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By Claude P. Heiner

While the title of this paper embraces the entire West Coast, the author, in the interest of simplification. has confined the discussion to California-particularly the central section. California's population has, risen 45 pct since 1940. Its electric requirements have also increased, not only because of the growth in industry and population but also because of the widespread tendency of all types of electric consumers to use more electricity than ever before. The growth of California's electric utilities is shown by published data covering operations, of three of its large systems and is given in Table 1.

Jan 1, 1949

By R. M. Quinlan

The coal industry in the United States has undergone significant economic changes during the past six years. The price of coal remained relatively constant from 1950 to 1969 (See Figures 1 and 2). Steam coal prices tripled and metallurgical coal prices doubled from 1969 to 1974. This price structure has created a new economic environment for coal preparation. Contributing factors to these price trends include: ? Coal Mine Health and Safety Act of 1969 ? Mid-East oil embargo of 1973 ? United Mine Workers of America contract agreements ? Productivity decrease (tons per man-day basis) ? Environmental Protection Agency regulations The increased value of coal justifies additional capital investment in cleaning facilities to optimize yield. Current trends include recovery of existing slurry ponds and recleaning of refuse. Coal preparation plant product yield and quality must be evaluated in terms of the amount of capital expended and cost of operation. Therefore, it is advantageous to optimize the plant product based on clean coal selling price and rate of return on investment.

Jan 1, 1976

By W. E. Benton

Diatomite or diatomaceous earth is a siliceous sedimentary rock principally made up of the skeletal remains of the diatom, a microscopic, single-cell aquatic plant related to algae. The unique structure, chemical stability and physical properties are the major attributes of diatomite not met by other forms of silica. The production of diatomite was down in 1982 vs. 1981, reflecting the worldwide recession. The principal markets for diatomite products continue to be basically filtration and fillers. The outlook is for small but steady growth into the 1990s.

Jan 1, 1983

By W. J. Miles

Diatomaceous earth or diatomite is a sedimentary rock of organic origin that is composed principally of the silicious skeletal remains of diatoms. Diatoms are microscopic single cell acquatic plants that are related to algae. Diatoms first became abundant in the Cretaceous period from about 65 to 135 million years ago. Most of the commercial deposits are of Pliocene through recent age, and are younger than 35 million years. Diatoms are still abundant in present day lakes and seas. The living diatom is supported and protected by two half cell walls or valves united by a connecting band or girdle. These valves are composed of opaline silica extracted from the water in which the diatom lives. After death of the diatom, the silicious remains settle in the lake or sea and accumulate at variable rates approaching several millimeters per year for very active diatom colonies. This accumulation of silicious sediments, after decay of the organism, burial, and uplift, can result in the formation of diatomaceous earth deposits.

Jan 1, 1987

By Earl Rau

Introduction Will cogeneration be a major power source in the future? The location of electric power generating plants has changed. In 1900, more than 50% of electricity was generated by industrial plants. Since then, industrial plant generation of electricity greatly decreased to 17% in 1950 and to only 3% in 1980. Changing economics in electric power generating costs, though, may allow cogeneration to reverse this trend. Cogeneration has been defined as the simultaneous production of electric (mechanical) and thermal energy from a single energy source. Some applications are considered to be byproduct generation of electricity from industrial, thermal operations. Cogeneration is not new to the mining and minerals industry. Smelters and steel mills have used waste heat to generate electricity. Public Utilities Regulatory Policies Act of 1978 The potential for increased industrial cogeneration of electricity is related to the March 9, 1978 enactment of the Public Utility Regulatory Policies Act (PURPA). The US Supreme Court ruled that PURPA is constitutional. The court upheld requirements that utilities interconnect to cogenerators. It also ruled that 100% of avoided costs be used as the guideline for electricity sales by a qualifying facility (QF) to a utility. The state of New York established a floor price $0.06/kWh for electricity sales from a QF to a utility. It is obvious, then, that a cogenerator must first establish price and then become a qualifying facility in order to sell electricity to a utility. Proposed cogeneration plants The estimated industrial cogeneration potential for the years 1986 to 2000 is 9500 to 25,000 MW. Industries represented in this cogeneration estimate are pulp and paper, petroleum, chemicals, food, textiles, rubber, plastics, steel, lumber and wood, cement, glass, metal fabrication, and industrial parks. A cogeneration plant has been proposed for the Union Carbide chemical plant in Institute, WV. A steam turbine/generator would be installed to replace the pressure-reducing valve in the 2.7 MPa (400 psig) header. Scott Paper Co., Mobile, AL, proposed a cogeneration plant using a coal- and wood-fired boiler and a turbine/generator to produce process steam and electric power. A cogeneration system has been proposed for a large oil refining plant. A pulverized coal boiler would produce high-pressure steam to operate a turbine, generator. The exhaust steam from the turbine will go to the process and an existing turbine. Kansas City, MO's Armour meat-processing plant has proposed a cogeneration plant. This proposal is to use a natural gas or oil-fired, gas-driven turbine and a generator. The waste heat from the gas turbine would go to a heat recovery boiler for use as process heat. Dade County, FL is implementing a central energy system to supply electricity, air conditioning, and domestic hot water for five buildings in downtown Miami. The cogeneration system is to provide flexibility, to optimize fuel use efficiency while serving the variable thermal demands. Generation of electricity from municipal waste is not considered to be a cogeneration process but is covered by PURPA. Special considerations are provided for waste/electric power generation to encourage the development of these systems. ?

Jan 7, 1987

By P. E. Cavanagh

Introduction A comprehensive study of the economics of processes for smelting iron ores has been made by the Ontario Research Foundation on behalf of the Ontario Research Commission. This survey has included investigations of all processes in commercial use, and proposed processes which are still in the experimental stage. The two main objects of this work were to discover (l) whether any known processes would be particularly suited to present and future Canadian conditions, and (2) whether any new process would be of assistance in solving the present scrap shortage in Canada. The future prospects of the Canadian iron smelting industry have changed radically in the past ten years. For nearly twenty years before 1939 no iron ore was mined in Canada. The ore used was imported, mainly from the United States and Newfoundland. The economics of iron blast-furnace smelting always force the location of blast furnaces near the source of coal for making high-grade metallurgical coke, and near the market for iron and steel, rather than near the iron ore. Blast-furnace installations in Canada are confined to the north shores of the Great Lakes with ready access to United States coal and ore and the major Canadian markets, and to Nova Scotia near the coalfields of that Province. This distribution of primary smelting capacity naturally results in relatively high prices for iron and steel in the West, the North, and in Quebec.

Jan 1, 1948

By D. M. Davidson

The economics of geologic exploration have changed materially in the past decade primarily due to the change in three basic factors, namely, increased wages and salaries, increased cost of materials, and a greater complexity in methods of exploration. Following the general economic pattern over the past ten years, exploration costs, have, in general, increased, although there is one heartening exception. A comparative picture is complicated because of advances in techniques which ensue from the introduction of new methods and devices largely for aerial exploratory work, Some of these methods were either in their infancy or unknown before World War II. Geological exploration may well be considered as a form of applied research. True, it has peculiarities from this standpoint some advantageous, others disadvantageous, Some of the advantages lie in the fact that exploration success does not involve the production of a new product which necessitates advertising expense and marketing problems. In normal times there is a well established market for the fruits of a successful mineral find. The outstanding disadvantage of exploration lies in the enigma of deciding when to quit if the sought fop prize is elusive. In the search for buried treasure, man?s curiosity is apt to color his judgment. Even the so-called detached scientist may fall 'all too readily into the wishful thinking of the old- time prospector who is lured on by the thought that the next pull from the drill hole, or the next round from the face will reveal a bonanza. It involves mature judgment and experience to ascertain the stage in exploration when further work is not justified.

Jan 1, 1958

By P. Amponsah-Mensah

Dilution of ore has a major impact on economics of a mine. The magnitude of dilution depends on mining method, stope dimensions, reef and host rock quality, wall support and drilling accuracy. The main contributing factor is the presence of very weak graphitic shear band of varying thickness in and around the reef. The reef, at Obuasi, is generally steeply dipping and open stoping is the predominant mining method. The stability of the stope walls limits the stope dimensions. Various options for allowing larger stopes for higher productivity and limiting dilution are analysed. The most economic way is to reinforce the walls with systematic cablebolt supports. This option does not only add the support cost but also requires additional cost of access development. These conflicting requirements are continually being optimised at the mine for the economics of dilution control. La dilution du minerai à un impact majeure sur l’économie d’une mine. La quantité de matériel diluant le minerai dépend de la méthode d’extraction, de la dimension des chantiers d’abattage, de la qualité du filon et de la roche mère, du support des épontes et de la précision du forage de production. Le facteur principal qui contribue à la dilution est la présence d’étroites zones cisaillées qui contiennent du graphite ayant différentes épaisseurs à l’intérieur et autour du filon. Le filon, à Obuasi, est généralement à fort pendage et la méthode d’abattage principale est par chantier long-trous. La stabilité des épontes est le facteur qui détermine la dimension des chantiers d’abattage. Differentes options ont été analysées de façon à permettre de plus larges chantiers de manière à augmenter la productivité tout en limitant la dilution. Le moyen le plus économique est de renforcer les épontes avec des cables d’acier cimentés forés de façon systématiques. Cette option n’augmente pas seulement les coûts de support mais aussi les coûts de développement. Ces besoins contradictoires sont continuellement revisés à l’opération afin d’optimiser l’économique par le contrôle de la dilution. Verdünnung des Erzes hat eine spürbare Auswirkung auf die Ekonomie einer Grube. Die Größe der Verdünnung hängt von gewinnenmethode, von den Stopemaßen, von der Reef- und Wirtsfelsenqualität, von der Wandunterstützung und von der bohrengenauigkeit ab. Der beitragende Hauptfaktor ist das Vorhandensein einer sehr schwachen graphitic Scherbandes unterschiedlichen Stärke in und um der Reef. Der Reef, bei Obuasi, taucht im allgemeinen steil ab und geöffnete Aufstemmung ist die überwiegende gewinnenmethode. Die Stabilität der Wand begrenz die Stope grösse. Verschiedene Wahlen für das Erlauben der größeren Stopes für höhere Produktivität und das Begrenzen von Erzesverdünnung werden analysiert. Die ökonomischste Weise soll die Wände mit systematischen Kableankerbolzenunterstützungen verstärken. Diese Wahl addiert nicht nur die Kosten der Unterstützung aber erfordert auch zusätzliche Kosten fuer Zugangsentwicklung. Diese kontroversen Anforderungen werden fortwährend an der Grube analysiert um die Verdünnungkontrolle zu optimieren.

Jan 1, 2003

This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

By W. M. Myers

Certain minerals possess inherent color and other properties that make them suitable for the pigmentation of paints, mortar, plaster, concrete, face brick, and other materials. Their production is one of the most ancient of mineral industries and their use by primitive man is well known. These natural pigments have some economic factors in their favor, particularly wide geographic distribution, low cost of production, ease of preparation, chemical stability, and permanence in use so that they continue to form the basis of a small but useful industry. When used in paints such pigments act as a filler and supply body and opacity in addition to color. Natural mineral pigments are prepared for the market by the comparatively simple operations of washing, grinding, blending, and calcining. Any one, or all of these processes may be applied to a single pigment. The development of synthetic pigments and the use of by- product materials have introduced competition with the products of nature and are having a growing influence on the economic position of the mined minerals.

Jan 1, 1949

By Hans E. Tausig

The economics of transporting minerals by sea in less than full cargo lots encompasses an analysis of production costs, sale and inventory calculations and a careful comparison of ocean freight costs all of which when pieced together will usually definitively indicate which of the ocean freight alternatives is the correct one for the economic factors involved. To illustrate: Let us assume that a production to be marketed yields 60,000 metric tons of copper concentrates over a twelve month period. Shipment is geographically viable through Vancouver, B.C. The production has been sold to a Japanese Smelter and the mine produces at a rate of 5,000 metric tons of concentrates per month. The copper has been sold CIF FO. The Seller has carefully investigated ocean freight rates Vancouver, B.C./Hibi, Japan and finds that he could obtain a twelve month freight contract at $15.00 per metric ton FIGS based on a loading/discharging speed of 4000/ 2000 metric tons per WWDSHEX (weather working day, Sundays and Holidays excluded) this freight rate being predicated on shipping in lots of minimum. 15,000 tons. A further freight investigation reveals that to ship at the same terms and conditions but in lots of 5,000 tons, and shipping each month (in accordance with the mine's actual production) would cost $20.00 per metric ton FIOS. The calculation that is now made is whether it is more desireable to pay a higher ocean freight by shipping in 5,000 ton lots or to pay the lower freight where here the ocean freight involves a difference of some $300,000.00.

Jan 1, 1979

By C. H. Lieb

ONE astounding fact in the production of petroleum is the comparatively recent realization by producers that flowing production is the cheapest crude produced. About 1910 or even later, operators actually endeavored to get a producing well to pumping as quickly as possible after completion. A well was not really considered to be completed until it was operating on the pump. Remarkable progress has been made since then. It was not until about 1920 that producers began to take a serious interest in pressures and to think a little about proper methods of handling oil wells. Pressure gauges were installed, and records of pressures maintained, which was quite an innovation. Desultory experiments were made with tubing of different sizes, as well as experiments with placing the bottom of the tubing string at different levels in the well. Probably the first important departure from customary procedure was about 1926, during the Seminole development, when gas lift

Jan 1, 1936

By Paul M. Tyler

MUCH information concerning pegmatites which was thought to be true a few years ago has been proved false, and what is now actually known about some pegmatites is not true of many others. The erratic and seemingly unpredictable structure and variable composition of this class of mineral deposits has been widely emphasized. Even parts of the same pegmatite body exhibit marked differences in texture, mineral composition, width, and attitude. Constructive geological thinking in respect to pegmatites now aims to establish general laws rather than to stress the confusing diversity of features having no special economic significance.

Jan 9, 1953

By Henry Hebley

IN preparing this paper it has been the aim of the writer to keep the problems of both producers and consumers in mind. Until now, no attempt has been made to familiarize each group with the other's practice and limitations. This paper is an effort to acquaint the readers with some of the factors pertaining to the problem and cost of mining and preparing steam coal, and also to the economics of producing steam with such coal. In recent years all lines of endeavor have turned to intensive mechani-zation in order to lower the unit cost of production. The average fuel consumption in steam electric generating stations has dropped in 20 years from 4.0 lb. to 1.4.1b. per kilowatt-hour; while the modern power station can generate 1 kw-hr. on a fraction under 1 lb., or 13,000 B.t.u. coal. Also, the amount produced per man has in that same period risen from 3.8 to 8.2 tons, owing to the use of modernized equipment below ground for coal cutting, drilling, shooting, loading, hauling and hoisting. Unfortunately, the rapid speed of 5 tons per minute of operation at which the coal is loaded mechanically precludes any appreciable removal of impurities at the coal face, so that the raw coal is hoisted containing a markedly higher percentage of impurities than the hand-loaded coal, which was subjected to the scrutiny of the miner during loading. Also, during the past 20 years, certain seams of coal lying close to the surface have been made economically available by the improved design of electrically operated shovels and draglines for the removal of overbur-den running as high as 56 ft. This strip coal frequently contains so much ash in the raw state (Table 1) that it would have no sales value. There-fore, coal preparation must be adopted to beneficiate the raw product. Some seams in the United States have a decreasing ash content with decreasing size, owing, in all probability, to the fact that the coal is friable while the impurities are hard, causing a concentration of the low-ash material in the fine sizes. Illinois No. 6 coal being rather hard, naturally the reverse is true.

Jan 1, 1937

By W J. Dyck

Past attempts to establish an integrated steel industry on the West Coast of Canada have been unsuccessful for at least three reasons: (a) insufficient reserves of a suit-able iron ore supply; (b) a relatively small local market for iron and steel; and (c) the non-availability of an economical process to produce primary iron on a small scale. Today, the reserves of economically mineable ore deposits are ample to support a steel production of 100,000 to 200,-000 tons per annum. The local market has increased so as to be able to absorb most of this capacity. With-in the next few years, a small integrated steel plant, including the "H-Iron" direct iron ore reduction process for electric furnace charge stock production, will be able to show a profitable operation. Introduction

Jan 1, 1963

By E. C. Wright

FOR many years the cost of making pig iron and steel in the Birmingham district has been about the lowest in the United States. The close proximity of the important raw materials such as coal, iron ore, limestone, and the large available scrap supply made it possible to assemble all of the important ingredients necessary for steel- making with only nominal costs for transportation. Both iron ore and coal were being mined in this district at one time for about $1 per ton from underground operations. At that time mining wages were low everywhere and the labor rate in the South was considerably below that of other mining districts. This situation persisted until the emergence of labor unions as an economic and political force, emigation of southern labor to northern plants, and continued growth of industry in the South in the years following the depression of 1932. Since that time union organizing of miners and steel workers throughout the nation has increased labor costs in mining and steelmaking. This influence has been felt particularly in underground mining operations since the proportion of labor cost to total cost is still high. The previous advantage in basic labor rate in the South has been almost entirely eliminated by the equalization of labor rates in basic industries by national unions. Since 1945 these influences have been especially noticeable in increasing the cost of mining coal and iron ore in the South. The northern steel districts are still being largely supplied with iron ore from the Minnesota open-pit mines and the cost of this ore has not increased nearly as much as the cost of ore obtained from underground mines in Birmingham. A similar situation exists in coal mining; the thinner seams in Alabama are not so amenable to mechanization as the northern mines and, as a result, the output per man-day in southern mines is only about three tons of coal as compared to five or six tons per man-day in the large captive mines of West Vir-

Jan 1, 1950

By P. M. Sullivan

A physical beneficiation flowsheet was designed by the Bureau of Mines for reclaiming and recycling metal and mineral values contained in municipal incinerator residues, and a continuous processing plant was installed. Residue samples collected from incinerators located in various parts of the country were processed at a rate of 1/2 ton per hour. Continuous screening, shredding, grinding, magnetic separation, and gravity concentration techniques were applied to produce metallic iron concentrates, clean nonferrous metal composites, clean fine glass fractions, and tine carbonaceous ash tailings. Research to develop systems for refining and upgrading the reclaimed metals and glass into marketable products is also underway. From the engineering data developed in the continuous processing plant, evaluations of the capital and operating costs for plants with capacities of 250, 400, 670, and 1,000 tons of dry incinerator residues per day were made. Research on a parallel system to separate and recover the metals, minerals, glass, paper, and plastics from raw, unburned refuse it currently underway, as are studies on the use of air classification to separate the refuse into organic and inorganic fractions.

Jan 1, 1971

By L. Rodd, C. Walker, T. Koehler

"The energy content of slag represents approximately 80% of the total energy inputs to a laterite nickel electric smelting furnace. Conventional slag handling methods produce only low grade heat and the entire thermal content of the slag is wasted. A heat recovery system proven on BOF slag in the mid 1980's can be adapted to a laterite nickel rotary kiln electric furnace (RKEF) plant. Slag is granulated using a high velocity air jet inside a waste heat boiler to produce slag granules. Granules are cooled during flight via radiation to water-cooled boiler walls and by convection to the granulation air. This system has the potential to recover 80% of the total slag energy in the form of hot air and steam.Integration of the recovered slag energy into the RKEF smelter can be achieved by a number of methods, including the use of preheated air at the ore dryers, kiln or existing power plant. Energy from the slag boiler may be used to reheat boiler feed water from the power plant or to produce superheated steam and generate electricity. The heat recovery system can provide up to 25 - 30% of the total electrical requirement of each RKEF line and a reduction in CO2 emissions of 234,000 tonnes per year.The total cost of slag heat recovery, including CAPEX and OPEX, is $2.5/GJ, which is competitive with using coal when CO2 credits are $18 per tonne. With Clean Development Mechanism (CDM) carbon credits currently selling at €13 ($20 USD) per tonne CO2, there is considerable opportunity for slag producers in regions including South America, Korea, Indonesia and Africa. Increasing fuel costs and more wide-spread legislation for GHG emissions will likely create conditions in which slag heat recovery could generate a favourable return on investment."

Jan 1, 2010

By James W. Estep

The sulphur shortage that has occurred in the past two years has directed attention more and more toward sour natural gas reserves, Wellhead values of sour gas vary widely depending upon the acid gas composition, location, market conditions, and necessary processing charges. Preparation of a saleable residue gas is considerably more involved and expensive than that normally encountered in treating a sweet gas. Recent revisions in sales gas specifications have increased capital costs and processing charges. The presence of hydrogen sulphide and carbon dioxide in a natural gas contributes to shrinkage factors that may approach 50%. Fuel required by the gas sweetening process and sulphur slant tail gas incineration also contributes to a further reduction in the volume of residue gas available for sale. The additional processing facilities involving gas sweetening, mercaptan removal, expanded utilities, sulphur recovery and sulphur handling, all demand additional operating and maintenance staff. A favorable sulphur market under certain conditions may justify the processing of sour gas whereby sulphur is either a by-product or a co-product, Five typical cases involving different compositions of sour gas are presented for evaluation. Capital costs, operating problems, and operating costs are presented in detail for full economic evaluation

Jan 1, 1967

By P. T. Allsman

INTRODUCTION The honor of being the recipient of the Mining Society's Daniel C. Jackling Award for 1966 imposes on me the responsibility to search for the subject that I would be best qualified to discuss. It seems that my experience in the mineral industry — nearly 15 years in private and 30 years in public employment — should uniquely qualify me to comment upon the relationships between the mining industry, mineral engineering as a profession, and government, and the changing economic, technologic, political and social changes that dictate their relationships. Such conditions, the increasing knowledge of the world mineral resource base, the greater demands of an expanding population with a rising standard of living, shall be evaluated with respect to our profession — mineral engineering. In all of these forty or so years, I have been in close touch with many phases of the mineral and energy resource industries, especially those of the United States. Particularly during the past 10 years, I have had a ringside seat at the "goings on" in Washington. During all of this period I have observed and analyzed many of the problems of the industry and its relations with the government. During the past few years, I have had increased opportunity for doing research and have found a need to learn something about the mathematical techniques that are undergoing such a revival since electronic computers were developed. One of these techniques is multivariate analysis, which is a system for correlating a large number of complex variables. By applying this technique to the seemingly chaotic present-day situation, there emerges a course of steady improvement in the minerals resource industries that wars, depressions, and political strife have failed to obstruct for long. In short, I advocate a need for new concepts in mineral engineering to cope with the changes, pos- sibly adding many more specialized areas on one end of the spectrum, and broad engineer-generalist approaches at the other. The meeting place shall be where the intricate mineral resource problems at the frontier of knowledge merge into the socio-techno-logical problems of the world. HISTORICAL INVOLVEMENT OF GOVERNMENT IN MINERAL RESOURCE PROBLEMS Involvement of government in mineral resource problems undoubtedly is as old as government itself. But passage of the Mining Act of 1866, superseded by the Act of 1872, was the first major entry of our Federal Government into the problems of mining. Passage of the law was necessary to resolve many conflicting claims and disputes in mining. The General Mining Law of 1872 and the Mineral Leasing Laws of 1920 apply to millions of acres of public lands and to certain privately owned land on which the mineral rights have been reserved to the Federal Government. The extensive involvement of government in the mineral industry business today often comes as a shock to the mineral engineer who has begun to climb the ladder to the top in his company. He is often poorly prepared to cope with the situation and becomes frustrated and even hostile. Better knowledge of the role of government perhaps would ease his situation. In our political system, private industry is responsible for producing minerals. To make certain that the production is adequate for a peace-time economy, and to guarantee the Nation's security in an emergency, the Federal Government finds it expedient to develop policy and engage in regulatory, educational, and research activities. A few examples will illustrate the varied role of government in relation to mineral problems. In varying degrees many agencies of the Executive Branch of Government have responsibilities that influence the functioning of the mineral and energy industries. In addition, of course, Congress, the Judiciary, and State and local governments exercise great influence. The Department of the Interior is primarily responsible for activities to promote the development and conservation of mineral and fuel resources, and the

Jan 1, 1967