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By Victor J. Scaravilli, C. Richard Linamen

This paper presents a case history of Southwest Interceptor Contract No. 1, Cleveland, Ohio. It details some of the problems and solutions of handling and erecting precast concrete segments in a small bore soft ground tunnel. It also reviews how specific interpretations of contract requirements and contract administration effect production, performance and productivity.

Jan 1, 1987

By Richard E. Gertsch

If you believe that the goal of the space program should be a permanent, manned presence in space, then you believe in space mining. Historically, mining has been an integral part of the frontier. For the space frontier, mining is absolutely necessary. Any large-scale space facility must be built from materials mined in space. The reason is simple: the cost of getting material off the earth overwhelms all other costs. The cost of launching a pound of material from earth into low earth orbit ranges from $5000 to $10,000. Multiply this number by three to get to geostationary orbit. With the added expense of landing on the moon, an object is worth more than its weight in gold. Most space projects are impossible if materials must be hauled out of earth's enormous gravity well. For example, habitats (large structures in free-fall that simulate earth's gravity) and massive solar power satellites will take millions of tons of material to construct. Transportation economics alone dictate space as the source for oxygen, construction materials, and metals, among others. Space mining is not concerned with introducing materials for terrestrial use. The need for materials in space is infinite. The challenge for the mining industry is enormous.

Jan 1, 1991

By G. E. Maryniak

To date, human space exploration has been almost completely dependent on the use of resources carried with astronauts and cosmonauts from the surface of the Earth. The only exception to this has been the harvesting of solar energy to power space stations like Skylab, Salyut and Mir for long-duration missions. This dependence on materials which must be transported into orbit at costs in excess of $5000 per pound is the fundamental limiting factor in space exploration and operations. It is likely that launch costs can eventually be greatly reduced by means of such innovations as true single stage to orbit vehicles, aerospace planes, or serial electromagnetic or laser launch systems. However, the Earth will always remain an expensive source of materials for space construction and for basic commodities such as propellant and life support liquids and gasses. Fortunately, abundant sources of materials exist which are already in space, outside of the Earth's deep gravity well.

Jan 1, 1992

By Sunny Murmu, Gnananandh Budi

One of the most significant concerns in longwall ground control is the instability and failure mechanism of the coal wall. The current research uses FLAC3D to simulate panel 1 of the Adriyala Longwall Project, India, in order to evaluate the distribution of vertical stress and material failure mode, in and around the longwall face. Additionally, three distinct criteria are used to evaluate coal wall spalling: vertical stress distribution, maximum shear strain, and residual cohesion. A novel algorithm is also proposed to appropriately capture roof bed caving, shield installation and advancement, and coal extraction from the face. The findings of the modelling show that progressive longwall extraction creates an elliptical stress relief zone around the excavation void. During the peak stress phase, the height of the stress relief zone is greatest, whereas the width is highest during the main fall phase. As mining advances, the coal wall at the face line appears to lose its stress-bearing capability. Shear failure was the most common coal wall failure mode. Maximum spalling depth (MSD) and longwall face spalling index (LFSpI) were used to measure the extent and volume of coal wall spalling in FLAC3D. For panel 1 of the ALP mine, the MSD, and LFSpI were determined to be 3 m and 90.5 %, respectively. The mode of coal wall spalling was expected to be total or fragmented failure. The field observations and the numerical modelling findings were in good agreement. The compressive strength and deformation modulus of the immediate roof appear to have a substantial role in coal wall spalling. The results of the proposed numerical simulation exercise can help strata control engineers better detect the risks of coal wall spalling and enhance face control for safe and productive working environment at the longwall face.

Aug 8, 2023

By R. Halatchev

This paper treats the spatial aspect of mine sequence optimization, revealing it in the context of determining the optimum number of cutbacks of an openpit mine. Cutback mining is currently a dominant method in the mining of base and precious metals. It is based on a pseudo-economic discretization of the pit space using advanced pit design algorithms. The result of implementing such an approach of pit design is the generation of pit shells, which need to be grouped into an optimum number of cutbacks to maximize project value. In this paper, the development of a mathematical solution of this problem using combinatorial analysis is presented. The solution provides a multivariate investigation of the optimum mine sequence with the implementation of a method for production scheduling optimization that uses Net Present Value (NPV) as a criterion for assessing the economic efficiency of mine sequencing. A case study using the conditions of a hypothetical openpit gold mine is provided to illustrate the applicability of the approach. The results obtained reveal the complex nature of NPV variation as a function of the cutback geometry.

Jan 1, 2015

By Martin L. Smith

Sampling and subsequent geostatistical structural analysis is being carried out on the Bunker Hill Superfund site in northern Idaho's Silver Valley. This paper reports on the findings and methodology used in the initial sampling campaign which had the goal of determining an appropriate sampling grid design, spacing and protocol. Emphasis is placed on those characteristics, of mine wastes which are unique and require special consideration when applying geostatistical analysis. This study represents one of the first applications of geostatistical techniques to the problem of hazardous mining waste site characterization. Remediation of Superfund projects similar to the one described herein represents opportunity as well as liability for the mining industry.

Jan 1, 1992

By Mustafa Kumral, Samer Hmoud

Effective management of ore loss and dilution is essential for successful grade control and short-term mine planning due to their significant impact on the economic, environmental and technical aspects of openpit mining operations. Factors influencing ore loss and dilution fall into two categories: (1) controllable factors, like mine equipment selectivity and blast design, and (2) uncontrollable factors, such as spatial heterogeneity of ore and waste blocks on a bench. This paper focuses on the second category by applying spatial entropy concept to capture heterogeneity at the scale of selective mining units. In this paper, global spatial entropy is used to assess the impact of spatial heterogeneity between ore and waste blocks on the magnitude of ore loss and dilution, while the local spatial entropy can guide the allocation of blast movement monitoring balls preblast. High values of the global spatial entropy indicate increasing potential of ore loss and dilution, which reduce profit. Furthermore, through a number of case studies, the study investigates the relationship between spatial entropy, cutoff grades, blast movement, dig-limits optimization model running time, and profit. The results show that changes in cutoff grade and blast movement can significantly affect spatial entropy post-blasting and increase ore loss, dilution and profit reduction, revealing the need for controlled blasting at specific bench sections. Additionally, the results demonstrate an exponential increase in profit reduction due to ore loss and dilution with a rising global spatial entropy

Jun 1, 2024

By Mustafa Kumral, Samer Hmoud

Effective management of ore loss and dilution is essential for successful grade control and short-term mine planning due to their significant impact on the economic, environmental, and technical aspects of open-pit mining operations. Factors influencing ore loss and dilution fall into two categories: (i) controllable factors like mine equipment selectivity and blast design and (ii) uncontrollable factors such as spatial heterogeneity of ore and waste blocks on a bench. This paper focuses on the second category by applying spatial entropy concept to capture heterogeneity at the scale of selective mining units. In this paper, global spatial entropy is used to assess the impact of spatial heterogeneity between ore and waste blocks on the magnitude of ore loss and dilution, while the local spatial entropy can guide the allocation of blast movement monitoring balls pre-blast. High values of the global spatial entropy indicate increasing potential of ore loss and dilution, which reduce profit. Furthermore, the study investigates the relationship between spatial entropy, cut-off grades, blast movement, dig-limits optimization model running time, and profit through a number of case studies. The results show that changes in cut-off grade and blast movement can significantly affect spatial entropy post-blasting and increase ore loss, dilution, and profit reduction, revealing the need for controlled blasting at specific bench sections. Additionally, the results demonstrate an exponential increase in profit reduction due to ore loss and dilution with a rising global spatial entropy.

Nov 28, 2023

By Qiang Wang, Jiaqiang Yu, Chunhui Fan, Yong Wang, Changyu Jin, Jun Bai, Yu Lu

Accurate ore blending necessitates an in-depth understanding of movement trajectories of fragments and the spatial evolution of the displacement field in the bench during blasting, Accurate ore blending is currently one of the most complex challenges faced by mining engineers. In light of this problem, a systematic study was conducted in this paper using neural network and numerical simulation based on field monitoring data. A nonlinear mapping relationship was established between the mechanical parameters of rock mass and the displacements of the monitoring points. The measured displacements of monitoring points under blasting were input into the neural network, which used back-calculation to derive the mechanical properties of the rock mass. These parameters were then applied in a forward calculation to analyze the movement trajectory of the monitoring points. The results showed that the calculated displacements were in good agreement with the monitoring results during the. The average relative errors in the horizontal and vertical displacements were 4.12% and 15.2%, respectively. Furthermore, the muckpile profile was in an inverted recumbent “S” shape after bench blasting, which was consistent with the actual shape of the muckpile. This verified the rationality and accuracy of the method proposed in this study. Finally, the movement trajectories of particles in the bench and the spatial evolution law of the displacement field during bench blasting were determined based on the calculation results, offering theoretical support and fundamental information for accurate ore blending.

Dec 16, 2023

By A. Hekmatnejad

"The objective of this work is to validate a methodology for spatially predicting the fracture intensity, defined as the average fracture area per unit volume. First, using the observations from drill holes, the fracture intensity is directly inferred at the support of drill-hole composites based on a Terzaghi correction. Subsequently, the composite values are interpolated to larger blocks. The methodology is tested on sets of simulated fracture networks, in which each fracture consists of a disc with a random diameter, random position and random orientation. For each of these simulated networks, one can calculate the actual fracture intensity within any region of space, based on geometric considerations. A regular sampling mesh is then defined to emulate a set of vertical drill holes and the proposed methodology is applied to predict the fracture intensity, both globally and locally. The actual and predicted fracture intensities are finally compared, showing that predictions are unbiased, insofar as, on average, the prediction error is always close to zero. Also, the error dispersion increases when the support of the prediction decreases, which is consistent with the well-known support effect. In practice, the proposed methodology allows predicting fracture intensity based exclusively on drill-hole information, without the need for simulating fracture networks in space, hence its interest. INTRODUCTION The characterization of fractures in rock masses is an important part in the evaluation of mechanical and hydraulic properties of rocks. Fractures have a large impact in disciplines such as reservoir engineering, safety of underground storage of CO2 or of nuclear waste, assessment of high-enthalpy geothermal installations, safety of mining exploitations, efficiency of in-situ leaching operations or of extraction by block-caving. As a rock mass property, fractures must be characterized in the three-dimensional space, whereas observations are limited to 1D (drill holes) and 2D (outcrops, drift walls), moreover very often to rather short stations, so that the available data are subject to geometric bias, truncation and censoring. Fracture characteristics includes the number of fracture sets and, for each set, the number, orientation, spacing, location, shape and size of the fractures must be inferred from data sampling. Some important parameters that are considered nearly in all models are fracture intensity and fracture size."

Jan 1, 2016

By John P. Albers

During the 1950's and 1960's a program of geologic mapping of counties has been underway in Nevada by geologists of the U. S. Geological Survey and the Nevada Bureau of Mines. The aping has been done principally at reconnaissance scales, with more detailed work in local areas. Geologic maps are either published or open-filed for about a dozen counties at scales of 1:200,000 or 1:250,000. One by-product of the geologic mapping has been the recognition of about 80 Tertiary volcanic centers from which large or very large volumes of volcanic material ranging from rhyolitic to andesitic in composition have been erupted. For purposes of this discussion these are regarded as the major centers; the tally does not include hundreds and perhaps thousands of small rhyolitic domes and plugs and basaltic vents. About 15 to 20 of the 80 major centers are believed to be calderas ranging in diameter from 3 to 25 miles. Some have been described in the literature by geologists of the Nevada Test Site and others. However, the vast majority of the 80 centers have not been described in print, and we are indebted to our colleagues for locating them for us in many of the counties. Briefly, we would like to express our appreciation to the following people all members of the USGS unless identified otherwise: Robert Coast, who has identified the centers in Elko County; Ron Willden, Robert Yates, and

Jan 1, 1968

By William F. Hahn

It is a pleasure to speak to this group about special crusher installations which are in the bauxite and phosphate rock processing industries. The installations to be discussed demonstrate the variety of conditions, materials, and results desired which must be evaluated before a selection is made from the specialized crusher technology available today. Those of you who are closely involved with phosphate rock and phosphate products processing will find some of this information a bit interesting and perhaps alien to your own descriptions or every day references. It is given from a "crusher" manufacturer's viewpoint and therefore is infused With our flair and language. General features of six (6) different crushers will be shown in cross-section With slides and will be discussed in the same order.

Jan 1, 1978

By S. C. Sethi

The paper presents an analysis and discussion of the underground ventilation system at the waste Isolation Pilot Plant (WIPP), with particular emphasis on specific repository-related requirements and the gradual evolution of engineering designs relative to the WIPP Project scope. The underground facility has been constructed with three shafts. Additional studies, coupled with actual site-specific experience, have established? the need for construction of a fourth ventilation shaft to double the under-ground airflow. As a research pilot project, and the first of its type in combining mining and nuclear technologies, the WIPP Project is accumulating data and experience that may be fruitfully applied in the future designs of ventilation systems for planned commercial nuclear waste repositories.

Jan 1, 1988

By Robert E. Goodwin

As man's need for minerals continues to grow and as the known mineral deposits become depleted, it may be expected that these increased demands will result in greater exploration for additional deposits and at continually increasing depths below the earth's surface. As labor and material costs continue to rise, the need for more economic material handling will be emphasized. The quest for heavier payloads, safely moved at faster speeds from deeper mines, will be vigorously pursued. Strenuous efforts are, therefore, being made in the wire rope industry to develop ropes with greater strength-to-weight ratios than presently available while maintaining the dependability and long life being received from the conventional rope manufactured today. For many years, high quality rope wire has been manufactured from rods of selected steel compositions. Carefully-controlled wire drawing combined with proper heat treatment has resulted in high quality wire and wire rope throughout this period. Refinements in the rod produced from specially-selected high carbon steels combined with the latest improvements in wire drawing and heat treatments have made it possible to manufacture higher strength rope wire of uniform composition and structure that is suitable for use in Special High Strength wire rope.

Jan 1, 1970

By Raymond E. Blair

Introduction Mining and minerals transportation spans the distance from the pit face and mine wall to the consumer. This transportation can be as simple as coal transfer from the mine and preparation plant by conveyor to a mine mouth electric generating plant. Or it can be as complex as copper ore transportation: concentrated, smelted, refined; drawn into wire and insulated; and cut into reels and transported to local industrial supply houses. The route of aluminum from the bauxite pits to the supermarket shelf in the form of household food wrap is another example of the potential complexity of minerals transportation. For perspective, however, mine to market minerals transportation can be split into three components: materials handling, transportation, and distribution. It should also be recognized that each mineral, market, producer, and consumer has unique transportation characteristics regarding costs, transportation mode, and alternatives in the transportation scheme. Some obvious considerations are the number of producers and consumers, the number of markets and customers the mineral serves. Concerning the latter, are you selling a million tons to one customer or a ton each to a million customers? Transportation volume About the only generalization that can be made about minerals transportation concerns the large volume of materials involved. No other industry compares to the mining and minerals industry in its huge movement of product in the crude, semi-processed, processed, fabricated, and converted states, as shown by the accompanying table of US mineral production. Whether it is crushed stone or sand and gravel moving by truck to a local market from local producers, or coal moving by 9.07 kt (10,000 st) unit trains from a mine to a power plant, or iron ore moving by lake vessel from the upper lake ports to the lower lake steel mills, mineral transportation volumes are huge. The nature of production and consumption affects the transportation mode. More than 60% of the coal moves by rail. The majority of iron ore moves by lake vessel. Ninety per cent of the sand and gravel and more than 80% of crushed stone moves by truck. Factors Affecting Minerals Transportation Some would define minerals transportation as the cost and route to move a mineral product from the first point of sale to the first point of consumption. This definition does not recognize that there can be many

Jan 10, 1982

By Louis C. Just, Grahan A. Mathieson

Low cost, greater operating flexibility, and relatively simple operation are just three of the reasons for using minicomputers in the mining industry. No less than a dozen US manufacturers have sold the new generation of minicomputers to mining operations in the US and the world. Many manufacturers produce several models of minicomputers, each with excellent calculating capabilities. Prices for these "mini-giants" range from about $10,000 for a basic system to over $300,000 for a very powerful, sophisticated system with numerous peripheral devices. While the acceptance of minicomputers by the mining sector has lagged behind their penetration into other businesses, mines with minicomputer capability-especially remote mine sites-have found applications in practically all areas of operations including standard payroll processing, mineral deposit modeling and planning, surveying/mapping, production reporting, and daily production scheduling. In fact, the only limit to the further application of minicomputers in mining is the user's imagination. There are some obstacles to the accelerated use of minicomputers in the mining sector: the limited amount of software available, limited information on site-specific uses, and limited interest in the mining market by manufacturers. The latter is especially significant in light of the fact that many manufacturers queried in a recent telephone survey did not compile statistics on locations of their units in mining. The general consensus is that mining sales represent less than 1% of the total market. Many manufacturers do believe that market dynamics will increase their future research and development for the mining industry. The minicomputer was introduced in 1968, when Digital Equipment Corp. of Maynard, MA, developed a small computing device-the PDP-8 minicomputer. It is important to note that since then, it has become increasingly difficult to precisely define a minicomputer (see box, page 1582). The mini has evolved to surpass the capabilities of many of the large computers (mainframes) of 1968, and some models rival the mainframes of today.

Jan 11, 1981

By C. P. Blair

In discussing so-called "volume rates" for the movement of coal, I start from one basic premise: That it is the job of the railroads to devise rates which will move the traffic, while at the same time assuring a fair return on their investment. No matter how reasonable and nondiscriminatory freight rates may be, if they fail to attract and hold traffic to the rails, they are utterly useless - both to the carriers and the shipping public. And it will be my purpose here to show that under certain circumstances the use of volume rates by the railroads enables them. to hold traffic which would otherwise be lost, and to avoid needless dissipation of revenues, Properly employed, volume rates should benefit both the coal industry and the railroads, I do not, however, advocate the discarding of the carload as the basic rate-making unit. Far from it. Sound operating reasons dictate the making of rates based on car- loads, and the tradition of carload rates has a firm foundation in railroad operating costs, many of which vary directly with cars handled. In short, the carload was, Is and, in my opinion, will continue to be the basis for most rail rates on coal, as well as on other commodities. But change is an inevitable result of progress, and we should not be so bound by tradition that we are unwilling to try novel methods of ate making, should the circumstances require, The modern rate maker must, now and then, run the risk of being called an iconoclast if he is to keep up with the times. As T will point out, volume rates were for many years rejected by both the Interstate Commerce Commission and the railroads, But now both the Commission and the carriers have come to recognize that under proper circumstances and conditions volume rates are a powerful and effective tool.

Jan 1, 1959

By S. D. Bechtel

Bechtel Civil and Minerals, Inc., one of the Bechtel group of companies, is a large engineering and construction firm that services the mining industry, among others. The firm's head, S. D. Bechtel Jr., comments on how his E&C company is dealing with the recessionary economy. First, he offered a historical perspective. About a half century ago-in the middle of the Great Depression-W. A. Bechtel and several business partners drew up a fixed price bid to build the Hoover Dam. At that moment in history, the W. A. Bechtel Co. was a modest success, but the times were troubled and uncertain. Money was scarce and a lot of contractors across the country were one project ahead of bankruptcy. The bid for Hoover was a make-or-break proposition for Bechtel, and it turned out successfully. The Hoover Dam was a no-frills operation in an isolated and harsh environment. There was plenty of hard work, long hours, and not many amenities. Controlling costs was critical. Everyone knew what had to be done, and why and what the consequences were. Today's Challenge Bechtel is now a bigger, more complex organization whose management views the current economic recession as a challenge to be met in much the same way W. A. Bechtel met the challenge of the Hoover Dam: by pulling together with a sense of purpose and direction. In many respects, Bechtel's situation today has a number of parallels to that which faced my grandfather. The company is eminently successful, but times are tough and there are plenty of signs that they could get tougher. My grandfather bet on the Hoover Dam to insure the future health of his company and I think we can work together again in that same tradition, make some tough decisions together, and the company's future can be just as promising. The first and most important requirement is to make certain that everyone understands the situation. The Bechtel group of companies are in an excellent financial position now. Its workload hit an alltime high in 1982 and it is well positioned in its principal markets. But the next two years may be critical for the company. Traditionally, Bechtel's work load lags behind general developments in the economy. Although many of its clients continue to suffer serious business difficulties, Bechtel is only beginning to feel the impact. The worldwide market for basic metals remains soft; relatively low prices and abundant supplies of oil and gas have flattened the petroleum market and made once promising synfuels projects economically unattractive; utility clients are still caught in the vise between overregulation and escalating costs. And persistently high, long-term interest rates have made capital investments expensive and difficult to justify. The company maintained a healthy workload through 1982. In some areas it has had little new work and consequently has been forced to lay off some staff as projects have been canceled or concluded. In other areas new work has tided the company over and more people have been hired. But new work bookings have fallen off, creating some uncertainty for the near future. 1983 requirements are clear, although seemingly contradictory. Belt tightening and cost reduction are necessary for Bechtel to remain healthy and competitive, enabling it to handle a possible further downturn with a minimum of turmoil and dislocation. At the same time, we need to allocate resources and funds in areas that will keep us positioned for the turn-around marketplace.

Jan 2, 1983

By Hans W. Schreiber

Most geologic and mining engineering consulting firms* began to experience the recession with declining billing levels, number of inquiries, and proposal requests in late 1981 or early 1982. As of today, most of them have been functioning at reduced income levels for nearly a year. And while many consulting firms have apparently reached a stabilized income level, they can see little prospect for attaining normal (pre-late 1981) billing levels and income for the remainder of 1983. A few firms have escaped being affected by the recession. Such com panies almost without exception are small (fewer than 20 personnel), offer a limited range in technical capabilities, and tend to be highly specialized in a particular niche. They include those specializing in the heap leaching of precious metals ores, in ground water testing programs, and in the derivation of computer-aided programs to monitor particular mineral processing functions. Those firms affected by the economic downturn have instituted a variety of policies and undertaken actions to cope with significantly reduced incomes to bring fixed costs in line with the depressed demand for services. These changes fall into the following broad categories: • management and management practices; • markets and market definition; • marketing and the pursuit of assignments; and • administration and personnel relationships. Not all of the perceived changes have necessarily been instituted by every consulting firm, and any one appears sporadically instituted. Management and Management Practices In favorable times the managers, and often the owners of the equity, of consulting firms tend to concentrate their attention on the part of the business they find most satisfying and enjoyable. For some, this means acting as project or assignment leaders, even undertaking a specific technical aspect of the job. For others, it means constant marketing with the associated heavy travel and entertainment schedules. In unfavorable conditions, such as the current recession, managers tend to spread themselves far more thinly, expending time and effort on all facets of the business including marketing, proposal preparation and cost estimating, budgeting, general administration, accounting and cash flow monitoring, project/assignment overview, and actual client work. The manager who in favorable times concentrated on client work is now less billable. The manager who concentrated on marketing is somewhat more billable. The manager now needs to pay attention to and expend equal effort on each facet of the business just to keep all the facets in relative balance. Falling behind schedule on a client job or carrying an unduly large percentage of accounts receivable exact a cost to the firm. Clearly the absolute cost to the firm is the same whether demand for service is good or slack. But in periods of slack demand the firm is frequently less able or even unable to bear such costs. Marketing and Market Definition Markets appear to have undergone some significant changes: • Federal and state governments have assumed a greater importance as providers of work vis-a-vis both industry and private groups. • Projects with increase-in-capacity aspects have given way to projects with maintenance or reduced operating cost aspects. • Projects searching for new deposits of minerals in generally new locations have given way to projects reviewing known mineral districts or known deposits. • Industrial mineral and mining companies have exhibited a great propensity to cut back the use of consultants and to undertake as much work as possible in-house. Further-more, a number of industrial mineral and mining companies have entered the competitive arena with consulting firms, submitting proposals (usually to the federal government) in an effort to keep their staffs intact and occupied. In response, consulting firms have reevaluated their capabilities by reviewing old work and reassessing personnel. The purpose is to broaden the services offered and the potential client base, thus redefining the available market. For example, a firm specializing in assessment of technical and cost parameters of a deposit would normally assist a prospective lender in judging the deposit's suitability for project financing. That same company could easily expand into the field of analyzing production costs for an individual operation -something that is needed in periods when lower prices reduce profit margins. Similarly, a firm that has confined such economic assistance to commercial banks could expand to provide its expertise to other lending and even equity buying in-stitutions such as insurance companies. Marketing and the Pursuit of Assignments With few exceptions, consulting firms have significantly increased their

Jan 2, 1983

By Simon D. Strauss

The recession that began in late 1980 has proved to be not only prolonged and severe, but in certain ways unique in its effect on the mineral industries among the periods of economic slowdown experienced in the Western world since the end of World War II. This time almost all minerals have been affected. In previous business turndowns, by contrast, some mineral sectors have with-stood economic adversity well. They experienced little or no adverse effect-thanks either to a strong secular expansion in the markets for their particular product or to specific factors that caused demand to be well maintained. For example, aluminum, molybdenum, and nickel are three metals that enjoyed extraordinary growth in applications during the years 1946-1973. These metals were little affected during the recessions that occurred in that era. Similarly, coal did not suffer a pronounced drop in sales in the 1974-75 turndown because, with the price of oil rising sharply, a switch away from oil and back to coal was clearly indicated for some energy-intensive applications. Oil itself was largely impervious to the ups and downs of the business cycle until very recently. And the precious metals, gold and silver, have often been regarded as benefiting from reduced economic activity because labor becomes more available, productivity rises, and operating costs diminish. In the current recession, however, no major mineral has escaped the broad trend. The secular growth factors that were previously so evident for aluminum, molybdenum, and nickel have disappeared, at least temporarily. The stable pricing behavior that previously characterized all three of these commodities has been replaced by extreme price weakness and apparent inability of the major producers to continue their roles as market leaders. Coal and oil both have suffered from a sharp drop in energy requirements. There are those who now anticipate a collapse of the market control over oil prices so clearly exercised by OPEC since 1973. If oil prices are no longer effectively controlled by the governments of the exporting countries, then coal prices are also certain to be affected. And the combination of high interest rates, tight money, and a change in public perceptions of precious metals put the skid under gold and silver quotations in 1981 and early 1982. Although inflation has been viewed as the scourge of most Western countries ever since the oil crises of 1973-74, prices-in constant dollars-of most minerals have not risen. On the contrary, with the exception of the precious metals and oil, for most minerals the prices that prevailed at the end of 1982 were close to the levels of the Great Depression of the 1930s in constant dollar terms. Table 1 compares prices for copper, lead, zinc, and aluminum at the end of 1982 with the average prices in 1934, stated in constant 1967 dollars. This emphasis on prices for mineral commodities reflects the fact that profits of mining enterprises vary directly with the level of prices. Manufacturing and retailing enterprises march to a different tune. They establish sales prices based on costs. Their profits tend to vary with volume. Commodities are for all practical purposes fungible, that is the advantages of known brands in marketing manufactured goods have little application in a commodity market. Thus the individual seller of minerals is unable to establish his sales prices. Except where a monopoly is present, he must sell at the going market. His option is to abstain from selling if he finds the price unremunerative. In past recessions, some mineral producers chose to do precisely that-either accumulating a substantial share of their output in inventory or, in prolonged downturns, abstaining from production. During the current recession, however, private-sector mining companies did not have the option of accumulating inventories to any great extent. Capital costs for new mineral projects or for expansion of existing facilities have escalated at an alarming rate since the early 1970s. Added to this has been the heavy cost of installing pollution control or safety equipment to comply with the regulations adopted in most industrialized countries (and particularly the United States) since 1968. The consequence has been that the financial position of most major mineral enterprises in mid-1980 was already strained. To finance increased inventories meant incurring additional funded debt at high interest costs, thus impairing the concern's credit rating. Management Choices Private-sector managements have had to face up to the alternative of either continuing to produce at an unchanged rate and marketing output at unremunerative prices or reducing output. The latter has meant either operating at a curtailed rate, with con-

Jan 3, 1983