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By Jasper D. Ward

The Indiana Limestone Company has developed an insulated, thin and comparatively light-weight pane 1 suitable for use as a spandrel panel in a curtain wall. The panel is about four inches thick and is composed of limestone backed with insulation. The inner surface of the insulation is protected with asbestos-cement board or a metal pan, depending on the type of insulation, building-code requirements and appearance (if the surface is left exposed). The limestone is cut to the size of the spandrel openings and the insulation and backup is applied in the mill ready to be shipped and in- stalled in the wall grid, A mortarless and waterproof joint with the metal frame components is achieved through the use of neoprene, thiokol, and caulking, The limestone is "dirt-proofed" (waterproofed) in the mill to slow down discoloration. The panel weighs more than some presently used materials. However, ILCO's architects and engineers have found that curtain wall systems capable of withstanding imposed wind loads are made up of sections large enough to carry this extra load of stone with little or no modification to the size of the metal frame. Limestone, a traditionally sound material, can be used in this new way without losing any of its natural qualities of dimensional stability, resistance to fire, and permanence.

Jan 1, 1959

By Thomas P. Meloy

There is much interest in the automation of entire comminution circuits, At the present technological level it is possible to automate a circuit but to date it has not been done, To successfully automate a circuit, a number of problems must be solved. Not all of them are engineering problems. The purpose of this paper is to discuss some of these problems, as certain the implications of these problems and indicate solutions to them. In this paper the term "automation" is used loosely but in the popular sense. Namely, that a plant is automated if a computer is used to control the basic flow of the materials as well as setting the critical parameters in the process. Specifically, the discussion will concern itself with the control of comminution circuits from the dumping of the ore into the primary crusher until the final interface between the comminution circuit and say, the flotation mill in the case of a sulfide ore.

Jan 1, 1965

By O. A. Lima

Effective solids suspension is a necessary precondition for particle collection, and solids suspension is largely dependent on the hydrodynamics of the flotation cell. This study attempted to correlate the status of the suspension of apatite particles of different sizes in a Denver laboratory flotation cell versus the impeller rotational speed (N) adopted to operate the machine. The latter variable (N) influences the impeller capacity to lift the particles from the bottom of the tank and also to disperse them throughout the volume of the vessel. Such an impeller capacity can be characterized by the critical impeller speed for the accomplishment of solids off-bottom suspension (Nz) and also by the velocity of the radial water flow discharged by the impeller (U) divided by the particle terminal settling velocity (Us). This way, the status of the suspension of apatite particles inside the flotation cell can be characterized by one of three categories: ?segregation? (N/N2 < 0.60 and Us/U > 0.08); ?suspension? (0.60 = N/N2 < 1 and 0.06 < Us/U < 0.10); and ?dragging? (N/N2 = 1 and Us/U = 0.03). The range of impeller rotational speed (N), which was able to suspend the finest particles (Dp = 90 µm), was unable to suspend the coarsest particles (Dp = 254 µm). Conversely, the high value of N (N > 1,300 rpm), which is adequate to suspend the coarsest particles, may promote the entrainment of the finest particles to the froth layer.

Jan 1, 2009

By Alexander Sutulov

1. INTRODUCTION According to the classical economic approach of the open market economy, copper supply should be regulated by market forces which are (a) demand and (b) prices. In fact, demand is of primordial importance because prices are a reflection of supply-demand balance: they go up in times of shortages of supply and down when over-supply situation exists. In the past few years, this basic mechanism of market economy has been under pressure from a number of non-market forces, such as social and monetary problems of sane important copper producing countries; structural changes in copper mining companies through mergers with oil companies; and other factors which greatly contributed to distortion of the basic supply-¬demand equation. As a result, we have faced in the last three years a situation of oversupply rarely seen in the past, with a catastrophic fall in copper prices, huge losses at mines and unprecedented indebtedness of copper producers. This has deep repercussions in the copper business and its future supply outlook. This is particularly so when taking into consideration that high indebtedness and high interest rates conspire against the very survival of some traditional producers. As we write this comment (July of 1985), close to one half of U.S. copper production capacity is closed down, sane of it for good, while the same precarious situation exists in Canada, Australia, Zambia, and some other primary producers who cannot face present low prices with equally low costs. The question is then what this situation means for the medium-¬term future, until the end of this decade, Particularly when taking into consideration the fact that some of the factors influencing it are of a long-term character. 2. SUPPLY-DEMAND SITUATION IN THE LAST FIVE YEARS Since the last boon year, in 1979, when world copper consumption reached a record of 9.8 million metric tons of refined copper, demand dropped to only 9.0 million tons in 1982, when the crisis bottomed out, and then steadily recovered to the level of 9.7 million tons in 1984. Meanwhile, copper production, which in 1979 was only 9.4 million tons, in spite of the fall in demand, grew to 9.7 million tons in 1981 and 1983 and only temporarily was cut to 9.4 million tons in 1982 and to 9.5 million tons in 1984. As a result of this imbalance, hugh copper stocks were accumulated with supply systematically out¬growing demand by over 2 million tons at one time. With the Western World refined copper demand running at an average of 115,000 tons per week, this oversupply was equivalent to between 15 and 18 weeks production, i.e. twice as large as normal. This was immediately reflected in very low copper prices. Another contributing factor to relatively low copper prices was the lack of speculator interest for this commodity. Between 1981 and 1984 the world experienced a very intensive period of wealth distribution, high interest rates and intensive restructuring off world economy and its industrial sector. Therefore, much of the available money was attracted to more lucrative and attractive investments rather than to the lack-luster performance of copper, and for that matter, of the metal sector in general. The much announced and discussed recovery of the U.S. economy since 1983, and particularly in 1984, with an overall growth of the GNP by 6.8% in 1984, happened to be more oriented to the service sector than the industrial sector and therefore this recovery was not adequately reflected in copper consumption nor to metals in general. This put serious doubts about the future demand for copper. Consequently copper prices failed to improve in spite of an apparent fall in stocks and a healthy increase in the demand for copper since 1982. At the time of this writing (July, 1985), although same analysts claim that the available stocks are running at about 8 weeks of supply, which are considered to be below normal, copper prices are still very low at between 65 and 67 cents per pound of copper. Part of the answer may be the normal seasonal slow-down period in the Northern Hemisphere due to summer vacations and

Jan 1, 1986

By Diane Jones, Jeremy Spearman, Tom Matthewson

Requirements for minerals are on the increase globally and the deep sea offers a potential source of essential materials. Extracting these minerals from what is considered an environmentally sensitive area, and one about which little is still known, is a challenging activity, which needs careful consideration and an appropriate environmental impact assessment to be carried out. Extraction of material from the deep sea beds can cause disturbance or damage to benthic communities; impact on mobile marine species such as fish, mammals and reptiles; cause increases in suspended sediment and sediment deposition onto potentially sensitive areas or potentially release contaminants which were previously bound to the sediment. This paper discusses the potential environmental issues surrounding extraction of deep-sea deposits using aggregate dredging techniques and how those issues can be appropriately assessed. In particular issues of suspended sediments, plume transport, water and sediment quality and underwater noise impacts on potentially sensitive species and habitats will be explored.

Sep 1, 2014

By D. F. Lillie

The milling plant of Bicroft Uranium Mines Limited has been in operation for a period of 2 years. During this time many changes, both physical and chemical, have been made in an effort to improve plant efficiency. Investigational work has been facilitated greatly by the fact that the Bicroft mill consists to a large extent of two parallel circuits; however, the number of inter-related variables is great, and it is difficult to measure, let alone control, all of them simultaneously. The Bicroft mill staff feel that much progress has been made, but there is much yet to be done and many questions still to be answered. The property of Bicroft Uranium Mines is located in Cardiff Township in the Highlands of Haliburton County, southeastern Ontario, some 140 miles northeast of the city of Toronto and 70 miles due north of Lake Ontario. The ore-bearing dikes are classed as mafic, non-segregated, syenite and granite pegmatites. Microline, microline perthite, quartz, uraninite, uranotharite, fluorite, titanite, cyrolite, calcite, pyrite, pyrrhotite and molybdenite as important accessories. The mill was designed for a nominal capacity of 1,000 tpd with all sections except grinding, leaching and clarification capable of 1,500 tons. Feed was entered to one mill unit on October 29, 1956 and to the second parallel line on November 13. The total feed rate was at 1,000 tpd on November 15. The first precipitate was produced on November 12. By August 1958 the average entry had been increased to 1,410 tpd without the installation of any additional major equipment. The overall recovery has been greater than 93,0 pet do several months, but a recovery of 92.5 pct appears to be most economical. Operating time for 8 months in 1958 has been 97.1 pet although all grinding mills were relined during this period.

Jan 1, 1959

By P. T. Bissert, T. J. Lutz, J. A. Yonkey, G. T. Homce

"The U.S. National Institute for Occupational Safety and Health (NIOSH) has been researching refuge alternatives (RAs) since 2007. RAs typically have built-in pressure relief valves (PRVs) to prevent the unit from reaching unsafe pressures. The U.S. Mine Safety and Health Administration requires that these valves vent the chamber at a maximum pressure of 1.25 kPa (0.18 psi, 5.0 in. H2O), or as specified by the manufacturer, above mine atmospheric pressure in the RA. To facilitate PRV testing, an instrumented benchtop test fixture was developed using an off-the-shelf centrifugal blower and ductwork. Relief pressures and flow characteristics were measured for three units: (1) a modified polyvinyl chloride check valve, (2) an off-the-shelf brass/cast-iron butterfly check valve and (3) a commercially available valve that was designed specifically for one manufacturer’s steel prefabricated RAs and had been adapted for use in one mine operator’s built-in-place RA. PRVs used in tent-style RAs were not investigated. The units were tested with different modifications and configurations in order to check compliance with Title 30 Code of Federal Regulations, or 30 CFR, regulations. The commercially available relief valve did not meet the 30 CFR relief pressure specification but may meet the manufacturer’s specification. Alternative valve designs were modified to meet the 30 CFR relief pressure specification, but all valve designs will need further design research to examine survivability in the event of a 103 kPa (15.0 psi) impulse overpressure during a disaster. BackgroundThe Mine Improvement and New Emergency Response Act of 2006, known as the Miner Act (U.S. Department of Labor, 2006), was enacted in the wake of three mine accidents involving explosions or fire that claimed 19 lives that year. Intended to help improve underground coal mine accident preparedness, the Miner Act includes provisions that target mine safety issues in areas such as emergency response planning; adoption of new technology; training and education; and mine safety standards enforcement. Section 13 of the Miner Act specifically directed the U.S. National Institute for Occupational Safety and Health (NIOSH) to provide for research into the effectiveness and viability of refuge alternatives (RAs) for underground coal mines, and the U.S. Department of Labor to act on the results of such research, as appropriate. These mandates culminated in the 2009 adoption of changes to the Title 30 Code of Federal Regulations, or 30 CFR, mining health and safety regulations (U.S. Department of Labor, 2008), requiring underground coal mines to supply mine emergency RAs and associated components so as to provide a life-sustaining environment for persons trapped underground. Such RAs can be either selfcontained mobile units or built-in-place facilities. The regulatory changes also include provisions establishing requirements for the approval of RAs and their components by the U.S. Mine Safety and Health Administration (MSHA), among which are numerous criteria for providing a safe breathable atmosphere under positive pressure within the RAs. One criterion for maintaining a safe RA atmosphere is the inclusion of an air pressure relief valve that will activate at a maximum of 1.25 kPa (specified as 0.18 psi, or approximately 5.0 in. H2O), or as specified by the RA manufacturer, above mine atmospheric pressure in the RA (U.S. Department of Labor, 2008)."

Oct 1, 2016

By Larry S. Diaz

It is felt that prior to the presentation of the technical portion of this paper, some general information would be of interest. The Sar Cheshmeh Copper Mining Company was founded by the Iranian Government to oversee the design and construction of Iran&apos;s first copper smelter complex, which will be another step in the industrialization of Iran. Since this is the first such plant in Iran, Sar Cheshmeh wisely chose to enlist the technical assistance needed in regard to the facilities requiring engineering and operating know-how from outside of Iran. To obtain the foregoing, SCCM signed a contract with Anaconda-Iran, Inc., which was formed by The Anaconda Company for this project. The general scope of this contract covers the overseeing of engineering and design by Parsons-Jurden as well as physical plant construction. In addition to this, the same services were given to water supply and tailings disposal systems which were not included as part of the Parsons-Jurden contract. Anaconda-Iran is also assisting SCCM in setting up a training program for Iranian personnel for plant operations, administration, etc., which .will go on for some time after the plant startup, under the guidance of Anaconda-Iran expatriates. SCCM?s other responsibilities, in respect to the development of this industrial effort, are the building of a townsite for approximately 2200 families, the expected manning requirements, having all the facilities necessary to provide a pleasant life in a remote area. It has been estimated that the manpower for operations will be 2050.

Jan 1, 1976

By William K. Burriss

Computer technology was applied to solve three problems in the selling of certain industrial minerals to the glass and foundry industries. The computer solutions provide for better service to customers and have helped increase sales. II. Summary Electronic data processing techniques were applied: 1. To automatically and continuously "trace" rail car shipments of bentonite. 2. To aid our sales people in recommending to glass plant purchasing agents which of several possible feldspathic materials is the best value at any of about 100 glass plants and to give guidance on the amount of value difference. 3. To help in locating plant sites for three blending or pre-mixing stations to serve the foundry industry at minimum cost and with maximum tonnage and maximum profitability.

Jan 1, 1968

By James E. Lawver

At the present time, the Florida phosphate industry is experiencing one of the worst marked slumps in its one hundred year history. Recent agriculture over-production has caused low grain prices such that the net income of U.S. farmers is expected to drop to its lowest level since the 1932 depression. The farmers&apos; low income, along with high interest rates that preclude them from borrowing to purchase fertilizer, make the immediate U.S. phosphate market outlook bleek at best. The export outlook is also pessimistic due to world recession and the U.S. dollar&apos;s high exchange rate. In June, 26% of the phosphate industry&apos;s workers were laid off for an indefinite period of time. Despite the immediate painful slump, the long-term outlook for the industry looks good. Florida has enormous reserves and will continue to produce a third of the world&apos;s phosphate supply simply by making changes in the present system of mining, beneficiation, waste disposal and land reclamation.

Jan 1, 1983

By Yuting Xue, Gamal Rashed, Zoheir Khademian, Connor Brown, Khaled Mohamed

Ground falls in U.S. underground coal mines can lead to significant consequences, including loss of life, injuries, damaged equipment, and production stoppage. Improving the safety of the workplace is of utmost importance for mine workers and the U.S. economy. The Mine Safety and Health Administration (MSHA) accident/injury/illness dataset provides short narratives for reported incidents, including ground-falls. The main objective of this study is to develop a framework that includes: 1) utilizing machine learning algorithms to categorize ground-fall incidents from narratives based on the main cause of the occurrence and 2) demonstrating an example of a user-friendly visualization to display injury/fatality trends from narratives in U.S. coal mines between 1983 and 2021. The developed framework was tested on a subset of the data and achieved an average F1-score of 96% in categorizing the incidents. The outcome will help identify areas requiring additional research and innovative solutions to reduce severe occupational hazards.

Feb 1, 2024

By Eugene P. Pfleider

The mining industry of the World, and particularly of the United States, has made a complete reversal from underground to surface mining methods since the turn of the 20th Century. This has occurred even as average ore grades were decreasing and strip ratios rising. In the early 1900&apos;s there were over 100 underground mines producing from the three iron ranges of Minnesota -- today there are hone. Practically all of our coal prior to 1930 was mined underground; today over one-third is from surface operations and that percentage is increasing. Although world mining has hot changed to surface techniques as rapidly as has the U. S. Industry, the shift is escalating and will approach our figures shortly. A comparison of World and U. S. production figures are shown in Table 1, taken from the AIME Surface Mining volume, and the trend rates for the U. S. are depicted in Fig. 1.

Jan 1, 1968

By M. H. Pettibone

During the past decade, the size of grin- ding mills has steadily increased. Mills 11 m in diameter with 9 mW motors have been installed with even larger units on the drawing board. The rising costs of energy and labor have spurred interest in improving efficiency while reducing capital investment and operating labor. Autogenous and semiautogenous grinding have experienced renewed interest as efforts to reduce operating and capital costs have increased.

Jan 1, 1981

By T. Faulkner, S. A. Richards

"The Scale-Distance formula is one of the primary means of determining the maximum amount of explosives that can be safely detonated at one time by a single delay. This paper describes a method of applying the Scale-Distance formula to the entire mining area using gridded surfaces. Using this technique, the operator can better determine the economic impact of nearby structures on the mine plan. INTRODUCTION As the surface mining of coal and stone encroaches near populated areas, precautions must be taken to minimize blast vibration damage to protected structures. The common method employed to minimize vibration damage is not to reduce the total amount of explosive in the hole (which would negatively affect fragmentation), but rather to introduce delays to reduce the amount of explosive detonated at any point in time. The Scale-Distance formula, an industry-accepted standard, may be used to calculate the maximum weight of explosive that can be detonated at one time without damaging the structure. This information may then be used to determine the number of delays required for each hole. Detonators make up a large part of the cost of blasting. At roughly $15 per detonator an additional detonator in the hole can be significant. It is normal to set off hundreds of holes at in one shot. An additional detonator in each hole can cost additional thousands of dollars per shot. The number of detonators is also a function of the depth of the holes and the hole spacing. Being able to accurately forecast the economic impact of blasting near structures improves a company’s ability to make informed decisions on how to approach property owners. Operators basically have three options when dealing with property owners: 1. Buy the property and blast without restriction 2. Negotiate with property owner for a waiver to allow unrestricted blasting 3. Comply with the legal blasting restrictions This paper proposes a method for the engineer to forecast for all points in the proposed mining area the impact of nearby structures upon the blast design. Being able to create a contour map and ultimately estimate the number of delays required for the entire forecasted mining area, the engineer can create accurate economic forecasts of the cost of blasting. The objective is to reduce the level of uncertainty in the forecast of the blast component portion of the forecast."

Jan 1, 2016

"INTRODUCTION In recent years, there has been increasing focus on environmental and social impacts of the extractive industries, climate change and resource scarcity. The concept of the circular economy aims to replaces the “take-make-dispose” economic model with one that eliminates waste of all kinds and is restorative by design. Such closed-loop systems implicitly aim to reduce the quantity of primary extracted materials entering the economy, thereby affecting supply and demand dynamics, hence mining industry economics. For the metals industry, the ability to engage in, or adapt to the circular economy can be heavily affected by industry structure and geographical factors. Eco-efficiency initiatives that reduce waste and environmental impact may help the mining and metals industry align with some of the goals of the circular economy. This paper focuses on base metals, and explores case studies in copper, lead and zinc. It analyzes primary and secondary metal production, and recycling. It examines company structures and how these affect engagement with the circular economy. CIRCULAR ECONOMY PRINCIPLES Ellen MacArthur Foundation (2012) describes the circular economy as “an industrial system that is restorative or regenerative by intention and design”, which “replaces the ‘end-of-life’ concept with restoration”, and “aims for the elimination of waste through the superior design of materials, products, systems, and, within this, business models”. The concept is systems focused. For materials such as metals, a series of loops are considered, including maintenance of devices, reuse, refurbishment and recycling. Potential methodologies to achieve circular economy outcomes include disassembly and reassembly of manufactured goods, leasing rather than buying major appliances, and converting to renewable energy sources. The circular economy is partially aligned with the principles of eco-efficiency, which relate to reducing the environmental impact per unit of a material produced. PRIMARY AND SECONDARY METAL PRODUCTION Base metals (copper, lead, zinc and nickel) are essential ingredients in modern economies and are key commodities produced by the global mining industry. Metal production can be categorized as primary or secondary. Primary metal comes from the processing, smelting and refining of metal content extracted from ores, while secondary production comes from metals recovered from recycled streams (e.g. recycled lead-acid batteries, copper wire scrap, etc.). Metals are stored in natural, anthropogenic in-use and anthropogenic waste stocks. An example of the stocks, flows and processes associated with global copper extraction and use is shown in Figure 1."

Jan 1, 2018

By T. A. Laser

"INTRODUCTION A positive workplace environmental, health, and safety (EHS) culture affords organizations and corporations many benefits, including increased trust and employee morale, sustainable EHS performance improvements, and reliable productivity and profit margin growth. Unfortunately, many leaders and EHS professionals struggle daily to achieve and maintain positive workplace cultures and consistent business results. While lack of management support, corporate or employee buy-in, resources, and time are common factors that conflict with an EHS culture and safe work behaviors and processes, there are many other actions that threaten the positive attributes of an organization’s culture. Often these culture killers are not recognized, or worse yet, ignored because they are considered taboo. For example, voicing observations or questioning long-held management practices or process that were initially designed to promote EHS values, but no longer do so. Unfortunately, this could be viewed as challenging authority, not being a team player or even not valuing EHS. And for those that speak up, the potential for negative consequences can be real impediments to positive change. Having an open mind, constantly striving to identify culture killers, and putting forth the effort to eliminate them are the first steps to begin reaping the benefits of having a sound workplace culture. This paper helps readers to: • Recognize culture killers that negatively impact fostering and maintaining sustainable EHS cultures in the workplace. • Understand how to prevent, avoid, and respond to culture killers, before they wreak havoc in your organization. • Assess EHS culture strength, and implement plans to continuously improve it. The desire to draw boundaries around concepts, put things into boxes, and nail down requirements for something that is virtually impossible to solidify for any length of time is quite fascinating! These desires can pose challenges when trying to define what the perfect EHS culture should look like. The very act of trying to define our culture tends to create silos, and these silos, in turn, can become “culture killers”. The following is one of the most common culture killers. UNBALANCED ORGANIZATIONS TRIGGER CULTURE KILLERS Unbalanced organizations occur when an organization’s constantly shifting focus forces other important needs to take a back seat--until the focus changes again. This balancing act can be detrimental and lead to catastrophic results including low morale, lack of trust, employee dissatisfaction, high turnover, increased incidents, poor profit margins, loss of market share, and ultimately into organization-wide failure."

Jan 1, 2018

By J. Torma-Krajewski, C. Hipes

Many mining companies apply ergonomic principles, but it is done either informally and/or reactively. Examples of an informal approach include replacing worn equipment, such as seats, with models that have ergonomic features, or modifying tasks to eliminate safety hazards that will also reduce risk factor exposures that may result in musculoskeletal disorders (MSDs). A reactive approach is followed when modifying a task/equipment after an MSD occurs. Neither one of these approaches involves a systematic method of proactively applying ergonomic principles to actually prevent injuries or illnesses. This paper will discuss how Vulcan Materials Company applied ergonomic principles and the interventions implemented to reduce risk factor exposures.

Jan 1, 2007

By Hugh Douglas

This paper discusses the financial health of the U.S. mining industry and its ability to meet the future raw material requirements of this country in the context of resource independence. The title of this paper begs several questions, and three will be raised here. The answers to them will form the basis for discussion. The three questions are: What does one mean by resource independence. How is the U.S. mining industry defined. How is financial health measured.

Jan 1, 1977

By G. J. Joy

Although rates of pneumoconiosis in coal miners have declined substantially in the United States since the passage of the Federal Coal Mine Health and Safety Act of 1969, new cases continue to occur, including cases of rapidly progressive disease. In contrast, Australia&apos;s underground coal mining industry has reported few new cases of pneumoconiosis for more than 20 years. Mortality from coal workers&apos; pneumoconiosis in official health statistics and the prevalence of pneumoconiosis among miners screened in X-ray surveillance programs are also lower in Australia. The U.S. National Institute for Occupational Safety and Health (NIOSH) was requested by both industry and labor stakeholders to examine this issue, with the ultimate aim of reducing the rate of pneumoconiosis among U.S. coal miners. A number of factors, including coal dust exposure, silica exposure and coal rank were examined as potential contributors to the above noted differences. Comparison of coal rank data from each country did not illuminate the issue. Air sample data from the coal mining industries in both countries show that coal dust levels in Australian mines are somewhat higher than those reported in similar U.S. mines; however, quartz exposure for Australian miners is lower than for many U.S. miners. If quartz is contributing to the greater number of cases of pneumoconiosis in the United States, more effective dust control measures, as well as an independent exposure standard for respirable quartz in coal mining, should be implemented to reduce this potentially disabling condition.

Jan 1, 2012

By Thomas D. Kaufmann

Introduction Mining has always been sensitive to the fluctuating income of downstream customer industries. The industry is now becoming more vulnerable to booms and busts as economic pulsations increase and demand for mining products shows little or no long-term growth. As the general economy has become more cyclical in the last decade, the capital-intensive primary industries have become more aware that timing as well as preparation of survival plans are vital in investment decisions. Strangely, however, some of us have not yet included the business cycle in our feasibility studies. Cyclic prices and volumes and fluctuations in profits and cash flows do not fit our linear models. The increased cyclical nature of our economy is recent and poorly understood. Forecasting peaks and troughs is still more an art than a science. Nevertheless, avoiding business cycle parameters can lead to error in value estimation and contingency planning of new projects. Metal and Mineral Industries More than half the iron and steel, aluminum, copper, lead, zinc, manganese, tin, nickel, molybdenum, cobalt, and chrome that we mine, smelt, upgrade, and recycle goes to construction, transportation, capital goods, and consumer durable industries. All are cyclical. Their products are consumed slowly, so replacement can be postponed in recessions. Purchases of such goods are usually financed by debt, and their customers are sensitive to highly cyclical changes in interest rates. During prosperous periods, people tend to buy capital goods despite high interest rates. Upstream industries also tend to be whipsawed by inventory cycles. With high interest rates and good transportation, downstream fabricators can lighten their inventories during recessions. They know that upstream suppliers can deliver supplies and raw materials immediately, And, with the advent of electronic accounting, the fabricator with timely inventory information can afford to hold fewer contingency stocks. Likewise, when recovery returns, inventories surge back through industry pipelines, accelerating demands on primary supplies. The price elasticity of most primary products is low. Their share of the value of finished products of the industries they supply is generally small. The 60 kg (130 lb) of aluminum in a car is vital. But whether it costs $80 or $130 will not visibly influence the demand for an automobile. With low elasticities of demand, the primary producer is hit with decreases (or increases) in prices and in sales volume, during recessions as well as recoveries.

Jan 6, 1984