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By Michael Cruickshank

All life on Earth relies on the ocean and yet the ocean is 95 percent unexplored, unknown and unseen by human eyes,? said Paula Keener, director of education programs for National Oceanic and Atmospheric Administration?s (NOAA) Office of Ocean Exploration and Research. ?To better understand, manage and protect the ocean and its resources, NOAA believes it is critical to use the best technology to explore, discover, inform, educate and motivate? (MTS, newsletter, January 2011). In the last few decades, our understanding of the global mineral resource base has been drastically changed by some surprising new developments. The potential for commercial minerals per unit area in the oceans and seabed appears to be similar to that of the terrestrial lands. Thus, almost three-fourths of the global mineral resources are in, or under, the sea and are virtually undeveloped. The area of the Pacific seabeds alone is greater than the total area of the global lands. Half of the global seabed minerals are now controlled by nation states within their Exclusive Economic Zones (EEZ). The other half is controlled by the United Nations (UN) through the International Seabed Authority (ISA) within the ?areas beyond national jurisdiction? known as The Area. Thus, the Law of the Sea, ratified in 1994, has resulted in the largest transfer of control of natural resources in the history of mankind. This paper was prepared by the Society for Mining, Metallurgy and Exploration (SME) Committee on the Offshore Technology Conference for the SME Board of Directors and other interested parties. As the premier professional society for the mining and mineral community in the United States, with a history dating back to the 19th century, SME?s mission is to encourage and support young men and women engineers in the minerals industry, provide the services they need, improve the image of the industry, strengthen the networking among global industry professionals and engage in proactive collaboration among industry, government, academia and nongovernmental organizations (NGOs). The accomplishment of this mission can be strongly advanced by highlighting what is probably now the most significant development in the history of the modern minerals industry - the exploration of the marine environment and the understanding of the potential for the development of the minerals therein.

Jan 1, 2011

By J. C. Barker

Alaska, with about 74% of the US continental shelf, is largely unexplored for placers in its vast shallow marine waters. Nevertheless, there are numerous occurrences of marine minerals including gold, platinum, and cassiterite. Offshore dredging has recently begun in the Nome area. State and Federal agencies are preparing additional acreage for leasing. With 76,200 km (47,300 miles) or 54% of the US coastline, Alaska is a vast, largely unexplored frontier for shallow-water marine placers. Despite the general lack of mapping and only sporadic past prospecting, many prospects are known and a major mining operation for gold has recently begun offshore of Nome. Due largely to the demonstrated success of the Nome operation, the US Minerals Management Service is preparing to conduct a lease sale of additional acreage further offshore from Nome. And future sales are being considered elsewhere by both the Federal and state leasing agencies.

Jan 1, 1990

By J. M. Barker

The concept of global-market access through transportation efficiency is a concept whose time has come. The basis of this approach is customer satisfaction—the higher the better. But beyond what seems almost too logical is the question of how to achieve this market access. All industrial mineral exporters face stiff competition. Factors include proximity of competitive industrial minerals and substitutes, pricing pressure, political and cultural differences, currency fluctuations, communication problems, trade finance restrictions, and transportation imbalances. The following discussion will focus on transportation activities in global competitiveness, but the producer with the larger offering of services will often make the sale, not necessarily the low-cost producer (Cook, 2002). Some key concepts for global-market access are “the market concept,” just-in-time delivery, quality retention, and global customer service.

Jan 1, 2003

By T. F. Torries

Market data commonly perceived as being useful to industry for decision making include prices, production and trade quantities, production and transportation costs, stocks, customer's needs, and competitor's qualifications. Costs and factors affecting costs are particularly important in determining competitive positions and possible future prices. These costs include relative cost of production as well as cost experienced by the buyer in making the final product. Care must be taken to calculate costs in a consistent manner to achieve meaningful analyses.

Jan 1, 1987

By M. P. Juszli

During the 1980's, a revolution has been taking place in industrial minerals marketing. Transportation deregulation and a handful of creative marketing and distribution managers have completely changed the rules for marketing many industrial minerals. Minerals are being trans-ported much farther than in prior decades and at much less cost. Bulk and package terminals are becoming increasingly common as a means to take advantage of freight rate savings and to provide enhanced service to far-away customers. Water and rail transportation are being used increasingly to penetrate markets considered unreachable Just a few years ago.

Jan 1, 1989

By G. H. K. Pearse

Long range transport of pollutants, particularly of sulphur dioxide and the associated acidic precipitation, has received much attention in the press and in international discussion during the last few years. Studies revealing increasing acidity of lakes and the dying out of fish populations over broad regions of the eastern half of North America have created alarm. In this paper, I will not attempt a description of the acid rain phenomenon. For this r recommend the balanced treatment of the subject by Gene Likens et al (1979) in Scientific Americana For my purposes I accept that the problem is serious and direct my attention to exploring a solution. Ultimately, the key lies in the answer to the question; "What do we do with the enormous tonnages of pollution abatement byproducts, chiefly sulphur compounds, that would arise from pollution control?"' Little thought has been given to this most limiting factor to environmental clean-up. This is symptomatic of a basic flaw in the [philosphy] that under-ins environmental policy. Although this paper is to propose a solution to the abatement byproduct problem, the basic flaw - the firmly entrenched, universally adopted, 'polluter pays [philosphy] as it is currently [understood] - needs some comment.

Jan 1, 1981

By R. J. Heath

Potash, the general term for potassium salts used as fertilizers, is one of the essential growth nutrients (together with nitrogen and phosphates) required by all living things. Total world consumption of potash for fertilizer use - almost all of it in the form of potassium chloride - amounted to an estimated 47 million short tons in the 1979/80 fertilizer year*. While there is some limited demand for potash for a variety of industrial applications, this amounts to only 3 or 4 per cent of total world demand, and the potash business can be viewed as essentially a fertilizer business. Total available world potash production in the 1979/80 fertilizer year also amounted to approximately 47 million tons. There are two large potash producing countries - Canada and Russia - and a number of other countries where production is significant - East Germany, West Germany, the U.S.A., France, Israel and Spain. Production volumes are shown in Table 1.

Jan 1, 1980

By Donald H. Sargent

This paper focuses upon the changing character of the market for Western bentonite, and upon transportation methods and costs affecting this market. The basis for the data in this paper, in addition to public sources of information such as federal and state government agencies and the open literature, was a program of 57 face-to-face interviews with individuals knowledgeable in the bentonite production, consumption, and transportation industries. The study was performed in 1974 and 1975 by Versar Inc., for the Bureau of Land Management, Department of the interior.*

Jan 1, 1979

By S. Eugene Mills

Twenty-five years ago, when I began my sales life marketing minerals, there was little or no contact between sales people and production people. In those days, it was not uncommon for me, as a salesman, to learn of production problems existing in my company from my customers. Today, in my opinion, any successful mining company must keep production people fully aware of circumstances that effect service to the users of the product. Basically, feldspar is presently consumed by the glass and pottery industries the same as 100 years ago. The consuming public little realizes the origin of so many things they use daily and take for granted. Feldspar is utilized in the glass that contains our Coca-Cola, Pepsi, wines, liqueurs, beer and the assorted gob¬lets from which we drink these lovely brews, the industrial glass upon which all industry depends, the bathroom plumbing fixtures that make life so different from the days of the out-house, the beautiful and durable china we enjoy at mealtime. The electricity we use requires insulators that demand feldspar. In our home ap¬pliances, automobiles, toys and airplanes, we find feldspar. I could go on and on, hopefully soliciting your help in making our taxpaying and non-taxpaying fellow man aware of the burdens he may acquire when unthinking, over-enthusiastic environmentalists foist unnecessary hardships upon the mining industry. Feldspar is marketed primarily sized from 20 mesh to 325 mesh. The glass industry requires feldspar ground 20 mesh to 40 mesh size; the pottery industry requires material from 150 mesh to 325 mesh size. One large glass plant may require up to 100 tons per day and more, whereas a small plant may use less than 5 tons per year. A large pottery plant may require as much as 50 tons per day, a small potter only 500 lbs. per year. The feldspar

Jan 1, 1977

By William Mayrsohn

IMTRODUCTION The marketing aspects of a new precious metals property is often not considered until the mine actually begins production. At this point in time it is often too late or too expensive to change the mine's final product and not enough time to do an effective marketing program. MINE PRODUCT The rule for determining the mine's final product: The higher the gold and silver content, the greater return of metal at the lowest post-mining cost. . Dore Bullion: Most advantageous Advantages: - Highest return of metal. - Lowest refining cost per ounce of gold and silver. - Very compact and easy to ship in small quantities. - Easy to assay. - Assays between mine and refiner are comparable. - Melt losses are very small at the refiner. - Outturn of gold and silver 20-30 days for quick cash flow. - Gold/silver refiners can return or purchase metal soon after arrival at a nominal financing cost.

Jan 1, 1987

By James J. Fallon

Last summer Larry Miller of Roberts & Schaefer told me that his AIME committee would like me to present some thoughts on the marketing of industrial mineral fillers and pigments to this illustrious group in Las Vegas. Shortly after, Brian Coupe of "Industrial Minerals" (the magazine) notified me that I would be presenting a paper to the Fourth International Industrial Minerals Congress in Atlanta this June. It seems to me now it might have been more appropriate to reverse the papers. Las Vegas, a town based on risk, might want to hear what we have to say in Atlanta. The subject for June is "Risk Philosophies of U. S. Industrial Minerals Companies". However, upon reflection, marketing of industrial minerals reflects risk philosophies to a considerable extent, so we'll cut the deck and deal on the subject of marketing.

Jan 1, 1980

By Albert H. Fay

The gypsum industry makes significant contribution to the wealth of our nation. This non-metallic mineral ranks in the highest order with America's most precious resources. Evidence of this is borne out by the fact that gypsum is a vitally necessary element in the building, industrial and agricultural industries. In 1967, the United States consumed 14 million tons of this valuable ore. Of .this amount 69% was required by the building industry for the manufacture of building materials. An additional 21% was directed to the industrial market, for the manufacture of Portland Cement and for other industrial uses. The remaining 10% was used for agricultural purposes.

Jan 1, 1969

By O. M. Johnson

Barite and bentonite are the two principal components of drilling fluid systems used in the petroleum industry for oil and gas well drilling with rotary-type rigs. Approximately 87 percent of the world's annual production of barite is used in drilling applications. Of the worldwide production of bentonite, an estimated 30 percent is used. The drilling fluid, or drilling mud, to which barite and bentonite are added, performs five distinct functions: Lubrication-The liquid phase of the drilling mud lubricates the drill bit, preventing premature failure of the cutting edges and bearings. it also helps to soften the formation being drilled. Cuttings Removal-A mud system must be able to carry rock cuttings broken loose by the bit up to the surface where they can be removed by mechanical or chemical methods. The fluid's ability to perform this function depends upon maintaining a proper balance between the rate of circulation of the fluid and the colloidal properties required to entrain the cuttings in the mud to prevent their settling to the bottom of the hole. Hole Stability-The pressure exerted by the mud against the wall of the bore hole prevents the collapse of the uncased portions of the hole. Downhole Information-The fluid characteristics of the mud should be such that good cuttings samples, cores and electric logs may be obtained to help evaluate a well's productive zones and potential. Control Oil, Gas and Water Flows-It is essential that a drilling fluid offset any pressure from naturally occurring formation fluids in order to prevent a potentially wasteful and dangerous blowout.

Jan 1, 1980

By L. Xinguang

Shandong MinMetals Corporation, a state-owned import and export organization located in the city of Qingdao, Shandong Province, China, was opened in 1954, with the mission of marketing metal products and industrial raw material in oversea areas for hard currency to support the modernization project of the country as well as the province. The management officers are appointed by the provincial government, and report to the Foreign Trade Department of Shandong Province. Meanwhile, the company also receives guidance from MinMetals head office in Beijing, the capital city of China. The head office does not own and control any provincial MinMetals organizations, but merely coordinate business among provinces.

Jan 1, 1990

By A. M. Whiting

Competition for coal producers and their primary customers has constantly increased during recent years. The effects of the Clean Air Act Amendments of 1990 on the electric utility industry, coupled with the normal complexities of coal production, quality control, transportation and contracting techniques have spurred both buyers and sellers to increase their level of sophistication. This paper will review the basic aspects of the U.S. coal business and explore the commercial approaches which have proven to be most successful.

Jan 1, 1994

By J. E. Castle

The essential foundation upon which to build an effective marketing program in industrial minerals is the ability to produce competitively mineral products meeting precise customer specifications and to ship them promptly and on schedule. Without this prerequisite, all the other factors in a second marketing program-creative sales management, energetic solicitation, advertising, technical service, new products, etc.are without meaning. The primary image to be created in the mind of customers is that of the reliable and prompt supplier of mineral products at competitive prices and of standard, uniform quality. With this favorable image implanted, it becomes possible to integrate the other essential factors into a strong marketing program; and without this image, little can be accomplished. After having .made provision for the basic product ion position outlined, there are then two fundamental considerations in the design of a successful marketing program for industrial minerals. The first of these is that the number of potential customers for the typical industrial mineral product is, relatively small, and indeed compared to the number of customers for consumer products, the number is actually minute. The second consideration is that the customers for industrial minerals are manufacturers and producers rather than consumers. These two factors lead to a necessity that the marketing program be specifically and uniquely tailored to fit the individual mineral product to be sold and to conform to an existing pattern of distribution.

Jan 1, 1962

By G. P. Larson

We define a specialized mineral market as follows: Specialized Markets are markets where a low volume of a given mineral is used to convey a large benefit to a specific product. Sales of these value added minerals to small markets generally require a different marketing approach compared to bulk or commodity markets for traditional minerals. Specialized and commodity markets are differentiated by several characteristics as listed in Table 1.

Jan 1, 1990

By G. P. Larson

We define a specialized mineral market as follows: Specialized markets occur where a low volume of a given mineral is used to convey a large benefit to a specific product. Sales of these value added minerals to small markets generally require a different marketing approach than bulk or commodity markets for traditional minerals. Specialized markets are differentiated by several characteristics as listed in Table 1. [Table 1-Characteristics of Specialized Markets 1. Long-term sample evaluation 2. Small volume markets 3. Highly controlled properties 4. Customized specifications 5. Technical selling effort] Many of the specialized markets require long term evaluations before sales can be made. This can vary greatly depending on the type of industry and ultimate end-use of the final product. In some cases, complete evaluations may take from several weeks to years. Length of sample evaluation has no relationship to size of market. That is, the total market may be quite small or fairly large (e.g. from a few hundred pounds to a few million pounds). Uniformity of value added minerals from lot to lot is an extremely important characteristic for these markets. Variations that are of no consequence to one industry (or application) cannot be tolerated in another. This has led to customized specifications and test procedures for specific markets and applications. Because of the greater uniformity and customized specifications, the need for greater technical selling effort is required. This is particularly true in the initial developmental phases and contacts as well as in maintaining the account after the initial order. A small entrepreneurial organization can be used to advantage to achieve goals of sales and profit to these types of markets. The large commodity or bulk producer's sales and marketing organizations are not ordinarily equipped to give the necessary service or technical assistance to the specialized markets. The organization usually required for this type of marketing is given in Table 2. [Table 2- Specialized Marketing Organization Requirements 1. Flexible approach to technical and marketing problems 2. Versatile background in a broad range of industries 3. Laboratory backup when necessary 4. Marketing expertise 5. Technically competent management] In developing specialized markets, a flexible approach to both technical and marketing problems is necessary in understanding the needs and requirements of the industry and the applications involved. This flexibility is also helpful in adapting existing products to new market areas. Having knowledge of a range of industries as broad as possible can be very helpful. It often happens that a product developed in one area or industry can lead to its application in a different area with excellent results. Laboratory assistance for a wide range of tests and test procedures is an important asset in any development program for specialized markets. Laboratories can also assist in competitive evaluations. Marketing expertise and a management with some degree of technical understanding are necessary in to assign proper cost/ benefit ratios to a proposed new product or application of existing products. This is important since the total market volume can be small and the time required for initial contact to first sale can often be lengthy. Also, management's technical and marketing expertise is required in evaluating all possible options that can be considered viable when an application is presented. Once an organization of this type is in place, it is then possible to determine the needs of the marketplace, including when various minerals might have to be customized to fill those needs. There are generally two methods of marketing, as noted in Table 3. [Table 3- Method of Marketing 1. Product Driven -Develop a product with certain desirable properties and try to find a market to utilize those properties. 2. Market Driven -Know market well enough that when a need arises, it is possible to identify a product that will satisfy the need.] These approaches are not mutually exclusive and can be used at the same time. Marketing a value added mineral generally requires the "market driven" approach. Hence, the importance of a knowledgeable management as outlined above. To determine where needs and opportunities exist, several approaches can be used. Table4 lists some of the methods employed.

Jan 1, 1993

By Hal McVey

Introduction The role of marketing in the minerals and mining industry takes on different degrees of importance depending on the commodity, but nowhere are sales and marketing more important than in industrial minerals. This article compares industrial minerals marketing with the marketing of other mining and mineral products. Marketing in Mining Some broad generalizations on the marketing of industrial minerals in relation to other mineral products can be made without getting bogged down with exceptions to generalizations. Two totally different areas of mineral production are crude oil and natural gas, and metals, including ores and concentrates. Although these commodities are the basis for two completely different industries, they share two things in common from a marketing standpoint: • Their value per unit volume is usually high enough so that they can be transported great distances. • Their specifications are readily definable and, therefore, the quality of a standard product from a production run can be communicated by stating certain chemical and physical features. This permits sales to be consummated by telephone, telex, and letter, without the need to pretest the products under use conditions. In regard to the first item, industrial minerals, as opposed to oil, gas, and metals, are in most instances site specific. Location of the point of production in relation to the point of use is of paramount importance based on a generally lower unit to volume value. This means that transportation is a major factor, with the cost of getting the mineral to market commonly exceeding its f.o.b. value. Coal marketing has many characteristics in common with industrial minerals. Coal sales can es-

Jan 11, 1983

By Rod Heath

The Saskatchewan industry has the advantages of an ore body of a size and consistency unmatched anywhere else in the world, and large, efficient mines with production costs that compare favourably with those in other countries. On the minus side, Saskatchewan is remote from most major markets, and producers face a distribution challenge to reach the offshore markets which is the main focus of this presentation. One of the characteristics of the world potash business is that all of the major sources of production are located in the developed areas of the world, while there is no significant production in any of the highly populated developing countries. The major potash producers are located in Canada and the United States, in West Germany, France, Spain and the U.K., in Russia and East Germany, and in Israel and Jordan. There is currently no significant production in any of the countries in Asia (with the exception of Jordan where a plant is currently in the start-up phase), Africa, Latin America or Oceania, and all of these areas must, therefore, import a11 of their potash requirements from the producing countries.

Jan 1, 1985