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By Gary B. Glass

Seventeen percent of US coal production now comes from the 19 surface coal mines in the Powder River Basin of northeastern Wyoming. The Powder River Coalfield, which coincides with this topographic and structural basin, is unique to the conterminous US, in that it contains an estimated 934.4 Gt (1.03 trillion st) of in-place coal resources. At least 13.2 Gt (14.6 billion st) is a compliant, strippable reserve base. In 1993, an estimated 162 Mt (179 million st), or 98% of the coal mined in this Wyoming coalfield, came from the thick - average 30.5 m (100 ft) - subbituminous, Wyodak coalbed, or from the Anderson and Canyon coals in the one mine where the Wyodak is split into two separate coalbeds. The other 2.7 Mt (3 million st) of coal mined in the Powder River Basin in 1993 came from the School, Badger, Monarch and Deitz No. 3 coalbeds. In this "world class" coalfield, there are at least 13 other persistent, 3 to 15 m (10 to 50 ft) thick, coalbeds as well as the Big George and Lake De Smet coalbeds, which are each 61 m (200 ft) or more thick in places. None of these latter 13 coals are mined at this time.

Jan 1, 1994

By C. Guria

A modeling, simulation and optimization study of a complex industrial fluorspar beneficiation plant (Kadipani, Gujarat, India) with fourteen/ten flotation banks is carried out to find an optimum/near-optimum circuit for the given quality of feed ore. The phenomenological flotation model developed by Mehrotra and Kapur (1974) is used for circuit optimization. Two different optimization problems are formulated and solved. The first optimization problem involves a single objective function, which uses available plant data to estimate the feed-characterizing parameters, i.e., the flotation rate constants, by minimizing the weighted sum-of-square errors between the computed and plant values. The second optimization problem involves two objective functions to obtain several simplified circuits. The number of non-linking streams and the overall recovery of the concentrate, i.e., the acid-grade product, are maximized simultaneously in this problem. The single-objective variant (SGA-II-mJG) of the binary-coded elitist non-dominated sorting genetic algorithm with the jumping gene adaptation, NSGA-II-mJG, is used for the first problem, while NAGA-II-mJG (Guria et al., 2005 a) is used for the second problem. Simplified circuits with a few split streams are proposed on the basis of the present optimization study, which enhance the recovery of the acid-grade product without affecting its quality, for a given total volume of the flotation cell-bank. Even though the optimal solutions have certain drawbacks, they suggest a meaningful direction in using an iterative fitting of parameters to such optimal circuits, followed by re-optimization. Key words: Froth flotation, Mineral processing, Industrial fluorspar beneficiation, Feed identification, Circuit/network optimization, Global optimal, Jumping gene, Genetic algorithm, Multi-objective optimization

Jan 1, 2009

By D. J. Pandelis, W. J. Schlittler

Auxiliary Equipment pumping systems to support primary, secondary and regrind grinding circuits will be the primary focus of this paper. Every grinding system is unique and requires special design considerations for proper application of pumps to transport mill discharge. To satisfy the majority of applications, a new series of pumps has been developed by Svedala, known as World Class Pumps. Selection of these newly developed pumps for each type of grinding circuit will be presented. Specific components of selection are materials of construction, piping system, classification method, material characteristics and slurry characteristics. Both horizontal and vertical pump applications will be reviewed with emphasis on rules of pump piping and sump design.

Jan 1, 1999

By T. J. Batchler, K. M. Mohamed, D. F. Gearhart, R. K. Zipf

Seals are explosion-resistant structures built in underground coal mines to isolate abandoned mining areas from the active workings. An equivalent single degree of freedom (SDOF) method such as the single-degree-of-freedom blast effects design spreadsheet (SBEDS) developed by the U.S. Army Corps of Engineers can be used to design seals to resist mine explosions. The critical input for the SDOF code is the seal resistance function. The objective for this study is to develop engineering data for design of plain concrete (PC) and reinforced concrete (RC) seals using finite element (FE) models. The FE models can then be used to generate resistance functions for different PC and RC seal designs, which can be used in the SDOF codes. The U.S. National Institute for Occupational Safety and Health (NIOSH) researchers designed and built a test fixture for use in conjunction with NIOSH’s Mine Roof Simulator to apply a four-point bending load on the face of the tested seal. Eight large-scale experiments for each PC and RC seal were conducted. The experimental design considered the effects of the foundation strength, hitching and roof-to-floor convergence. Calibrated FE models for PC and RC seals were developed using ANSYS Ver. 13. With a very limited number of engineering-based assumptions and a single set of data—including Young’s modulus, compressive strength, stress-strain relationships, etc.—the PC and RC seal models successfully calculated the recorded resistance functions and failure patterns for a wide range of boundary conditions. Plug and RC seals were assumed for a 1.83-m- (6-ft-) high entry to demonstrate the application of the calibrated finite element models for calculating the resistance functions of these seals. The resistance function of a particular plug seal case was found to be a bilinear relationship. The resistance function of a particular RC seal without shear reinforcement was found to be a nonlinear relationship.

Jan 1, 2013

By D. Komljenovic, V. Kecojevic

Selection of the best possible truck type (model) is of crucial importance for the mine decision-makers. In this paper, authors contribute to the body of knowledge by developing a novel methodology for the selection of mining truck. Both the Coefficient of Technical Level (CTL) and Analytic Hierarchy Process (AHP) methods were used in this study. The CTL represents a mathematical function which takes into consideration the interrelations among the main technical parameters of mining trucks. The authors developed a hierarchical structure where both attribute categories and their importance, i.e. priority or weight in the selection process were determined. For each category, a number of sub-attributes and their priorities were assigned, and a pairwise comparison among them was performed using the AHP method. In the final part of the study, the CTL was integrated into the AHP and represents a holistic approach in the selection of mining trucks. A case study on 180 tonnes truck category offered by five manufacturers was carried out. A sensitivity study of obtained results was also performed indicating a very stable solution. The methodology presented in this paper may be used by mining operators to help in the selection of a specific type when acquiring a new truck. It may also be used by equipment manufacturers to help in analysis of potential benefits of envisaged modifications concerning an existing truck type and/or development of a new type.

Jan 1, 2007

By G. Le Bel

The paper proposes three methods to determine optimum lifetime of a mining project1. The conclusion is that the three methods arrive at the same optimum production rate (by coincidence). It is also stated that: "The stochastic and option pricing models, in addition to providing a more realistic optimum mine life than the traditional NPV (net present value) calculation, showed that the example project has the potential for substantially higher return. By explicitly considering a project's potential risks, the stochastic or option pricing techniques can more accurately describe its probable investment performance." This discussion is intended to demonstrate that: • It is no coincidence that the three methods arrive at the same optimum production rate. • The stochastic and option pricing models do not provide a more realistic optimum mine life than the traditional NPV calculation. • The potential for a substantially higher return is misrepresented. First, a review of investment decision theory in mining is needed. Net present value is the preferred performance measure because of the flexibility offered when comparing various alternatives. However, it presents the following disadvantages: • The discount rate selection is not straightforward. • The NPV obtained represents a deterministic characterization of the variables included in the cash flow calculations, i.e. a single-point estimate.

Jan 1, 1993

By William L. Young

There is an old saying in Canada: "Mines are made as much as discovered." What follows is Young's perception of his experience developing and financing the Cochrane Hill gold mine project. In 1974, I came back from rutile and zircon exploration and mining in Australia. I became interested in a copper, lead, and zinc project in the Bathurst District, New Brunswick. Much field work had already been done but I was convinced that a reinterpretation of the geophysical work left room to enlarge on the known mineralization. So, with my own money I put a property deal together, found an underwriter willing to raise $100,000, and had a lawyer produce a prospectus. The prospectus was ultimately accepted for filing by the Ontario Securities Commission and I acquired funding and began work. It did not take many drill holes to determine that the interpretation was not geologically valid. However, while drilling was going on, geophysical and geochemical explorations indicated interesting anomalous zones elsewhere on the property. But by now the base metal market climate had soured and the $50,000 I had left was not enough to evaluate the new results. So I decided to farm out the property. A data folio was produced and the property was optioned to a major mining company, with Northumberland Mines Ltd. retaining a 20% free, carried interest. By 1976, the market for junior issues was so bad no under¬writer would even talk to a geologist and I still had the $50,000 in the bank and was looking for something to initiate. A Project That Went Nowhere Market research indicated that the Toronto area imported fine calcium carbonate fillers from Georgia, Alabama, and Vermont. I was aware of the specs and the fact that there is a large marble belt in Eastern Ontario. After some prospecting, I found an interesting deposit. The product was slightly high in silica and low on brightness. Research work eliminated the silica and corrected the brightness. So, with insufficient money we launched a feasibility study. This included diamond drilling, bulk sampling, special fine grinding and air classification tests, and an in-depth market survey. Our product was as good or better than those on the market. Our advantage was that delivery could be made by a two-hour truck haul to the customer. The present system of rail delivery had many problems, especially in winter. Despite everything looking rosy, we ran into a stone wall. The underwriters were singularly unimpressed because the public saw little glamour in a substance most people had never heard of. The issue would have been difficult-if not impossible-to sell. Banks and government agencies took the position that if we could get long term take-or-pay contracts then they would lend the required capital. None of the suppliers, however, would even consider a contract until production had begun and they could evaluate the production material. It was a classic "catch 22" situation. I have gone into this in some detail to show how tough the industrial mineral market can be. We eventually optioned this calcium carbonate property to a major corporation. The option agreement would give us a free, carried 15% and the right to buy up to 40% for contributing 25% of the production costs. But the experience left my company in poor financial shape. To survive, I think the entrepreneur-geologist must always have at least one project in reserve, an emergency plan. I had been searching out a new project to work on, after the calcium carbonate option was wrapped up. It was gold. Gold intrigued me and I knew quite a bit about Nova Scotian gold. I felt that with any rise in price, many of the former high-grade gold mines would have interesting potential for the larger, low grade portions of the deposits. That is how I happened on Cochrane Hill, where much work had been done in the early 1970s when gold as $4.82/g ($150/ oz). This time my timing was good. No sooner had Northumberland signed an option agreement than gold prices started to rise. In six months, they went to $27.331g ($850/oz). Even so, financing gold prospects in early 1980 was still not easy. It had been years since gold financing had been undertaken. A whole new generation of investors, with no knowledge of gold mining, had grown up. So, with accounting and legal council, we decided on a semiprivate "seed money" offering. Under the new Ontario Securities Act, this was a new-and partly tax sheltered-concept. At the time, it was very innovative.

Jan 6, 1982

By Thomas C. Shapiro

Introduction In recent years - even months - the number of articles on computers has increased rapidly. One can hardly pick up a newspaper or magazine without seeing a computer-related article. The article usually explains how the computer will change our lives. Many of us have some concern about the nature and type of change. For most of us, though, the problem is lack of information and understanding about how computers work. In other words, how do we make cost-effective decisions about computers? This three-part series will explain, simply, what a microcomputer is, how it works, and how to decide if you need one. This first article will define terms and briefly discuss areas where computerization might be economic. The second article will discuss geology and mining applications. The third article will discuss plant, administrative, and geotechnical areas as well as the future of software development in the minerals industry. Terms and Concepts All computers have input and output devices and a central processing unit (CPU). Information - instructions and data - is communicated to the computer by means of input devices. These instructions to the computer are converted into language that the computer understands. This causes the instructions to be carried out in the CPU. The result of these operations is translated back into language that we understand. This information is then sent to output devices such as printers and video display tubes. Traditionally, peripherals were devices separate from the main-frame (the CPU and memory) and were used to input, output, and store information or instructions. Today, peripherals perform the same functions though they may be housed in the same cabinet as the CPU and memory. Historically, peripherals included all input and output devices not part of the mainframe. Input devices include keyboards, magnetic tape, and card readers. Tapes and disks are input as well as output devices. Output devices are printers, CRTs (Cathode Ray Tubes), and any mass storage device capable of storing data when directed to do so by the computer or the program. In fact, any mass storage device that can give the computer data when requested is an input device. Mass storage devices include floppy disks (thin, round sheets of plastic covered by metal particles), and hard disks. The latter are thicker and more densely coated with metal particles. This allows much more information to be stored. Another type of mass storage is magnetic tape. Its type and size varies widely. Processing and Storage Any computer understanding must include how instructions and data are processed and stored. Information is stored as a positive or a negative field known as a "bit." There are eight bits in a byte. The bits can be represented as either a one or a zero. Thus the code for a byte representing the numeral one is 00110001. The byte representing the letter A is 01000001. These codes are from the American Standard Code for Information Interchange (ASCII). ASCII defines the standard set of characters including alpha, numeric, and special characters. The computer's memory has allocated locations where instructions as well as incoming information can be stored. All information and instructions are stored as binary numbers bit by bit - zeros and ones. The amount of data that can be stored is referred to as either thousands or millions of bits or bytes. The letter "K" is used to designate one thousand units. The letter "M" is used to mean one millon units (one meg). Disks Thus, a 113-mm (5 1/4-in.) floppy disk - double sided and double density (DSDD) - contains 320,000 bytes (characters) or 320K. This is about 164 double-spaced, type-

Jan 2, 1984

By Hans Janzon, Ernst Buechi

INTRODUCTION The headrace tunnel in Amlach is part of a hydro electric power scheme near the city of Lienz in south west Austria. The project is owned and developed by Tiroler Wasserkraftwerke AG, the regional electrical supply utility. The construction work was divided into seven contracts for the entire scheme. The power output will be 60 MW, this being developed from a head of 370 m and water flows of 20 m3/s. The water will be tapped from the river Drau and lead through a 22 km long headrace on the south side of the Puster valley through the Lienzer Dolomiten mountain range. Contract No. 4, which is a joint venture between Mayreder, Züblin, Strabag, Rella and Innerebner, involves the construction of 13.5 km of the headrace. It was decided to bore this from one single adit, which probably makes it the longest pressure tunnel driven from one side by a TBM. (See Fig. 1.) For the tunnelling an Atlas Copco Jarva MK 12 TBM was chosen. The excavation diameter is 3.90 m, with the final lined diameter being in the range of 3.20 to 3.40 m. The back-up is a 145 m long single track rail system supplied by Mühlhäuser (Germany). Side-tipping cars with a capacity each of 8.2 m were used for removing the muck. One California switch was attached to the back-up after 3,000 m, and a second fixed switch was installed after 8,000 m of boring. 3 m long

Jan 1, 1987

By T. McCallum

Crud is a common concern in SX processes and is formed as a complex solid stabilized emulsion of aqueous and organic.1,3 Crud formation is highly dependent on the amount of solids entering the circuit and is influenced by a number of other operational factors. A common practice for crud processing is interfacial pumping, wherein crud, organic, and aqueous are pumped from the settlers for treatment and utilizes a variety of equipment. These mechanical means of crud processing are effective, however, require significant processing time and require oversight to prevent the return of contaminated organic. Cytec has developed a unique crud treatment process utilizing both chemical and mechanical means to enhance the solid/liquid separation. The use of ACORGA CB? 1000 crud busting reagent allows a rapid separation of solids from the organic phase and provides similar volume recovery to current practices. The process allows operations to return clean organic back to the plant more efficiently and may enable operations to process more crud. In addition, the organic quality of the recovered organic is higher than that recovered by typical means, which can lead to operational cost savings.

Feb 27, 2013

By Scott G. Britton

Microcomputeranalysis has long been a technique for engineering professionals to improve the theoretical and practical design of continuous mining systems. Such work has been typically composed of modeling observed events and then introducing a variety of known elements with predicted results to compare against the results of the model. Programs written in BASIC, Cobol, Fortran or other language dominated such efforts. These programs have taken years to develop and prove out. This article explores a new management tool used daily at Tanoma Mining Co. (TMC) to track and improve continuous mining systems through the use of microcomputers and Lotus l-2-3 software. Data provided by section foreman, shift foreman, and maintenance personnel are analyzed against predetermined goals. In this way, new production targets are developed, weaknesses in the current mining systems are identified, and the results of changes are measured. The current results of this system on the productive output of TMC systems is on the order of 10% improvement. Thin seam coal mining is an industry within the broader industry of coal mining. Thin seam mining faces the same cost pressures and engineering problems as its higher-seam competitors without the advantages of moving volume per foot of extracted material to stay at an economic parity with others requires additional creativity within the management teams to extract higher productivity gains from the existing workforce and mining systems. TMC operates a deep mine in Indiana bounty, PA, about one hour northeast of Pittsburgh.

Jan 1, 1991

By Ian Farmer, Nigel Glossop, Philip Garritty

Performance of tunnel boring machines - usually expressed in terms of penetration per revolution - is determined by relations between machine thrust and torque, head diameter and rock strength. It can be shown that for a given machine power and head diameter there is only one rock strength at which the machine performs optimally. In weaker rocks the available torque limits performance and in stronger rocks, the available thrust. Performance data shows that, historically, machines have been designed to cut weaker rocks. Optimization of thrust is required to improve performance in stronger rocks.

Jan 1, 1987

By A. D. Davis

The former Homestake gold mine at Lead, South Dakota, has been selected by the National Science Foundation as the proposed host site for the Deep Underground Science and Engineering Laboratory. The deep laboratory and associated research campus will be developed at approximately the 7700-ft level. Plans also include the development of the Sanford Underground Science and Engineering Laboratory at the 4850-ft level. After the mine?s pumps were shut off in June, 2003, water levels rose to approximately the 4650-ft level by early 2008. Pumps in the 8150-ft deep mine were turned on again for dewatering in April, 2008. Instrumentation is being installed in the mine to measure water-level declines during pumping, for later analysis of permeability and related hydraulic properties of the formation. Pressure-sensitive transducers and data loggers will provide real-time information on water levels that will be available to interested parties. Quality of the water also will be monitored as it is pumped from the mine. I

Jan 1, 2009

By Daniel Brutto

"Environmental considerations are a key driver within marine mining consenting processes across different national and international legislative regimes and are critical in shaping the global public perception of the industry. As a result, it is vital that mining companies seeking to operate within marine environments establish a robust understanding of the sensitivities of the seabed environments in which they are active, the impacts of their activities and the ability of the environment to recover from these impacts. The significant risks of failing to do so include an inability to either obtain or maintain operating permits. At the individual project level, the environmental effects of any given development project are typically defined within the scope of an Environmental Impact Assessment (EIA). For well-established industries operating in well-studied environments this approach typically works well. However, where emerging industries or existing industries that are operating within new environments are concerned, there may be significant knowledge gaps pertaining to our understanding of how specific anthropogenic practices or activities interact with the marine environment. These knowledge gaps can cause significant uncertainties pertaining to the likely significant effects of a project. Such uncertainties may result in barriers to industry and economic progress, increased consenting risks, increased project costs to be borne by individual project developers through the acquisition of additional environmental data during the pre-consent or post-consent project phases, project delays and/or significant increases in environmental monitoring burdens with corresponding increases in project costs."

Sep 1, 2014

By S. Watkins, D. Apel, B. Gray, R. Moss

Currently, there are several techniques and technologies available which are used by mining industry in its attempts to remotely monitor the ground movements both at surface and underground mines. The currently available remote distance meters and distance change monitors mainly use phase change and time-of-flight techniques. The described monitor uses triangulation technique to track position of an optical spot projection and then image processing to measure mine wall movements. The system can be easily automated and poses no obstruction to mine traffic. The position of an off-normal laser spot will shift as the target wall moves. The described ground movement monitoring system has potential for superior accuracy and target monitoring can be made through air (gaseous) or other transparent media. The theoretical accuracy and range of this system depends solely on the resolution and focal length of the camera being used. The remote capabilities of the system make it uniquely suited to applications where monitoring is required in high-traffic, inaccessible, or unstable and dangerous areas of a mine.

Jan 1, 2007

By R. C. Bratton, R. Q. Honaker

Hindered-bed separators are recognized as low-cost, high-capacity devices for both classification and density separation; however, since their inception, there have been few significant advances in the fundamental technology. Recently, Eriez has shown through modeling and pilot-scale testing that the innovative approach to feed presentation offered in the CrossFlow teeter-bed separator provides improved metallurgy when compared to traditional hindered-bed classifiers or single-stage coal spirals. This design feature prevents excess water from entering the separation chamber and disrupting the overall fluidization flow rate within the teeter zone. Most recently, a side-by-side industrial scale evaluation has verified that this technology improves overall efficiency and simultaneously reduces the separation cut-point. With regards to coal processing, data from full-scale units indicate that the CrossFlow offers good separation efficiency, high unit capacity, and metallurgical results consistent with laboratory- and pilot-scale separators.

Jan 1, 2006

By Glen Frank, David R. Chapman

Determining the number of boulders and cobbles that will be encountered in the tunnel envelope is one of the most difficult problems confronting the geotechnical engineer in the design of tunnels in glacial terrain. This issue is very important to the contractor, both in determining what methods will be used to construct the facilities and the advance rate that can be achieved for the chosen construction methods. The cost of constructing tunnels by pressurized face tunneling techniques is very sensitive to accurate characterization of the very coarse fraction (large cobble and boulder sized clasts), and no standard method is current available for characterizing boulders and cobbles. Careful use of large diameter borings and the sampling and analytical techniques outlined in this paper can provide a means to answer this difficult question. By performing large diameter borings and carefully recording and sampling the cobbles and boulders encountered, an estimate for the amount of these materials present in the formations sampled can be provided. Using this method allows the designer to communicate the expected geologic conditions to the prospective bidders in a manner that is both definitive and defensible. This paper describes the method as it was used in conjunction with the design of a large diameter sewer tunnel in the Columbus, Ohio area.

Jan 1, 2005

By J. F. Lupo

There are numerous mines throughout the world that have open pit highwalls developed partially or wholly in soil or soil-like materials. Soil-like materials are considered to include soils (either transported or residual) and highly weathered rock, which may have soil-like behavior. These materials generally have characteristics or material properties that vary considerably from those of moderately weathered or fresh rock. Given these differences, it is important to consider the characteristics of soil-like materials to design safe open pit slopes. In the design of open pit slopes in soil-like materials, it is important to recognize the behavior of these materials is strongly dependent upon their mineralogy, degree of weathering, cementation, stress history, depositional history, and presence of water. As a result, soil-like materials may contain one or more of the following characteristics that can have a significant effect slope stability and design: - Relict structural features (joints, faults, etc), - Sensitivity to moisture (both wetting and drying), - Zones of alteration with variable strength and drainage characteristics, - Zones of low permeability creating perched ground water conditions, and - Undrained and drained strain softening or strain hardening behavior.

Jan 1, 2011

By G. E. d’Aquin

Sources of sulfur have varied based on technology and societal needs. It has been mined in its elemental form for centuries. Twentieth century technology brought thermal mining (Frasch, 1894) to the forefront of sulfur extraction. Then, by the 1980s, petroleum processing generated almost 40 percent of the 50 Mt (55million st) of sulfur in all forms (SAF) produced in the world. Metals processing (the reclamation of effluent gas by various means as “sulfur in other forms,” or SOF) followed at 30 percent of all sulfur values produced and then Frasch at 22 percent. Petroleum and gas processing now generate most of the elemental sulfur produced in the world. Single Two Frasch mines remain, one each in Iraq and Poland. Conventional mining of small to insignificant volumes also survives in Russia, Latin America and Indonesia. The volume of “recovered” sulfur (the name commonly given by the industry to hydrocarbon-derived material) generated will increase faster than energy consumption as oil and gas with greater amounts of sulfur are used and environmental restrictions on the sulfur content of the fuel consumed become more stringent.

Jan 1, 2005

By Frank W. Luerssen

Introduction "Austerity" is perhaps an overly generous description of the past three years in the American steel industry. Steel plants operated at an average of only 57% of their capability in 1982-84. The dismal losses for last year are still being totaled. But during the two years before this period, American steelmakers recorded an aggregate net loss of a staggering $6.8 billion. Steelmakers responded by closing numerous marginal facilities. And production capability was cut by 13.6 Mt (15 million st). Capital expenditures still averaged $2 billion annually. But this was inadequate to maintain the existing base of steelmaking facilities. The general economy experienced a satisfactory recovery during this period. American steel, however, continued to suffer from a lagging recovery in the capital goods sector. This was due to record penetration of its domestic market by imports and from very weak realizing prices on the volume that was available. In addition to the direct influx of offshore steel products - which itself depressed prices - the industry also became painfully aware of the growing importance of "indirect" imports. These came in the form of steel-containing producer and consumer durables. Industrial equipment and autos fabricated from foreign steel accounted for the equivalent of 6 Mt (6.5 million st) of lost market opportunity for domestic steel-makers last year. That is over and above the 23.5 Mt (26 million st) of direct steel imports. Given these factors, Inland Steel was not spared from the threeyear downpour of red ink. Despite its record of continuing modernization in steel, our single-plant location in the world's best steel-consuming market, and the high proportion of consumer durables related products, such as cold rolled and coated sheet in our mix, Inland suffered aggregate losses of $277 million during the 1982-84 period. Strategic Planning The foregoing establishes a perspective - a base from which we have restructured our view of the steel industry, and of our own role within that picture. Until possibly two years ago, this present weakness in steel demand was viewed around the world as an aberration, eventually to pass. By contrast, it is now recognized that austere times are the normal steel environment. The topic here is management of resources. This implies an emphasis on strategic planning. It is worthwhile to examine some of the more critical assumptions that were driving strategies among a number of steel companies just before the 1980s. Those projected characteristics of the future steel environment were arrived at through painstaking analysis. They were carefully and heavily quantified and were generally shared by outside observers and our peers within the steel industry. • First, the assumption was made that domestic steel demand would continue to grow at an average rate of 2% per year. • Second, it was assumed that this growth in the American market would continue to be filled predominantly by US mills. It was believed that increases in steel and steel-related demand overseas would absorb much of the ominously growing capacity of third

Jan 6, 1985