Search Documents

By Hendri Silaen, Ishak Degei, Nicoll Soumilena, Arwin Edijanto, Avesiena Primadiansyah

PT Freeport Indonesia’s Deep Mill Level Zone (DMLZ) is one of three operating cave mines at the Grasberg mine complex. The DMLZ is situated in the East Ertsberg Skarn System (EESS). It is set 500 m below the operating DOZ mine and located approximately 1,500 m below the surface, making it one of the world’s deepest panel caving operations. Initial undercutting of the DMLZ commenced in the second half of 2015 and has expanded to more than 120,000 m2. High pre-mining stresses and the changes associated with caving, combined with a strong and brittle rock mass, led to significant seismicity and rock bursting. Stress and seismic management are the main challenges for the operation and have evolved significantly from initial undercutting to the present. Considerable amounts of empirical data associated with ground response have been collected, evaluated and combined with historical lessons learned from the Intermediate Ore Zone (IOZ) and Deep Ore Zone (DOZ) mines, which are located within the EESS. This has provided an improved understanding of how the various geological, geotechnical and mine design criteria relate to one another. Additionally, the information has allowed for the development and implementation of improved strategies for stress and seismic management in the DMLZ. This paper describes how these learnings have driven changes in mine geometry, layout, and support systems. Through comprehensive monitoring and detailed inspections, positive changes have been seen in the ground response, leading to an increase in footprint reliability and accelerated cave growth. The paper summarizes the key learnings at the DMLZ regarding stress and seismic management as well as the positive improvements towards sustained and safe caving operations in the DMLZ.

Apr 26, 2022

By M. D. Bishop

Early solvent extraction circuits in the uranium industry utilized bona fide kerosenes as diluents for extractant chemicals. These kerosenes were used successfully in the uranium industry; however, at least one plant was destroyed by fire resulting from the use of a low flash point kerosene. Although the term "kerosene" is used throughout the solvent extraction industry, the authors have been unable to find any use of kerosene in copper solvent extraction circuits. A term that is occasionally used with reference to diluents is "metallurgical kerosene." Such a term is unrecognizable in the petroleum industry. Kerosene [or kerosine] is a flammable hydrocarbon mixture that is less volatile than gasoline. It is produced for combustion purposes and may have variable compositions of organic compounds including alkanes, alkenes, alkines, and aromatics. Diluents are constant composition hydrocarbon mixtures developed specifically for use in solvent extraction processes. These products usually have much lower vapor pressures and higher flash points than kerosene. In solvent extraction systems, they typically comprise 70 to 95 v/o percent of the circuit organic. The primary purpose of the diluent is to adjust the extractant concentration to the working range of the operation. The diluent and extractant must be completely soluble or miscible with each other. Secondary diluent effects are to promote transfer kinetics, optimize phase disengagement, and minimize both organic in aqueous and aqueous in organic entrainment.

Jan 1, 1996

By D.G. Osborne

Each month abstracts of the papers selected for the Annual Bound TRANSACTIONS Volume will appear on this page. Since the Annual Bound Volume will not be published until the spring of next year, this will give people an opportunity to order copies of the papers earlier. If you would like copies, fill out the coupon below and return it to SME-AIME. Each copy will cost

Jan 1, 1985

By W. Lorenz

The responsible treatment of natural resources, including mineral raw materials, contributes to the protection of the environment. The management of resources and the environment encompasses reduction of emission through application of environmentally friendly processes, economical use of resources, recycling and substitution, application of energy saving processes, land reclamation and recultivation, as well as a well balanced regional and land use planning. A variety of materials are needed for measures to protect the environment. Many of these materials are, or to a large percentage consist of, mineral raw materials, which become effective either directly or indirectly in their natural state or after an appropriate industrial treatment. We call them environmental minerals. Although extraction and processing of these mineral raw materials destined for use in the protection of the environment, may have a negative impact on the environment on one hand, preventive or curing measures to protect the environment on the other would not be possible without them. We have to accept certain smaller burdens of the environment, which naturally will have to be kept at the lowest possible level, in order to avoid or minimize greater damages to nature. In the broad group of industrial minerals and rocks there is a wide variety of mineral raw materials, which lend themselves for countermeasures in favor of the environment. To hamper their production and processing through excessive environmental regulations would make the protection of the very environment more difficult or even impossible.

Jan 1, 1995

By Robert S. Holmes

The U. S. Army Corps of Engineers Explosive Excavation Research Office (EERO) of Livermore, California, has been engaged in research and development of excavation techniques using both nuclear and conventional explosives since 1962. Prior to July 1971, this organization was designated the U. S. Army Corps of Engineers Nuclear Cratering Group. The EERO mission is performed as part of the joint Atomic Energy Commission -Corps of Engineers nuclear excavation research pro-gram. During the period 1962-1969, the Corps executed many cratering explosions using spherical charges of up to 85 tons of nitromethane to model nuclear excavation concepts and to develop design criteria for the nuclear cratering explosions. The experience gained in these modeling tests suggested that explosive excavation using large chemical explosive charges could be applied to excavation projects as an economical substitute for traditional excavation techniques. Consequently, the Corps' research program was broadened in 1969 to include development of chemical explosive excavation as a construction tool. The term "explosive excavation" denotes the use of large buried explosive charges to produce an excavation by fracturing the material and casting it into a desired configuration. In its simplest form, this technology involves detonation of a single explosive charge buried at the proper depth to produce a crater which is roughly hyperbolic in cross section. The types of craters produced by various depths of burial are illustrated by Figure 1. Single or Multiple rows of charges are used to excavate linear cuts required for water conveyance or navigation channels. .More complex explosive excavations include small craft harbors, railroad and highway cuts, and removal of W1denvater rock barriers to navigation. While the literature indicates widespread use of large explosions in the (1) ERRO is a field activity of the Waterway Experiment Station, Vicksburg, Mississippi

Jan 1, 1971

By Donald E. Stump

Subsidence from underground coal mining alters surface water discharge and availability. The magnitude and areal extent of these impacts are dependent on many factors, including the amount of subsidence, topography, geology, climate, surface water - ground water interactions, and fractures in the overburden. These alterations may have positive and/or negative impacts. One of the most significant surface water impacts occurred in July 1957 near West Pittston, Pennsylvania. Subsidence in the Knox Mine under the Coxton Yards of the Lehigh Valley Railroad allowed pan of the discharge in the Susquehanna River to flow into the mine and create a crater 200 feet in diameter and 300 feet deep. Fourteen railroad gondola cars fell into the hole which was eventually filled with rock, sand, and gravel. Other surface water impacts from subsidence may include the loss of water to the ground water system, the gaining of water from the ground water system, the creation of flooded subsidence troughs, the increasing of impoundment storage capacity, the relocation of water sources (springs), and the alteration of surface drainage patterns.

Jan 1, 1986

By L. J. Drew

The plate tectonic setting, regional geology, and certain aspects of the economic geology of the iron-rare-earth-nio-bium ore bodies at Bayan Obo, Inner Mongolia, China, were studied by a team of geologists from the Tianjin Geologic Research Academy and the U.s. Geological Survey between 1987 and 1989. These ore bodies were formed by hydrothermal replacement of Middle Proterozoic dolomite in an intracontinental rift setting. A variety of veins and/or dikes that have a carbonatite-like mineralogy cut the footwall clastic rocks and migmatites. A stockwork of veins occurs at several locations in the footwall. The hanging wall is a shale that has been converted to a K-metasomatite and has microcrystalline potassium feldspar as its principal constituent. This shale served as a sealing caprock that contained the chemical solutions that reacted with the dolomite and that created the enormous concentration of mineralized rock in an 18-kilometer-long syncline. The rocks that host these ore bodies and the associated mineralized areas occur today as roof pendants in granitoid rocks of Pennian age that were emplaced during a continent-to-continent collision during that period.

Jan 1, 1991

By M. Tamlin

The state of the lithium mineral industry is closely linked to the performance of the glass and ceramic industries and to the overall economy. Demand for the glass/ceramic products in Europe, Asia and North America remained strong during 1999. This was due to a slight improvement in the economy during the latter half of the year. Consequently, demand for lithium minerals was firm, with a positive outlook. The major economic minerals for lithium are spodumene, petalite and lepidolite. The latter was once the primary mineral. But its importance hasdeclined since the 1960s. The lithium industry consists of two different segments: •The lithium minerals segment mines from hard-rock deposits and physically processes the material to high-grade concentrates. •The lithium chemicals and metal industry segment. The major feedstock for specialty lithium chemicals was previously high-grade spodumene ore converted to lithium carbonate. However, most lithium carbonate is now sourced from salars in North and South America.

Jan 1, 2000

By J. T. YIi-Penttiia

Dust formation and reaction mechanisms of copper matte particles were investigated in simulated flash oxidation conditions. The granulated and ground matte consisted of 72 wt% Cu, 4 wt% Fe and 21 wt% S. Experiments were conducted by using a laminar-flow furnace with a reaction gas composition ranging from 20 vol% to 75 vol% O2 in nitrogen. The particle feeding was carried out by the single-particle method and samples were quenched after a specified reaction time (approximately 0.05-004 s) in a cold water film. Experimental temperatures were between 800 and 1300°C. Chemical analysis was used to determine oxidation degree, and an optical and scanning electron microscope combined with energy dispersive analysis was used for characterization of the reacted particles.

Jan 1, 1998

By A. B. Cecala, G. W. Klinowski

Introduction The US Bureau of Mines has designed and evaluated total mill ventilation systems (TMVS) at two mineral-processing operations. Both systems have proven proficient at cost-effectively reducing respirable dust levels throughout the mills. An 11.8-m3/sec (25,000-cfm) system installed at a clay-processing mill provided about 10 air changes per hour (acph). This system reduced respirable dust concentrations by about 40% throughout the mill building. The second evaluation was performed at a silica sand operation. Tests were performed with 23.6 and 47.2 m3/sec (50,000 and 100,000 cfm) of ventilation to the mill building, corresponding to 17 and 34 acph. Average millwide respirable dust reductions were 36% and 64%, respectively. This work was done to determine general guidelines and design criteria for operations that may be interested in implementing TMVS. TMVS should be designed to draw clean make-up air in near the base of the mill. This air provides general purging and may clear some dust-laden areas throughout the mill structure. It is discharged at or near the top of the structure. Without the TMVS, dust can exit the building through open doors, windows, etc. and contaminate outside plant workers. This dust can also be recirculated back into the mill building causing additional contamination problems. TMVS is not a stand-alone system. It is a supplemental technique to assist other localized dust control systems (Mody et al., 1987). Testing Total mill ventilation systems were evaluated at two processing operations. For both tests, the primary goal was to determine the reduction in respirable dust throughout the structure. Test site No. 1. The first evaluation was performed at a clay-crushing and screening mill in New York. The mill's base dimensions were 39.6 x 9.8 m (130 x 32 ft), giving a volumetric capacity of 4250 m3 (150,000 cu ft). The TMVS was designed to provide 12 m3/sec (25,430 cfm) of ventilation air to the mill, representing about 10 acph. This was accomplished by three 4 m3/sec (8475 cfm) roof-powered exhaustors that were evenly spaced across the roof. Three wall louvers provided inlets for make-up air at the mill's base. Two evaluations were performed at this mill. The first occurred for two days in December when outside air temperatures ranged from -12.2° to 4.4° C (10° to 40° F). Temperatures with the wind chill factor dropped as low as -34° to -40° C (-29 to -40° F) during the early morning. The second evaluation was in April when outside air temperatures ranged between 10° to 26.7° C (50° to 80° F). These two evaluations verified the effectiveness of TMVS in lowering respirable-dust concentrations throughout the mill. Gravimetric-sampler respirable-dust concentrations in December ranged from 0.22 to 2.39 mg/m3 under normal conditions, compared to 0.13 to 1.55 mg/m3 with TMVS. In April, respirable dust concentrations ranged from 0.29 to 4.84 mg/m3 under normal conditions compared to 0.21 to 2.37 mg/m3 with the system on. TMVS also increased visibility throughout the mill building. Dust reductions for gravimetric and RAM-I instruments are listed in Table 1. Each value was determined by comparing the average concentration for the entire day of testing for normal and TMVS values. The mean/standard deviation values for gravimetric and RAM-1 results were 42.5/17.6 and 37.1/16.8, respectively.

Jan 1, 1996

By J. W. Meckenstock

Evidence of the fact that the beneficiation of sand and gravel is now going on is readily observed by visiting various and and gravel plants almost throughout the U.S.A. of necessity this beneficiation process is concentrated more in certain areas than in others, and it is steadily increasing. Therefore, it can be said that beneficiation is now one of the processes inn the manufacturing of sand and gravel, It started some ten to twelve, years ago when the need for beneficiation made itself known, and when the manufacturers of sand and gravel producing machinery began to make equipment available to the industry.

Jan 1, 1958

By B. Blaschuk

The Freeport McMoRan Bagdad Solvent Extraction (SX) circuit is the oldest plant of its kind currently in operation. The plant was commissioned in 1969 and was the second SX-EW operation to be built following the Ranchers Bluebird solvent extraction and electrowinning (SX-EW) plant near Miami, Arizona. Over the years of operation, the configuration of the SX has gone through many changes to accommodate a variety of pregnant leach solution (PLS) grades and flows. Although modifications to the original plant configuration are numerous, the Bagdad SX circuit has maintained its general form consisting of multiple long and narrow settlers. The unique configuration of the Bagdad SX circuit presents a variety of operational advantages and challenges; however, it continues to operate at a level recognized in the industry as excellent.

Jan 1, 2010

By A. T. Yu, K. A. Young, Ronald M. Hays, Sanford Terry, D. R. Campbell, J. K. Lovrien, W. L. Price, C. W. Matthews, W. R. van Slyke, S. P. Cole

Storage and transport systems are essential for mineral processing. Section 10 includes systems for storage and transport of dry bulk materials, slurries, and water necessary for operation of mineral pro¬cessing plants. All aspects of these systems are presented, including material characteristics; dry material placement in and reclamation from storage stockpiles and bins; dry material conveyance; hydraulics (liquid flow and pumping); slurry characteristics; slurry storage and reclaim, slurry flow (distributors, launders, and pipes), and pumping; water (primary and secondary process, reclaimed, fire, cooling, and domestic) supply, transport, and storage; equipment selection and sizing; power transmission; controls; and health and safety. The mate¬rials considered include crude ore; process and other water supplies; initial, intermediate; and final in-plant materials; finished materials; and tailings and other waste products. Section 10 is a compilation of practical operating data for engineers, technicians, and plant opera¬tors. For the design of mineral processing plants, including selection and sizing of equipment, the design engineer should consult with equipment manufacturers, suppliers, engineering firms, and plant op¬erators with specialized experience in particular materials handling methods. When unusual conditions are encountered, actual pilot or full scale testing may be required to insure adequate design. Operation of mineral processing plants is dependent on the proper engineering and construction of storage and transport systems for dry bulk materials, slurries, and water. It is obvious that processing plants cannot produce the required quantities of semifinished and finished products unless these material can be transported adequately to, through, within, and from the plant. Costs of storage and transport systems may exceed 50% of the total capital and/or operating costs. Considerable attention must be given to the design, layout, and engineering of these systems. These systems are interrelated with the mineral processing method and it is necessary to determine the best combination of mineral processing method and storage and transport systems. Storage and transport systems perform a major supportive func¬tion to mineral processing. The final selection of these systems depends on the final selection of the processing method and related systems (environmental control, tailings and waste disposal, etc.). The process¬ing method determines the characteristics of materials to be stored and transported; distances, elevations, flow rates for transport; and storage requirements. Flowsheet After selection of the processing method and related systems, a flowsheet must be developed. This flowsheet should indicate produc¬tion rate, percent solids or moisture, and specific gravity for all initial, intermediate, and final products or product flow streams. It also may be necessary to know the size analysis, chemical analysis, abrasiveness, and other physical characteristics of various product flow streams. The flowsheet provides basic information for plant layout, storage requirements, and selection and sizing of process and transport equip¬ment. Storage and transport systems often function improperly be¬ cause of inadequate flowsheet data or process revisions, resulting in improper equipment selection and sizing. Further details on plant design are presented in Section 33. After selection and sizing of process equipment, it is necessary to select the type of material transport equipment to be used for in¬plant materials handling as well as crude ore, tailings, and final prod¬ucts. The storage and/or surge requirements, including capacity and location, then are determined. Storage and/or surge capacity is neces¬sary for leveling production rate fluctuations due to variations in material characteristics; production scheduling; equipment mismatch¬ing, failure, or breakdown; and scheduled maintenance downtime. Variations in ore grindability will cause fluctuations in throughput or production rate for grinding mills and variations in ore grade will cause fluctuations in production rate for concentrating equipment. Variations in material moisture content and percent solids can have serious effects on the capacity of material transport equipment. In some cases, a blending system may be desirable or necessary to reduce variations and to obtain uniform production and/or metallurgy. Storage capacity often is needed because of different production schedules for various phases of the mining and mineral processing complex. As an example, the mine and coarse crushing plant may operate on a one- or two-shift-per-day schedule while the fine crushing plant and concentrator on a three-shift-per-day schedule. This would require storage between the coarse and fine crushing plants. Another example would be load-out storage where unit trains are used to haul concentrate or final products. The concentrator could be operated on a three-shift-per-day schedule while only I to 2 hr may be scheduled for unit train loading. This would require adequate load-out storage so that the concentrator can be operated continuously. Process equipment with mismatched capacities requires storage or surge capacity between the mismatched equipment to achieve oper¬ating efficiency. As an example, the fine crushers may have greater capacity than the rod mills. Storage between the fine crushers and the rod mills permits both the crushers and rod mills to be operated at optimum capacity with the crushers actually operating or running a lesser number of hours per day. Mismatched capacities for process and transport equipment also may require storage or surge capacity. Mismatching of equipment capacities most often occurs because of the difficulty in equipment sizing. Thus, the design engineer must anticipate where in the flowsheet these mismatching capacities are likely to occur while making every effort to assure that equipment is selected and sized properly. Equipment breakdown can cause major operating difficulties and lost production. These breakdowns can be reduced with adequate scheduled maintenance. Lost production due to nonscheduled down¬time caused by equipment breakdown can be reduced further by standby equipment and storage and/or surge capacity ahead of essen¬tial mechanical and electrical equipment. As an example, standby pumps and conveyors often are available as part of the in-plant trans¬port system. Storage and/or surge bins and tanks often serve dual functions, such as dewatering, mixing, and smoothing production rate fluctuations.

Jan 1, 1985

By Eugene N. Cameron, Igor N. Sviatoslavsky, Harrison H. Schmitt, Gerald L. Kulcinski

The recent discovery of large amounts of helium-3, a valuable thermonuclear fuel, on the surface of the Moon has prompted engineers and scientists to examine the commercial attractiveness, thetechnological feasibility, and the environmental features of this important resource. The main feature of this fuel cycle is the low (˜ 1%) fraction of energy released in neutrons. Such low neutron fluxes result in important reductions in the amount of radioactivity, afterheat, and radiation damage in a fusion power plant. On the other hand, the high fraction of energy in charged particles and synchrotron radiation can be directly converted to electricity, resulting in very high efficiencies of electricity production (˜60.70%). It has been shown that there is 10 times more energy in He3 on the Moon than there ever was in fossil fuels (i.e., coal, oil, and gas) on the Earth. The techniques and equipment needed to extract the helium-3 have been examined and internationally acceptable mechanisms for the industrial development of this resource have been outlined. This paper expands on the financial, environmental, and technical aspects of the recovery of helium-3 for use in the 21st century.

Jan 1, 1990

By C. J. Greet

Grinding with an electrochemically inert grinding media (i.e., high chrome white iron) shifts the pulp potentials to more oxidising conditions, increases the dissolved oxygen content and reduces the EDTA extractable iron concentration when compared with milling with electrochemically active grinding media (forged steel). These changes in pulp chemistry produce cleaner particle surfaces, reduce reagent consumption, and increase concentrate grades and recoveries. This paper presents a robust laboratory test program that not only demonstrates the changes in the pulp chemistry, but also provide an indication of the magnitude of the metallurgical improvements that are possible. While laboratory studies are interesting, the proof is in the pudding! So, the paper provides an overview of plant trials conducted at several porphyry copper operations around the world: Newmont’s Cadia and Red Chris Operations, as well as Evolution Mining’s Northparkes Operation. These successful plant trials clearly demonstrate that selection of the right grinding media alloy will yield savings in grinding media consumption and reagent consumption as well as increases in revenue through improved copper and gold recoveries. However, many of the porphyry copper mines on the Eastern Pacific are copper-molybdenum deposits. The paper presents laboratory test results for typical copper-molybdenum operations and extrapolate these numbers to what might be expected should a plant trial occur.

Feb 1, 2025

By T. M. “Mike” Gurr

"U. S. marketable phosphate rock production for the 2018 crop year (July 1, 2017 to June 30, 2018) showed an increase to 27.7 Mt (30.5 million st) from the 2017 crop year production of 27.1 Mt (29.8 million st), as reported to the U. S. Department of the Interior by the mining companies operating in the United States during crop year 2018 (Table 1). Domestic consumption decreased in the 2018 crop year to 23.9 Mt (26.3 million st), as compared to the 27.2 Mt (30 million st) consumed in crop year 2017. U.S. imports of phosphate rock increased to 3 Mt (3.3 million st) for the 2018 crop year from the 1.81 Mt (1.9 million st) for crop year 2017. Imports of phosphate rock were from Peru and Morocco. There was an increase of 2.85 Mt (3.1 million st) in producers’ stocks from 7.45 Mt (8.2 million st) in crop year 2017 to 10.3 Mt (11.3 million st) in crop year 2018 (Table I).For calendar year 2018, Florida and North Carolina phosphate rock production accounted for 75 percent of the total U.S. production, with the balance being produced in Idaho and Utah. The Florida and North Carolina percent of U.S. production is declining. U.S. production of 25.7 Mt (28.3 million st) in calendar year 2018 was produced by five companies at 10 mines in four states and accounted for approximately 9.6 percent of the world production of 267.7 Mt (295 million st) for calendar year 2018 (Table 2).In calendar year 2018, U.S. phosphate production decreased by 2.2 Mt (2.4 million st), while companies increased stocks of phosphate rock by 1.7 Mt (1.9 million st). The domestic production for calendar year 2018 of 25.7 Mt (28.3 million st) represents 78.4 percent of the domestic production capacity of 32.8 Mt (36.1 million st).At present, China reportedly produces more than 50 percent of the world’s phosphate rock. As a result of planned expansions, Morocco production has increased from 27 Mt (30 million st) in 2017 to 33 Mt/a (36 million stpy), which is approximately 12.3 percent of the world’s production, moving ahead of the U.S. production. In calendar year 2018, the U.S. phosphate rock production was 25.7 Mt (28.3 million st), which is less than 10 percent of the world’s production of phosphate rock (Fig. 1)."

Aug 1, 2019

This paper addresses the valuation and development timing of an undeveloped mineral project. Traditional analysis has us developing the project immediately if its net present value (NPV) is positive. Option pricing theory finds that it is better to wait until the NPV of the property is significantly greater than zero before developing. Alternatively, when evaluating the development timing decision, we must calculate NPV using a higher "timing-adjusted" discount rate, and develop the property only if its NPV using this timing-adjusted discount rate is greater than zero. This paper uses option pricing ideas to convert this development timing advice into a more concrete and user-friendly decision rule: develop the project when its "development-timing NPV" is positive, this development-timing NPV being calculated using the normal discount rate.

Jan 1, 1997

By L. A. Baker

The presence of goethite in a hematite ore has been shown to strongly affect the time of heating to the firing temperature. The investigation of spalling of single pellets and of packed beds has enabled free water and goethite spalling to be identified as separate phenomena. In addition, it has been shown that even for an 18 inch deep bed of green balls the free water and goethite drying periods can be considered separately. Based on this observation, a method of predicting production rate and hood temperature profile is presented. The method required knowledge of the ore goethite content, ore grind and the green pellet bulk density. Laboratory results were found to be in good agreement with actual plant practice and have led to improved process performance.

Jan 1, 1972

By J. Paraszczak

Water-powered jackleg rock drills, introduced recently in South African mines are reported to be more efficient, faster and more comfortable to operate than conventional pneumatic drills. A comparative testing of both drill types was performed in Quebec. Based on its results and time studies done in the mines, water-powered drilling has been reviewed with regards to drilling rates achieved, infrastructure needed, side effects, health and safety considerations. This study shows that the application of water-powered drills may help increase footage drilled and improve working environment, but under specific conditions. The examples of such applications are given in the conclusions.

Jan 1, 1995

By John J. Simmons

Federal and state regulations, in an effort to reduce acid rain, are becoming increasing more stringent regarding sulfur content of fossil fuels. Whereas coal from Illinois and Ohio contains between 1.5 and 37. sulfur, Wyoming has billions of tons of coal reserves containing less than O.5/% sulfur. However, much of Wyoming's coal is high in moisture, 25-30%, and low in energy, 8,200 to 8,900 BTU, vs. 10,500+ BTU for Illinois and Ohio Basin coals. Wyoming currently ships in excess of 130 million tons of coal to utilities as distant as Michigan, Wisconsin, Minnesota, Iowa, Nebraska, Louisiana, Oklahoma, and Texas. With freight charges ranging from $12.00-$20.00/ton, more than $1.5 billion a year is spent to transport water. A test shipment of more than 50,000 tons of Wyoming coal has recently been made from Mobil's Cabello Rojo Mine, south of Gillette, by Burlington Northern to the Robert's Bank British Columbia coal terminal for transloading and shipment to Taiwan Power Company. This coal assayed approximately 8,400 BTU/lb. and 277. moisture. Carbontec Energy Corporation feels the future availability of dried coal containing 11,000+ BTU could substantially enhance the potential export as well as the domestic market for Wyoming coal. Large and small utilities, along with industrial furnaces require tens of millions of tons of Wyoming, West Virginia, and other Eastern The federal government is encouraging the expenditure of hundreds of million of dollars by utilities to retrofit their boilers to allow them to burn higher sulfur coal. This program, if carried to completion, would cost many tens of billions of dollars, with the net result being high power costs sustained by the utilities. These costs will be passed on and paid for by the American consumer. A sensible alternative would be the burning of low sulfur coal by the utilities, without costly capital and operating expenditures. Carbontec Energy feels the successful operation of a Carbondry Coal Drying Plant in Wyoming will be the forerunner to other similar and larger operations in the State. CARBONTEC RESEARCH The activities of Carbontec's personnel to develop a viable process to dry sub-bituminous and lignite coal goes back some 14 years; in fact, for some of us it goes back to 1962 when we were involved in a program under which lignite coal from Truax Trayer's Velva mine was placed in low sulfur coal, which are burned alone or blended with high sulfur, Midwestern coal. Carbontec believes that a high BTU. reasonably priced, shippable coal fuel produced in Wyoming and delivered at costs competitive with Eastern low sulfur coal, could offer substantial benefits to Wyoming coal producers, utility customers, and to the State of Wyoming.

Jan 1, 1989