the action characteristic of longwall caving is the controlled deflection of the barrier supports. This deflection causes load to be intentionally transferred from these barrier props to the working face.3 Two of the requirements of this method, shared in common with other mining methods, are the provision of (1) adequate and (2) safe working space. The third requirement is the one characteristic of longwall caving and is somewhat in conflict with the second; (3) the development of near-failure static loads at the face. Requirement (1) is handled by spacing the barrier props sufficiently far from the working face for efficient operation. Requirement (2) limits the static stresses in the structure to predetermined allowable values. This means that it is not desirable to induce a maximum load on the working face as requirement (3) may imply. Such a condition could produce collapse in the whole structure. It is the purpose of the undercut to limit the depth, and thereby control the failure of the face. Therefore, requirement (3) really means the development of an optimum, not maximum, load which, in conjunction with undercutting, produces failure at the working face, with minimum powder consumption. Stress analysis requires an exact delineation of the structure and loads. The structure will be defined as the immediate roof and its supports. Since the roof is severed at the caving line, the supports reduce to the barrier props and the working face, as shown in Fig. 1. The mechanics of failure within the working face itself are complex and beyond the scope of this study, since the face represents a typical mine invert structure.4 However, this lack can be made good by the judicious collection of field data. The primary load on the structure is its own weight or body load which can be considered uniformly distributed over its upper surface. Additional loading occurs due to interference of overbeds with the structure. Wherever this occurs, the effect can be approximated by a load uniformly distributed on the upper surface of the structure.5 When this interference is intermittent, as with a much thicker overbed, the elastic curve for the overbed is superimposed on that for the structure and the extent of interference noted, as Fig. 2 shows. However, for simplicity, this study will ignore such intermittent loads without impairing the generality of approach. Consequently, the free-body diagram is that of a uniformly loaded cantilever beam with an inter-mediate support, as shown in Fig. 3. For convenience of analysis, the diagram will be divided just to the

Jan 1, 1961

By W. Greg Maybee

Separations, which form along stratigraphic boundaries in the roofs of potash mines, pose a serious safety concern. If these separations go undetected they can lead to falls of ground. The current method of identifying the location and extent of these separations is through manual scaling (sounding) using an aluminium rod. The potash mining companies would like to have a tool, which could quickly and reliably detect these separations and distinguish between them and clay seams. This paper presents the results of field trials undertaken at various potash mines in Saskatchewan belonging to the member companies of the Saskatchewan Potash Producers Association. A ground penetrating radar instrument from RST called SUSI (stepped frequency, ultra-wideband, synthetic aperture radar instrument) was used. SUSI has the ability of working over various frequency bandwidths. Four mines were chosen for these field trials, covering the different geological characteristics encountered in the Saskatchewan potash mines: Potash Corporation of Saskatchewan?s (PCS) Allan and Lanigan Divisions, Agrium?s Vanscoy Potash Operations and IMC Potash?s K2 Mine. These field trials indicated that stepped frequency ground penetrating radar technology could be ?tuned? to identify both separations and clay stratigraphy in the softrock, potash mine environment, based on the different spectral responses of the features.

May 1, 2004

By C. L. Reichardt

Mining companies are increasingly looking to the developing world for the next generation of mining projects, often in countries that have little or no previous history of large-scale mining. One of the major challenges for such projects is hiring?and retaining?personnel that have technical skills and experience in mining-related disciplines. Staffing a mine with an expatriate workforce is neither cost-effective nor sustainable, and many countries now insist that mining companies ?transform? the profile of their workforce to more closely mirror the demographic profile of the host population. The need to nurture mining-related skills in emerging mining nations is not solely limited to the workforce: there are also pressing economic and sustainability imperatives to develop capacity within local service providers such as consultants and contractors, as well as to facilitate informed engagement between mining companies, government and civil society. However, few educational institutions in emerging mining nations currently have the ability to offer practical training in mining-related disciplines. Local employees who are sponsored by companies to develop their skills through international study maybe impeded by language and cultural barriers, and may also be taught using course content that is of limited relevance to the specific challenges of their future working environment. This paper addresses the challenge of skills development and retention in emerging mining nations and uses examples from sub-Saharan Africa and the Asia Pacific region to explore practical means of developing capacity in mining-related disciplines. It examines the need for companies to implement strategies to develop local technical capacity in countries where they envisage a long-term operational future and also highlights the need to foster partnerships between academia, developmental institutions, mining companies, governments and civil society to establish the critical mass of mining-related skills required to nurture the development of a sustainable mining industry.

Jan 1, 2009

By S. Möllerherm

"The evaluation of data and information provided by the existing traditional indicators in sustainability assessments is most important. Therefore the Institute of Mining Engineering I from the RWTH Aachen University developed indicators and an assessment system for the mineral raw materials industry on operation, company and sector level on behalf of the Federal Ministry of Economics and Labour (Bundesministerium für Wirtschaft und Arbeit, BMWA) and the Federal Institute for Geosciences and Natural Resources (Bundesanstalt für Geowissenschaften und Rohstoffe, BGR). In the course of the development of indicators for the raw materials industry quality indicators on different levels of the sustainability assessment procedure have been identified and developed. The following paper describes some of the results focussing on the development and integration of quality indicators into sustainability assessment systems."

Jan 1, 2005

By A. M. Hearn, J. G. Roos

Energy consumption, being a large proportion of the input of the ferroalloy production process, can be measured in terms of the efficiency with which the energy is utilized and the effectiveness with which it is used. The efficiency of the usage of energy revolves around the specific consumption of the energy for the production of the alloy, which encompasses the thermodynamic aspects of the process and is more of a metallurgical function that will not be addressed further in this paper. The effectiveness with which the energy is utilized is determined by the optimisation of the electricity supply from the utility (in this case Eskom). The South African electricity supply industry is on the brink of considerable restructuring, implying changes in ownership, structure and regulation. In other countries, however, restructuring has often seen higher prices. Owing to the diversity of growth prospects in South African markets, Eskom is turning to new market management and generation strategies. In future, Eskom will develop pricing strategies to increase demand from attractive customer segments such as paper & pulp, iron & steel, aluminium, and other metallurgical industries. There will be a broader spectrum of product offerings, including dynamic pricing options and demand-side management incentives. In a future electricity market that will become more dynamic and demanding, it will become increasingly important for electricity consumers to optimise their electricity supply. There are many facets in optimising the electricity supply, which include optimal utilisation of the tariff, integrating energy cost management into the production planning process, implementation of demand-side management actions, modelling, scenario planning (.what-ifs?.), optimisation, maintenance scheduling coordinated with the tariff periods, etc. This paper gives consideration to the status of the development of technology at the manganese alloy works of Samancor at Meyerton, South Africa in order to increase the effectiveness with which energy is utilized.

Jan 1, 2004

By James Westfield

This report covers the calendar year 1954 and has been prepared and submitted to the Congress of the United States in accordance with the provisions of Sec. 106(a) and Sec. 2l2(c) of the Federal Coal-Mine Safety Act (66 Stat. 692; 30 U.S.C. Sec. 451-483). Background The Federal Coal-Mine Inspection program was established to carry out the provisions of Public Law 49, 77th Congress, H. R. 2082, approved May 7, 1941. This act has since been amended to be known as Title I -Advisory Powers Relating to Health and Safety Conditions in Mines, under Public Law 552, 82d Congress, approved July 16, 1952, which also includes Title II -Prevention of Major Disasters in Mines. Public Law 552 is known as the Federal Coal-Mine Safety Act.

Jan 1, 1956

By Richard E. Gray

The Office of Surface Mining Reclamation and Enforcement (OSM) is preparing an Abandoned Mined Lands Reclamation Control Technology Hand- book. (l) GAI Consultants, Inc. , recently prepared Chapter 2 on Mine Subsidence Control which contains a summary of subsidence abatement measures plus two new decision matrices for evaluating the subsidence abatement options that might be considered for a particular problem. These decision matrices are presented for information. Review of the subsidence abatement methods resulted in identification of items where research may impact the current state of technology in mine subsidence control. These research needs are presented to stimulate discussion of their importance in subsidence abatement and to encourage funding agencies, researchers, and practitioners to work on them.

Jan 1, 1982

By H. O. McLeod, J. M. Campbell

Data analysis of pentane and hexane adsorption from natural gas in a fixed bed of silica gel shows that constant length mass transfer zones form, the curvature of the adsorption isotherm controls the growth of the mass transfer zone and surface diffusion of molecules inside the silica gel particle controls the mass transfer rate. Curvature of the hexane isothem is more than the curvature of the pentane isotherm. Because of this curvature the hexane adsorption zones reached a constant length. In contrast, the pentane adsorption zones were always increasing in length during each run. A procedure was developed to obtain correct mass transfer coefficients using effluent curve slopes. These transfer roefficients increase with the amount of hydrocarbon adsorbed on the silica gel particle. The characteristic shape of the hexane effluent curves also show that molecular diffusion inside the silica gel particle controls the adsorption rate of pentane and hexane. INTRODUCTION The purpose of this study was to determine the mechanisms that control the dynamic adsorption of hydrocarbons from a natural gas onto silica gel. Before one can deal effectively with multicomponent adsorption, the transfer mechanisms by which a single hydrocarbon component is adsorbed from the gas stream must be defined. Two principal investigations of this system have been published ' and indicate that diffusion through the gas around the particle controls the adsorption rate. Some of the experimental observations in each study either do not support this transfer mechanism or are inconsistent with the mathematical model used in analysis. In this study surface diffusion of molecules inside the particle controls the mass transfer rate of pentane and hexane. This mechanism is indicated by the effluent curve shape for a constant length transfer zone and by the variation of the mass transfer coefficient with concentration of the adsorbed hydrocarbon. THEORY AND DEFINITIONS — MATHEMATICAL MODELS Mathematical solutions for the isothermal adsorption of a trace component from a carrier gas are derived from three relationships: the mass balance or continuity equation, the equilibrium relationship between the gas and solid phases, and a mass transfer rate equation. The transfer rate is proportional to the adsorbate concentration gradient within either the gas or solid phase. Mathematical solutions of these equations usually give the adsorbate concentration as a function of time and distance from the bed inlet. That part of the bed in which the adsorbate concentration changes from a maximum to a minimum value is called the transfer zone. This transfer zone is directly related to a plot of the effluent concentration vs time which has a characteristic S-shape. This general shape is determined by the continuity equation and occurs in many processes of diffusional transfer.

Jan 1, 1967

By M. Schafer

The 6-m- (20-ft-) diameter cast-in-place tunnel lining for Phase 3 of the Mill Creek Tunnel (MCT3) has been completed. This article summarizes aspects of liner design and ad-dresses the construction approach in placing the liner in areas of tunnel that experienced crown overbreak. Tunnel lining production rates, installation procedures and form buoyancies experienced during concrete placement will also be presented. The Mill Creek Phase 3 tunnel (MCT-3) is expected to be completed this year. It is one of the largest tunneling projects undertaken by the Northeast Ohio Regional Sewer District (NEORSD) to date. The tunnel horizon is situated within the Devonian Chagrin Shale rock formation at an average depth of 85 m (280 ft). The tunnel was excavated using a two-pass method. A full face, fully shielded, Robbins 7.2-m- (23.8-ft-) diameter tunnel boring machine (TBM) was used to excavate approximately 4,500 m (15,000 ft) of tunnel and facilitate installation of initial supports (first pass). The final lining (second pass) consists of 305-mm- (12-in.-) thick cast-in-place reinforced concrete and integral low flow channel. Seven shafts were constructed on the project. The excavation of the tunnel commenced at Shaft 14 and proceeded down grade to Shaft 9, the terminus shaft. Because of the presence of overbreak in the tunnel crown, measures were required to support the form and counteract the effects of buoyancy during concrete placement.

Jan 1, 2008

By R. L. Grayson, G. Mishra

Introduction Many old underground mines have been developed extensively into reserves requiring large numbers of workers to maintain and rehabilitate lengthy track haulages and/or belt conveyor systems. Often, large numbers of fans are required to maintain minimal airflows in areas where poor conditions and huge leakages prevail. Problems that beset one such coal mine and projects undertaken to restore it to potential profitability are presented. Brief history The Vesta No. 5 mine was opened in 1908. Drift development began near the Monongahela River, which was the primary avenue for shipping metallurgical coal to coke ovens in Pittsburgh. Over the ensuing 75 years, the main haulage entries were developed a distance of 16.1 km (10 miles) to the present mining area. Track haulage was used to transport coal from working sections to the river loading facility. As haulage distance and areas of high water influx increased, management decided, in 1973, to construct an underground conveyor belt system. The project spanned 36 months and culminated in a system of 22 flights, ranging from 205.7 to 1767.8 m (675 to 5800 ft) long. Six intake and eight return entries were developed as the mains were advanced. These entries provided adequate ventilating capacity over the years, but as extensive gob areas progressed and roof conditions deteriorated, the entries became inaccessible and more resistant to airflow. By 1981, five fans were being used to circulate 943.9 m3/s (555.5 cfm) of air through the mine. An average of 6440 t (7100 st) were produced from 20.8 continuous miner unit shifts and 2.7 longwall unit shifts each day in 1981. The ratio of support to production personnel was 1.94. To maintain the outby 16.1 km (10 miles) of haulage, 110 personnel were used. The average cost per ton was $43.54 ($39.58 per st), resulting in excessive bottom-line losses. The mine possessed a rather promising reserve, mostly in lease, of good quality, medium-sulfur metallurgical coal, but it also had a number of formidable operating problems. Operating problems Contributing factors toward relatively low productivity and high costs were the conditions of the track haulage, conveyor, and ventilation systems. Productivity was affected greatly by downtime associated with the conveyor system, which lacked adequate access for making splices or other repairs. Many areas within the conveyor belt entry itself required more

Jan 3, 1987

By D. Michael Holloway

The realignment of Interstate 880 replaces the double-decked (Cypress) viaduct collapsed in Oakland, California during the 1989 Loma Prieta Earthquake. The California Department of Transportation (CALTRANS) evaluated several pile foundation schemes for supporting the proposed structures. Structural support demands led to the selection of steel pipe piles (16-, 24-, and 42-inch-(406-, 610- and 1067-mm-)diameter), filled with concrete and steel reinforcement. Deep penetrations required through layers of very dense/cemented sands in some locations, caused serious drivability and pile integrity concerns. The need for large pile driving hammers and large diameter steel pipe piles pushed the engineers and prospective contractors well beyond the limits of local experience. Such questions as the feasibility of driving the pipes closed-ended through dense upper strata, and quantifying the effects of installation on the long-term capacities of the piles, led CALTRANS to develop a comprehensive pile test program to address the design and construction issues effectively. The results were furnished to prospective bidders on the production stages of the ensuing contracts.

Jan 1, 1996

By M. Dworzanowski

The beneficiation of fine iron ore will increase in importance in the future because most new iron ore resources will be in the form of lower grade ore deposits that will require liberation of iron ore minerals at finer sizes. Generally this fine iron ore will be beneficiated to produce a pelletizing concentrate with very strict chemical and physical specifications. In addition, because of the increasing demand for iron ore there are now more opportunities to produce by-product iron ore from mining operations producing other commodities. In the past the associated iron ore minerals would report to final tailings but now there is potential value to be realised from by-product revenue. These by-product iron ore opportunities are almost all centred on producing pelletizing concentrate. Currently pelletizing concentrates are produced mainly by various combinations of flotation and magnetic separation. The selection of the beneficiation route will depend on ore mineralogy and considerations around plant capacity and final concentrate quality. The main economic iron minerals are magnetic, haematite being paramagnetic and magnetite being ferromagnetic. This, therefore, means that magnetic separation can be applied, in principle, to all fine iron-ore beneficiation plants. While flotation has a considerable capacity advantage over magnetic separation, the real advantage of magnetic separation over flotation in fine iron-ore beneficiation is that treatment of -10 µm iron ore is possible-in flotation, the feed is deslimed at 10 µm and the -10 µm stream is considered to be final tailings, even though there is often a significant amount of contained iron ore. This paper describes a study around the recovery of fine magnetite in the form of a pelletizing concentrate. The study is based on an evaluation of an iron ore by-product opportunity from an iron oxide copper-gold (IOCG) deposit. Experiments were conducted to quantify the differences in magnetic separation performance with decrease in particle size treated. A mineralogical evaluation of all the test work products was undertaken to facilitate the interpretation of the test work results. These results were then used to propose an economically viable flowsheet for maximizing fine magnetite recovery using magnetic separation.

Jan 1, 2012

By J Guo, K Williams, J Y. Guo, A W. Roberts, M Jones, B Chen

Numerical simulations using the discrete element method (DEM) were carried out to investigate the flow patterns and stress field redistribution at the hopper and feeder interface. The influences of different filling heights, belt speeds and clearances between the hopper bottom and feeder surface on feeder loads were studied. Meanwhile, experiments were conducted by utilising wedged plane-flow hoppers with different configurations and horizontal feeders with various clearances. The simulation results were compared with theoretical values and experimental measurements. In terms of the cases presented in this study, simulation results reveal good agreements with experimental observations regarding the flow pattern. Being similar to the theoretical values, the simulations provide close predictions on vertical feeder loads for steady flow states, but they may show significant overestimations for initial states. Additionally, suggestions are given for relevant simulation parameters based on the comparisons shown in this investigation.CITATION:Guo, J, Roberts, A W, Williams, K, Jones, M, Chen, B and Guo, Y J, 2017. Simulation investigation of flow patterns and feeder loads at hopper/feeder interface, in Proceedings Iron Ore 2017, pp 173–182 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

Experiment of Improving the Quality and Decreasing the Impurity of Titanium Concentrate in Panzhihua Mine in China

Sep 13, 2010

By Colin Rawlings, Simon Pepper, Maria Karakitsiou, John Mathews, Peter Townsend, Russell Bowler, David Keeble, Christopher Darton, Scott Sadler

National Grid needs to maintain a connection between two existing electricity sub-stations (Beddington & Rowdown) in the Croydon (south London) area, and allow the replacement of two 275 kV cable circuits that are buried under roads. This is to be achieved using a single 400 kV cable circuit within a 10 km (6.25 mile) long, 3 m (9.8 ft) diameter high voltage cable tunnel which is being driven through water bearing Chalk, at depths ranging from 5 m (15 ft) to 80 m (262 ft), with four access shafts(12.5 m (41 ft) in diameter) ranging in depth from 10 m (31 ft) to 40 m (131 ft). The Chalk in this area acts as a source of public drinking water supply (PWS) and is protected by areas designated Groundwater Source Protection Zones. To minimise the groundwater risk the design and construction of the cable tunnel and shafts has paid particular attention to the construction materials used, including testing of these construction materials prior to use, developing construction methods (including the design of the Earth Pressure Balance TBM) and maintaining a groundwater monitoring & testing programme prior to and during construction to ensure the integrity of the Chalk aquifer is maintained as a drinking water source. This paper describes the tunnel &shaft design and construction in relation to these particular groundwater environmental issues which set new precedents for tunnel assessment, design and construction requirements in the United Kingdom.

Jan 1, 2007

In common with general experience in the iron-making industry overseas, Australia has in recent years suffered a deterioration in the physical quality of her iron ores in their suitability as a direct blast furnace feed. The increasing amounts of fines and the more friable nature of lump ore, especially in the ore from the Cockatoo Island deposits in Yampi Sound, Western Australia, have focused attention on problems of ore preparation and agglomeration, particularly sintering.Although very small pilot scale Dwight-Lloyd type sinter machines were operated at the steel-making centres at Newcastle and Port Kembla during World War II, no sizeable capacity was installed, so that ore was charged to the blast furnaces almost entirely unscreened, and the resultant flue dust was stockpiled.Towards the close of the war, the pilot plant at Newcastle was replaced by a small machine, adjacent to the flue dust stockpile, with a rated capacity of some 20 tons per hour. After approximately five months of part-time operation, this plant was closed down in January, 1945. Production was not resumed until December, 1950, when, due to a temporary ore shortage, it was decided to supplement available ore with sinter produced from the large flue dust stocks of about 300,000 tons. In spite of mechanical and process difficulties, inherent to the design of the plant, operation was continued on a two-shift basis, with several shutdowns for extensive overhaul and plant alterations, until September, 1954, when production was put on a three-shift basis. Addition of Yampi ore fines to the sinter machine burden was not commenced...

Jan 1, 1957

Many mines in Canada, the US and S. Africa are reaching the hoisting limit. Very little payload will be possible without compromising safety due the excessive weight. It has been suggested (DeLorme, 2000), that one of the most attractive concepts to enable deeper hoisting is to reduce the allowable factor of safety in the wire rope. Researchers at the Spokane Research Lab are developing new technology to improve hoisting safety and productivity by providing new monitoring and analytical tools. A Shaft Conveyance Monitoring System (SCMS) has been developed which determines hoist rope end load, true conveyance position and acceleration, and rope safety factor, as well as other hoist operating parameters. This information is transmitted to the hoist operator display 20 times per second. Recent field measurements on 45 mm(1 ¾ in.) diameter hoist rope indicate that dynamic forces during loading of a 9000 kg(10 ton) skip may exceed the safety factor of the rope. To improve on the current understanding of the mechanical behavior of hoist ropes, and to help interpret the results from field-testing of the SCMS, a new approach to computer modeling of stranded wire rope is also being developed. Particle Flow Code, PFC3D (Itasca 1995b) is used to simulate the structural behavior of wire rope and the interaction between individual strands when the rope is subjected to static and dynamic end loading. Details of the SCMS, field results from the measured rope loads, and the results of numerical modeling on the wire rope will be discussed.

May 1, 2002

By Don Kay

A two year study into the effects of coal mining induced subsidence on cliff lines was undertaken by the Department of Mineral Resources with the support of a grant under the National Energy Research, Development and Demonstration Program. A new monitoring technique, using an Electronic Distance Meter and acrylic reflectors attached to the cliffs, provided safety for the surveyors and extensive and accurate three dimensional displacement data on the movement of the cliffs as they were being undermined. The study report included many graphs showing the measured vertical and horizontal displacements, differential subsidence, tilts and strains and included analysis of these movements with various parameters, such as, seam thickness, depth of cover and distances between the reflectors, longwall face and the edge of the chain pillar. Some of these graphs are presented in this paper and could be used, with caution, to predict subsidence movements around other cliff lines, after allowing for differences in geology and mining layout. A mechanism is suggested as an explanation for the observed high horizontal movements around the cliff lines. Sixteen percent of the overall lengths of cliffs that were undermined during the monitoring study fell and the contributions of various factors that appeared to influence the cliff falls are discussed. It is concluded that no single factor dominated as the major cause of the cliff falls and, often, many factors combined to cause cliff face instability.

Jan 1, 1992

By D. B. Lovett

The work described in this report was directed toward identifying and devising methods to minimize the previously observed variability between working level hour exposures and the alpha particle track densities resulting on Track Etch films exposed to mine atmospheres containing radon and radon daughters. The disequilibrium between radon and its daughters was shown to directly affect this Track Etch film calibration factor. The wide range of disequilibrium states possible in mine situations amply explains the variability in the previous tests. A file of published mine atmosphere composition data was compiled and was used, along with atmospheric compositions derived from several theoretical models ref the atmospheric behavior, to evaluate the variability of several dosimeter configurations and concepts. A nonlinear, iterative regression analyse; was formulated that successfully predicted working levels to within 8 to 10% from only the alpha particle activities (Rn, RA, and RaC') data such as are obtainable from Track Etch films over a wide range of disequrlibrium conditions. A model expressing atmospheric concentrations as a function of radon source strength, plate out rate factor, ventilation rate and the fractional re-entry by recoil of previously platted-out daughters was derived and used in the regression program in addition to preparing a set of reference tables and graphs showing the disequilibrium behavior of the atmosphere. Other factors that can affect the Track Etch Film response writ considered and shown to he less crutial than the disequilibrium state. The results of a series of exposures of a dosimeter concept fixture in the Denver Mining Research Center radon chamber air presented and discussed.

Jan 1, 1976

By Steve Kral

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

Jan 1, 1986