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By Klaus-Peter M. Hanke

INTRODUCTION In early 1979 Jim Walter Resources, Inc. (JWR) of Brookwood, Alabama approached TMCI Construction, Inc (TMCI) to make a proposal on a program that involved the sinking of up to 10 ventilation shafts of approximately 6.7 m (22 ft) diameter and ranging in depth from 500 to 700 m (1650 to 2300 ft) for the JWR coal mines in Alabama. At this time TMCI was already constructing the first spiral underground bunker (capacity 2000 tons) in North America for the JWR organization at their No. 4 mine in Alabama. The TMCI proposal was based on the use of the mos modern large diameter shaft boring machine rather than sinking the shafts using the conventional drill blast-muck technique. The proposal was made based o: the experiences by the parent company, Thyssen Schachtbau, which has been using this type of machin in Germany for shaft boring since 1971. As a result of the TMCI proposal JWR issued a purchase order to TMCI for the construction of four 6.7 m (22 ft) diameter, concrete lined, unfurnished ventilation shafts ranging in depth from 500 to 700 (1650 to 2300 ft). An order was thus placed with WIRTH Machinen- and Bohrgeraete Fabrik GmbH, in Germany for the manufacture of a model 650/850 E/Sch "Schachtbohrmaschine" (Vertical Shaft Borer = V-mole which arrived on site in Alabama in early 1981. The first V-mole GSB 450/500 was introduced in Germany in 1971 and was capable of enlarging in one step a pre-drilled 1.2 m (4 ft) pilot hole to 4.5 - 5.0 m (14.7 - 16.4 ft). This machine has sunk 9 staple shafts and deepened one surface shaft for a total of 2360 m (7740 ft) of shafts. On the last shaft boring operation in 1978 the machine was converted as an experiment to drill without a pilot hol using a hydraulic pumping system to remove the cutting debris. A second generation machine, the SB VI 500/650, was introduced in 1977 for enlarging the pilot hole to a range of 5.0 - 6.5 m (16.4 - 21.3 ft) diameter. This machine is still in operation and has already drilled well over 2000 m (6500 ft) of shaft. The third generation of V-mole, the SB VII 650/85( for diameters from 6.5 to 8.5 m (21.3 to 27.9 ft) was: commissioned in May 1980 and has been used for two surface shaft deepenings totalling 606 m (1990 ft) with another scheduled for 1982. The main advantages favouring the use of such V-moles were identified as: 1) A reduction in manpower to the crew required in a conventional shaft sinking operation. 2) A considerable reduction in time to complete a shaft compared to conventional techniques. 3) The use of the V-mole eliminates many of the hazards encountered in conventional sinking. Based on the successful performance of the first three V-moles in Germany, Thyssen Schachtbau decided to employ this principle abroad. In 1980 a second machine of the third generation was built and is now operated by TMCI Construction, Inc. in Alabama. The first shaft was completed at the end of 1981 and this paper describes the method of operation including some unique aspects not attempted on prior V-mole operations and some of the statistics arising out of the experiences during the first shaft boring operation. THE NO. 7 MINE FAN SHAFT SITE Jim Walter Resources, Inc. was formed in 1970 to exploit the coal field in Alabama on the southern tip of the Appalachian coal field. The coal reserves amount to around 650 million tons of mainly good quality coking coal of which about 350 million tons are to be extracted over the next 30 years. Shaft sinking and preparatory work began in 1972, and at present 6 mines are producing around 5.4 million t.p.a. Annual production is to expand to 10 million t.p.a. as soon as possible, and the ventilation shafts to be sunk by TMCI play a vital role towards attaining this goal. The first shaft site is located at the No.7 mine, near Brookwood, Alabama. The actual location of the shaft relative to the production shafts is shown on the mine plan (Fig. 1), which also shows the room-and-pillar extraction system used at present. The mine plan further shows the conveyor route used for the muck removal. The geological survey showed that the strata consisted of horizontal layers of mainly sandstone, sandy shale and shale interspersed with several coal seams. The seam being extracted at the No. 7 mine is a combined seam made up of the Blue Creek and Mary Lee seams at a depth of 513 m (1682 ft) and having an average seam thickness of about 2 m (6 ft). At the beginning of September 1980 the surface site preparation and pre-grouting work was completed by JWR, and TMCI was able to commence with Stage I of the shaft sinking program - the drilling of the pilot hole.

Jan 1, 1982

By L. A. Cowan

IF the elements of personality be those characteristics in which humans differ, and if this definition be applied to the purchasing department for the Climax operations in Colorado, it must he concluded that this department has no distinguishing traits that would give it a departmental personality different from that possessed by the similar department of any progressive mining enterprise. Or, one may go further by stating that the rudimentary functions of any purchasing practice employed principally in the acquisition of maintenance, repair, and operating supplies are much alike, whether or not the industry involved be mining or milling. However, in the fact that the principal purchases of a mining company are materials for maintenance and repair and consumable operating supplies lies that essential characteristic which differentiates mining and milling purchasing functions from those of the manufacturer, the fabricator, or the ordinary processor.

Jan 1, 1946

By Donald L. Katz

FIFTEEN years ago Dr. Manning published a paper in "Petroleum Development and Technology" on '.Fundamental Research Relating to Petroleum." He tabulated for several industries "the proportion of their present success which can be fairly attributed to the application of information and processes obtained by scientific research," giving petroleum a score of 7 compared to 100 for the electrical and coal-tar industries. Today the petroleum industry as a whole and the producing groups both have raised their score beyond the majority and are climbing toward the top. Present practices are being developed both by fundamental research and the application of the research method in field operation.

Jan 1, 1941

By R. C. Canby

JUDGE GRANT, in a delightful satire of his, says: "Boston is a state of mind." I think that this same statement might well be made of the metallurgy of lead. I was particularly impressed with this when about thirteen or fourteen years ago I prepared a paper on "Development of the American Water- jacket Lead Blast Furnace." Dividing the time, as I did into ten-year periods, from the commencement of lead smelting at Eureka, Nev. (1870), and showing the tendency for each of the five decades it was evident that the progress had been through a succession of states of mind from the rule of thumb through the ultra scientific, or from what I might call the slag type period up to the present highly developed art. Conservatism has been characteristic of the metallurgist. This may have been most natural, especially with the lead metallurgist, the development of whose art was so entirely in the custom smelting plant, where the metal contents of his ores were paid for in cash and therefore excessive metallurgical losses could mean nothing short of financial bankruptcy. The metallurgist himself was held to a personal account, in these smelting plants. It was the metallurgist who was accountable. In the concentrating plants, if undue losses occurred remodelling of the plant was discussed, but if there were excessive metallurgical losses in the custom smelting plant, a new metallurgist was considered as the remedy. For this reason the tendency was to adhere to recognized practice and to be wary of unusual methods, using the word unusual in the sense in which it is used in Article VIII of the Constitution of the United States, as to punishments and modes of death. This conservatism of the metallurgist was reflected as other branches of metallurgy were developed. We have heard of the wonderful development of flotation, but it had to be introduced over the dead metallurgical bodies of its opponents.

Jan 1, 1926

By K. D. Jacob

IN the decreasing order of the tonnages involved, the uses of phosphates can be grouped conveniently into three general classes, namely, fertilizer; chemicals for military, industrial, and technical purposes; and mineral feed for livestock. The quantity of phosphate used as fertilizer, principally in the form of superphosphate, has always exceeded by far that used for all other purposes, though in recent years a marked increase has occurred in its consumption for the other two general classes of uses. Prior to the present century large quantities of superphosphate, as well as a considerable portion of the production of phosphorus chemicals, score made from bone materials which were plentiful and cheap in some areas and which could be more easily processed than phosphate rock for the manufacture of chemicals. Today, however phosphate rock has almost completely displaced bone as a raw material for the manufacture of chemically processed phosphates in nearly all countries of the world.

Jan 1, 1944

By K. D. Jacob

MONTANA Phosphate Produucts Co., a subsidiary of The Consolidated Mining and Smelting Co. of Canada Ltd., operates three properties near Garrison, Mont., known as the Anderson, Graveley, and Luke mines. All three are underground operations, mining the same narrow bed at points several miles apart. The Anderson, the oldest and largest of the three, has produced about 700,000 long tons since 1929. The Graveley has produced slightly over 100,000 long tons since 1940, and the Luke, acquired in 1943, is still in an early stage of development. The great bulk of the output has been shipped to the Trail, B. C., plant of Consolidated Mining and Smelting Co. for use in the manufacture of fertilizers. The phosphate seam is the basal member of the Permian Phosphoria formation. In all three mines it has a uniform thickness of 3 to 4 ft. of oulitic phosphate, with a few shaly partings. The overlying part of the formation comprises about 50 ft. of chert and the immediate footwall consists of a few feet of shale and sandstone. underlain by the Quadrant quartzite.

Jan 1, 1944

By A. J. Weinig

NEED for some simple method of determining tonnages in mill circuits has always been felt by operators and consultants alike. To meet this demand the following method was evolved and has been found accurate and practical after considerable testing on various mill flows. The essence of the method is to add a chemical at a uniform rate to a mill flow, such as a launder conveying pulp, and then determine the concentration of the added chemical in a sample of the pulp. From this procedure the tonnage can be calculated. Common table salt has proved the most satisfactory chemical for ordinary conditions. It has many decided advantages for use in tonnage determinations, among them being the following:

Jan 1, 1933

By S. H. Ash, J. J. Forbes

Probably the newest thing in mining safety, or safety for mines, is the apparent dissatisfaction on the part of the mineral industries, as represented by both management and labor, and the general public of the Nation, with the safety record of the mining industry. This is reflected by published comments and papers in the technical press;l-9 in labor periodicals,10,11 in popular journals and periodicals,l2, 13 and in the daily press; also by discussions of the Safety Committees sponsored by the National Safety Council,9, 14-15 the American Mining Congress,l.l6 the American Institute of Mining and Metallurgical Engineers,2,4 the Mine Inspectors' Institute of Amerthe Coal Mining Institute of America,5 19 the American Standards Association, and others.20.21 Mining safety is a joint problem of management and the individual workman. Safety is not attained and will not be attained solely by laws, decrees, and commands because, if it could be done in this manner, acceptable mining safety would have been achieved long ago by the individual states in our Nation and by the nations abroad. The best safety performance is found at plants where management provides a safe environment for the workers; where supervision is efficient and super- visors, others concerned with promoting safety, and the individual worker know through training, experience, and personal contact the safe and unsafe practices of their field; and where the trained individual worker has become safety-minded by experience, quiet influence, unconscious suggestion, and personal guidance. Despite what may be said to the contrary, progress has been and is being made in mining safety. This is shown in Fig 1 to 4. It is beyond the scope of this paper to give possible reasons for the valleys and peaks in the fatal-injury rates. Some recent factors that appear to be contributing to the improvement in these rates are briefly discussed. Aside from mining equipment, "what's new in mining safety" for some mines has been in effect or was tried by others long ago. A safety pro- gram is a living thing; as such, it must be vitalized and continuously fed with enthusiasm, constructive action, and improvements. Because safety is concerned with human conduct, it is necessary to practice safety at all times; if not, it is soon forgotten, and accidents occur. Mining-safety Records The large employment and production concerned with anthracite contribute much to the mining-safety records of the mineral industry. Approximately 81,000 persons are. employed in this industry having mines concentrated in an area of 480 square miles in northeastern Pennsylvania. Because of the achievement of the anthracite industry in safety during 1948, the other branches of the mineral industry can profit by a study of what has been done to achieve that record. Where one mineral is produced by other large groups having methods of mining that are similar in many respects to the anthracite-mining methods, an achievement in such a large industry is important. Salient factors concerned with safetye in the anthracite industry are: no radical change has occurred in the mining-safety regulations pertaining to anthracite mines. Because anthracite mining is a branch of the coal-mining industry,

Jan 1, 1950

By C. Richard Tinsley

INTRODUCTION Project financing has been defined by various authors in this book. It is founded on reliance upon the project's own future cash flows and secondarily on the collateral value of the asset base developed. It is chiefly provided by the banking community who, after an assessment of the risks involved (See Chapter 9) analyse the company's presentation (See Chapter 10) in order to structure a financing package often at a leverage of up to 80% debt. This paper describes the various support and structuring techniques used to delimit and abate the risk components perceived from the banks' experience on project development especially for the period before cash flow is generated (pre completion). ADVANTAGES The advantages of project financing extend beyond the offloading of risks to banks. Among the advantages are the following: 1. Longer loan maturity than conventional, unsecured financing; 2. Loan disbursement and repayment tailored to specific mine; 3. Ability of a joint venture without a "track record" to raise financing; 4. Obtain financing where further direct borrowing (corporate credit) limited by existing indentures; 5. Possibility of arranging finance off-balance sheets; 6. Leverage return on equity; 7. Obtain tax savings with certain project financing structures; and 8. Obtain flexible loan repayment conditions. It can also be said that from the point of view of the company, project financing has certain disadvantages which can be summarised as follows: 1. Perceived higher cost (risk premium) compared with straight corporate credit; 2. More documentation; and 3. Need to negotiate risk-sharing aspects. The main attraction of project financing is the ability to pass certain risks on to the lenders within a flexibly funded transaction. (For a more detailed description of the specific risks see the author's paper at the beginning of Chapter 9. The same risk system is followed here.) The typical project financing has corporate support prior to completion and will usually carefully control the resultant cashflow after completion to ensure the bank does not unnecessarily assume further risks of an equity nature. WITHIN THE COMPANY'S CONTROL Operating Risk This is broken into three interrelated segments for ease of description. Technical Component: This must be specifically addressed if new technology or unproven adaptations are to be used. The banks will have scrutinized the sampling and bulk testing work, perhaps grilling the geological, mineral processing, metallurgical, and mining engineering staff or consultants directly. A number of supports are available such as: TECHNOLOGY GUARANTEE: Either the company itself or the process developer will guarantee that the technology will work for a period of, say, six months to two years after startup. If not, then financial penalties will apply although these are rarely sufficient to repay the loan. Many process developers are weak financially and may have little substance to back such a guarantee.

Jan 1, 1985

By Richard W. Smith

Why are we losing our liberties? (1) . . . because our local chambers of commerce come to the National Chamber's annual meeting, vote for a policy on federal economy, and then go to Capitol Hill and ask for a federal project for their area. (2) ... because our mining men ask for a subsidy to mine submarginal deposits that can't be economically mined in a free economy. (3) . . . because 18,000 men and organizations all over the country recently wired or wrote a Congressional committee asking that the Army Engineers be exempt from the President's power to reorganize the Executive Branch of the government under the recommendations of the Hoover Commission.

Jan 1, 1949

By Oliver Bowles

STRIKING new developments in the field of industrial minerals include the employment of lime, salt, coal, and air for the manufacture of stockings, and the substitution of paper for granite and marble in making tombstones. Certain minerals that have heretofore been regarded as valueless except as museum or laboratory specimens, are now being applied commercially. Serpentine, in forms neither fibrous nor ornamental, massive topaz, pinite, and zoisite are examples. For certain other minerals, notably pyrophyllite, bentonite, vermiculite, and sulphur, extension of established uses into new fields has occurred. Substitution takes a toll in many industries, but producers of industrial minerals as a class have gained more than they have lost in recent years. Encouraging progress has been made in developing at long last a suitable substitute for certain of the uses of mica, the only industrial mineral on the strategic list of commodities established by the War. and Navy Munitions Board. Some of the more important developments in process, equipment, and use .that have come

Jan 1, 1940

By D. F. Coolbaugh

Successful mine exploration requires sound planning and modern exploration techniques, but it also requires perseverance and the right timing. The La Caridad mineral area has been known for over 70 years, but as with many mines, it was not "discovered" until viewed under new economic conditions and exploration philosophies. Present exploration of the La Caridad area began in 1964 and was carried out under a joint Mexican Government-United Nations Project. Detailed exploration was begun by Asarco Mexicana S.A. in late 1968. The geology of the La Caridad deposits conforms, generally, to the "porphyry copper" deposits of Arizona. However, breccias and pegmatites play a very important part in the emplacement of mineralization.

Jan 1, 1972

By T. Sterry Hunt

THERE are about sixty bodies which chemists call elements ; the simplest forms of matter which they have been able to extract from the rocky crust of our earth, its waters, and its atmosphere. These substances are distributed in very unequal quantities, and in very different manners. As regards the frequency of these elements in nature, neglecting for the present those which constitute air and water, and confining ourselves to the solid matters of the earth's crust, there are a few which are exceedingly abundant, making up nine-tenths, if not ninety-five hundredths, of the rocks so far as known to us. The elements of which silica, alumina, lime, magnesia, potash, and soda are oxides, are very common, and occur almost everywhere. There are others which are much rarer, being found in comparatively small quantities. Many of these rarer elements are, however, of great importance in the economy of nature. Such are the common metals and other substances used in the arts, which occur in nature in quantities relatively very minute, but which have been collected by various agencies, and thus made available for the wants of man. It is chiefly of the well-known metals, iron, copper, silver, and gold, that I propose to speak to-night ; but there are two other elements not classed among the metals, which I shall notice for the reason that their history is extremely important, and will, moreover, enable , us to comprehend more clearly some points in that of the metals themselves. I speak of phosphorus and iodine. You all know the essential part which the former of these, com-

By L. R. van Wert

CAREFUL research into the nature of the metallic state has yet to discover, with any certainty, its essential quality. We do riot yet know, for sure, what it is that makes the metallic elements different from, if not actually unique among, all created things. We do know, of course, that metals have certain more or less characteristic properties-they are hard, strong, and tough, and good conductors of heat and electricity, and these so-called metallic properties provide a definition of a sort. How- ever, it is the structure rather than the behavior of the metals which gives the really fundamental information necessary to the understanding of metallicity. But this information is not easily obtained. Nature has a way of keeping secrets. But happily we do possess some knowledge of how a metal is built up, and it is this matter, rather than the presentation of a formal definition, that will be discussed here.

Jan 1, 1937

By Simon D. Strauss

What are future prospects for U.S. mining? In many quarters the assumption is made that this country has passed its zenith as a mineral producer -- that it is in a period of decline and that it is becoming a have-not nation like Japan and much of Western Europe. These industrial rivals of ours must depend almost entirely on others for their mineral supplies. In trying to answer this question one must of course distinguish between resources and productive capacity. In today's volatile and competitive markets, the definition of what are reserves and what are merely identified resources becomes ever more difficult. Many large deposits have been found that are unlikely to be viable in the marketplace under normal conditions but that can be of significance to the nation's military and industrial security in times of emergency. I should like to draw on personal experience from World War I1 for illustration. 4fter Pearl Harbor great concern developed over the availability of a long 1ist of strategic materials for which this country was largely dependent on imports. Included were a number of minerals of which domestic deposits had been identified. Among these were chromite, manganese ore, mercury, mica and tungsten.

Jan 1, 1982

By W. W. Duecker

SULPHUR is a peculiar combination of a nuisance and a useful element. Most of the nonferrous metallic ores contain large amounts of it in the form of sulphides, which the metallurgist has wasted up the chimney, since the sulphur dioxide formed is generally too dilute to make recovery economical and practical. Iron ore does not contain much of the unwanted sulphur; in pig iron and coke it is most unwelcome. Gold metallurgists can get along nicely without sulphides in their cyanide plants and yet they find matte-a sulphur compound -an excellent collector for gold and silver in base-metal smelting. Also, sulphur appears in the non-metallics as in barite, gypsum, Glauber's salt, and celestite, all to useful purpose.

Jan 1, 1938

By Norman Weiss

The need for more efficient utilization of labor in the metal-mining industry has been the subject of several recent editorials in the mining press, and one attractive possibility for such improvement lies in the designing of future milling plants particularly with economy of manpower in mind. We are accustomed to think of mill design as the selection and coordinated arrangement of process equipment, but if labor is to be efficiently utilized it must be given early consideration in planning the new mill. There are three good reasons for economizing in labor: (I) to reduce costs, not only in the form of wages but also in housing, hospital, welfare, and other obligations that a company accepts when a new man is added to the payroll; (2) to prepare for recurrent periods of manpower shortage, during which a well-designed plant can manage to get along with skeleton crews; (3) because a milling plant that must depend upon an inordinately large labor force for its operation and maintenance is certain to be inefficient in other respects, for many of the shortcomings in design that make necessary the excessive use of labor are generally not corrected merely by having too many men. A simple example of this is a poorly designed ore-feeding system : if this is inadequate to the extent that one man must be constantly unclogging feed chutes, it may help the situation to put two men or three at this task instead of one, but the feed rate will still be inconstant. First of the factors that affect labor saving is the location of the mill. This is often determined by transportation costs alone, and as a result the mill may be placed close to the mine regardless of the nature of the terrain. The designer must then adapt his layout to the conditions, favorable or not. This happens often at small properties, where capital investment may seem more important than operating expense. In most instances, however, a mill site carefully selected for the advantages it gives the designer in laying out the plant is the most economical in the long run, even if it involves a slight increase in cost of ore haulage. Given some freedom of choice, the design engineer may be able to find just the piece of ground that provides the proper gradient for the needs of the flowsheet, permits installation of essential yards and trackage, and perhaps supplies an excellent site for a tailing dam. Further justification for having placed the mill not too close to the mine sometimes emerges only years later as an opportunity to treat ores from other properties. When it is known from the beginning that the new mill will serve a number of scattered mines, a free choice of mill site is naturally stimulated. The most important single factor in limiting the labor requirements of a mill is its materials-handling system for bring-

Jan 1, 1947

By Norman Weiss

The need for more efficient utilization of labor in the metal-mining industry has been the subject of several recent editorials in the mining press, and one attractive possibility for such improvement lies in the designing of future milling plants particularly with economy of manpower in mind. We are accustomed to think of mill design as the selection and coordinated arrangement of process equipment, but if labor is to be efficiently utilized it must be given early consideration in planning the new mill. There are three good reasons for economizing in labor: (I) to reduce costs, not only in the form of wages but also in housing, hospital, welfare, and other obligations that a company accepts when a new man is added to the payroll; (2) to prepare for recurrent periods of manpower shortage, during which a well-designed plant can manage to get along with skeleton crews; (3) because a milling plant that must depend upon an inordinately large labor force for its operation and maintenance is certain to be inefficient in other respects, for many of the shortcomings in design that make necessary the excessive use of labor are generally not corrected merely by having too many men. A simple example of this is a poorly designed ore-feeding system : if this is inadequate to the extent that one man must be constantly unclogging feed chutes, it may help the situation to put two men or three at this task instead of one, but the feed rate will still be inconstant. First of the factors that affect labor saving is the location of the mill. This is often determined by transportation costs alone, and as a result the mill may be placed close to the mine regardless of the nature of the terrain. The designer must then adapt his layout to the conditions, favorable or not. This happens often at small properties, where capital investment may seem more important than operating expense. In most instances, however, a mill site carefully selected for the advantages it gives the designer in laying out the plant is the most economical in the long run, even if it involves a slight increase in cost of ore haulage. Given some freedom of choice, the design engineer may be able to find just the piece of ground that provides the proper gradient for the needs of the flowsheet, permits installation of essential yards and trackage, and perhaps supplies an excellent site for a tailing dam. Further justification for having placed the mill not too close to the mine sometimes emerges only years later as an opportunity to treat ores from other properties. When it is known from the beginning that the new mill will serve a number of scattered mines, a free choice of mill site is naturally stimulated. The most important single factor in limiting the labor requirements of a mill is its materials-handling system for bring-

Jan 1, 1947

By A. L. Baxley

An Untapped Energy Resource As much as 20 billion cubic feet of natural gas per day are flared from remote oil fields for lack of a commercially viable means of capturing, transporting, and marketing such gas. The magnitude of these gas flares can be put into perspective from an early satellite photograph (Fig. 1) which shows lights from the major cities of Russia and Eastern Europe dwarfed by the natural gas being flared in the Persian Gulf. Together, these wasted resources contain the energy equivalent of about one-half of the gasoline consumption in the United States today (Fig. 2). Additional trillions of cubic feet of natural gas are "shut-in" because of no economically viable means of commercial recovery. Methanol and liquified natural gas (LNG) are the only two practical fuel products which can be produced economically from these gas supplies. Many of these gas supplies are less than 500 million cubic feet of gas per day, making an LNG facility uneconomic. In contrast, barge-mounted methanol plants can economically convert billions of cubic feet of gas per day into safe, clean-burning methanol. The methanol approach offers the only economical route to transform vast, known reserves of natural gas into a highly versatile primary liquid fuel. Methanol Barges: An Innovative Solution The barges will be towed to suitable offshore and upriver locations such as Alaska, South America, Africa, Southeast Asia, Australia, New Zealand, and the South Pacific Islands, as well as fields in the Persian Gulf and Mediterranean Sea. At the offshore production site, a barge will be anchored by a single point mooring buoy that will also serve as an entry point for natural gas feedstock and an offloading point for methanol (Fig. 3). At some sites the barge would be beached. Each barge will produce methanol and store it in internal tanks with a capacity of 18 million gallons. The methanol will be offloaded into conventional tankers and safely transported directly to market. Unlike LNG, methanol requires neither specially built carriers nor specially built receiving terminals. Once a particular gas field has been exhausted, the barge will be towed to another location to continue production. Each barge will measure 320 by 500 ft, approximately the size of four football fields, and will have the capacity to produce 1 million gallons or 2800 metric tons of methanol per day, from approximately 100 million cubic feet of natural gas per day (Fig. 4). The barges will use the highly successful "low- pressure" design developed by the Lurgi Company of Germany, a process proven in land-based methanol plants throughout the world during the last ten years. The decision to use Lurgi technology for "sea-trans- portable" methanol plants was based on the higher efficiency and greater operability of the technology compared to other commercially proven processes. The conversion plant will be designed to accept a wide variety of feed gas compositions, and will produce chemical-grade methanol for the broadest market base (Fig. 5). To minimize costs and construction time, the barge-mounted plants will be built in the high technology environment of a domestic or foreign shipyard. Selection of the construction site for each barge will be dictated by the location of the production site and by the relative construction costs. A number of shipyards have the capacity to build several barges per year. The detailed marine engineering to integrate the design of the processing plant with the floating platform can be performed by numerous major engineering companies around the world. Production Economics The barge-mounted plant concept not only assures large volumes of methanol, but it also keeps the overall production cost low by minimizing construction cost and providing access to low cost natural gas feedstock with no alternative or a negative value. Together, these advantages make the barge-mounted methanol plants economical today. The cost structure of a new barge-mounted methanol plant differs from that of existing methanol producers around the world (Fig. 6). For example, if a U.S. Gulf Coast producer is paying $4.70/MMBtu in 1985 for natural gas, the barge plant could afford to pay about $1.6O/MMBtu for gas and be able to deliver methanol to the Gulf Coast at the same price. At some future date such as 1990, a gas cost of $6.70/MMBtu for a domestic producer would have cost parity with about $3.60/MMBtu gas cost for the barge plant. In many foreign markets, feedstocks other than natural gas are used for methanol production (Fig. 7). For example, most of Japan's capacity is based on LNG while Western Europe uses residual oil or naptha. Because these feedstocks are substantially more ex- pensive than natural gas used by U.S. producers, the barge plants will compete even more favorably in these foreign markets. As crude oil prices rise, the value of methanol in each of these markets will increase. However, the hierarchy of methanol values in these markets should remain unchanged. Furthermore, the cost advantage for using methanol in these markets will improve as world energy costs increase since the value of remote gas should not escalate significantly.

Jan 1, 1982

By Joseph Daniels

IN connection with a study of the feasibility of establishing a blast-furnace industry in the Puget Sound region of Washington, possible sources of ore supplies along the Pacific rim were investigated. Many of the South American countries are known to contain important resources of iron, particularly Brazil and Chile. This latter country, because of its position on the west coast and the easy accessibility of its de- posits, appeared to be a logical place to consider as a potential supply for the Pacific Northwest. Accordingly, a brief field study was made of the deposits in September, 1924. Attention was confined to a limited number of properties on the west coast in the provinces of Antofagasta, Atacama, and Coquimbo. Passing consideration was given to the question of coal resources, and a short visit was made to a blast-funace plant at Corral in southern Chile which had been operated for a limited period as a producer of pig iron. In the following paper, a brief outline is given of the general observations made and of the salient facts rioted in the time available for the general study.

Jan 1, 1926