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By James P. Dorian

istorical records suggest that the gathering of geologic information in China began more than 2,000 years ago. Modern-day geological work in the nation started in the early part of this century but it progressed rather slowly. Before the founding of the People's Republic of China (PRC), there were only 800 people engaged in geological work and only 200 trained geologists among them. According to Minerals and Mining in China, many accomplishments were achieved within China's mining industry during the period of years between 1949, the founding of modern China, and 1997. These include: ? The number of types of minerals with verified reserves increased from 18 (pre-Liberation) to 162 (today). ? Mineral deposit localities grew from 5,123 (pre-Liberation) to nearly 200,000 (today). Of these 200,000 localities, more than three-quarters have verified mineral reserves. ? Minerals extraction and processing contribute to 31 % of the total industrial output value of China (today). ? Regional geological maps at a scale of 1:1,000,000 covering the entire country have been completed, while regional geological and hydrogeological maps at a scale of 1:200,000 covering two-thirds of the country have also been finished (today). ? Before 1949, China was regarded as an oil-poor country. Since the 1950s, China has developed an extensive petrochemical industry. It is largely government-owned except for a limited number of joint ventures. The central government maintains active control over China's most productive fields, including the Daqing field in the Songliao Basin of northeastern China and the Shengli and Liaohe fields in the Bohai Basin of northeastern China. ? Employment in the minerals industry engaged in geological exploration increased from 800 (pre-Liberation) to 1 million (early this decade). The new report provides an overview of the current political and economic situation in China and discusses how this affects the minerals industry. China is in transition between a socialist planned economy and a market economy. This makes it difficult for non-Chinese to keep track of developments. Minerals and Mining in China is divided into 14 chapters that contain detailed statistics, including data on the geographical location and extent of known mineral reserves, production rates, local technical personnel, imports and exports. The report reveals which companies are already active in the area by profiling 50 major investment projects in China's metals and minerals industry. According to its author, China possesses one of the world's largest mining industries, ranking among the leading producers of several metallic and nonmetallic resources. The Chinese mining industry is extraordinarily complex. It has evolved into an overwhelmingly large bureaucracy that was, until the 1980s, shrouded from and misunderstood by the international community. To date, more than 160 types of minerals have been discovered in China. But a significant portion of the minerals and energy base remains largely unidentified and evaluated. And despite China's large reserves of mineral resources, with a population of more than 1.2 billion people, the country ranks among the lowest in the world in terms of proven reserves per capita. In addition, mining recovery rates in China average about 50%, significantly

Jan 1, 1999

By Louis W. Cope

Since its discovery, Cuba has been called the “Pearl of the Antilles.” The country remains that, albeit a little tarnished these days. In Havana, many of the buildings are being refurbished, while some new ones are under construction. Since 1991, the laws have been relaxed so that Cuba is developing a mixed economy of central control with free market. Joint venture agreements have been signed with businesses from many countries. This does not include the United States due to its embargo. But even these regulations have been relaxed some.

Jan 1, 2003

Mining was the first economic activity carried out in Cuba, by the colonial conquerous, i.e. gold extraction from rivers and use of asphalt to calk their ships; however, due to different historic reasons only a limited development took place in this field during the colonial domination. During the republican period beginning early in this century, other interests lead to a larger scale exploitation of some known deposits. From the beginning of the century up to the triumph of the Revolution in 1959, not less than the following figures were extracted of some Cuban minerals: Refractory Chromium 3,300,000t Manganese 7,650,000 t Copper 9,000,000 t Iron 22,000,000 t Nickel 150,000 t (Ni oxide and sulphide These productions were practically directed to cover the demands of the U.S., industry and some-times these Cuban ores were almost the sole suppliers of the market.

Jan 1, 1978

By K. F. Jakob

Sustainable development is a principle for the way we should act in the present. It ensures also options for the future to achieve a balance between social, economic and ecology development. The efficiency of raw material utilisation is being enhanced through technological developments, starting from extraction through all the following stages of the value creation chain. The use of domestically produced resources helps to assure the technological know-how. Additional indicators being collected and published by individual companies are questionable in countries with a tightly regulated legal framework such as in Germany, but make sense in developing and threshold countries. Sustainability in terms of efficient use of raw materials will manifest itself at the next stages of the value creation chain. Examples for efficiency improvement can be found in the steel, the power generation and agriculture industries. The approval procedures for German mining operations entail an internationally extremely strict assessment of the potential impact on the environment. All the mining activities include remediation and recultivation where the practise in Germany has become model character by international levels.

Jan 1, 2005

By A. Knoll, J. W. Beck, W. C. Brice, E. K. Lehmann

A cooperative study was undertaken in a neutral atmosphere by representatives of the environmental community, the mining industry and state government to identify and resolve environmental issues associated with base and precious metal mining before a commercial mining development is announced. The study included testing Minnesota's as-yet-untried nonferrous mining regulatory program using three hypothetical mining developments sited in environmentally sensitive areas where future mining could occur. Results include identification of critical paths for regulatory decision making, identification of particularly sensitive environmental issues that mill need continued deliberation before resolution and characterization of data necessary for environmental review and permitting decisions.

Jan 1, 1992

By W. C. Brice

A cooperative study was undertaken by representatives of the environmental community, the mining industry, and state government to identify and resolve environmental issues associated with base and precious metal mining in a neutral atmosphere before a commercial mining development is announced. The study included testing Minnesota's as-yet-untried non-ferrous mining regulatory program using three hypothetical mining developments sited in environ-mentally sensitive areas where future mining could occur. Results include identification of critical paths for regulatory decision making, identification of particularly sensitive environ-mental issues that will need continued deliberation before resolution, and characterization of data necessary for environmental review and permitting decisions.

Jan 1, 1990

By George E. Aikens

Prolonged subzero climatic conditions impose some unique engineering problems for the developer and operator of open-pit mines in the Far North. The remoteness of the job site and the extremely cold, long, dark winters severely tax both man and machine in the quest for the Arctic's rich mineral wealth. Undoubtedly the singular most troublesome problem for the engineer is Permafrost which underlies about 201o of the land area of the world and about 85% of the state of Alaska. Permafrost has its impact on building construction and mine excavation, while posing a more pervasive threat to the-delicate ecologic balance within the Arctic wilderness. Yet the difficulties associated with mining up North may not be as overwhelming as has been previously supposed. For example, the lowest temperature recorded at Point Barrow is -560F, whereas Montana has recorded -69.7° F.. There are no specially designed machines for mining and construction in the Arctic, and efficient equipment utilization is maintained through proper operation and servicing techniques. However, neither equipment or people can be assumed to function normally at -40°F. Special techniques in drilling, blasting, and ripping are being used to yield economically competitive ores. Overall, a fundamental understanding of the nature of Permafrost will allow the engineer to deal expeditiously with an Arctic mining venture and at the same time to deal fairly with Arctic environment.

Jan 1, 1972

By M. Javier

"Mining makes civilization possible. It also creates socio-economic problems surrounded by sustainability controversies yet continues extraction without considering the balance and finitude of nature. Nature requires restoration of equilibrium if mining and life on earth are to continue. Mining is still practiced according to Agricola’s views and the consequences it has wrought on our planet demand we critically reexamine it from its very core, to its metrics, to its design, to its technology, to how it is taught, and to reconsider its raison d'être in 2017. This paper offers tools to new mining engineers that are required to transform and solve new challenges. The task before us is to formulate an updated core curriculum that meets the demands and realities of the 21st Century. Mining professionals must rethink and reteach how to redesign mines before shovel hits dirt, how to mine with restoration of nature figured in to the mining design. Mining needs a new extractive technology in order to transform the results of its well-known liabilities. Mining has evolved and its future must be different than its past. Our industry is capable of doing this but it needs to be shown the way. INTRODUCTION The statement that ‘mining makes civilization possible’ is of the utmost importance and has the most value to us. We can examine the past and present appropriately to see the future that we are building. Mining must be addressed in a different way that makes a positive difference and improves upon rather than continues to get the negative impacts of the past. See Fig 1. Mining creates disequilibrium in Nature by producing ore, waste, tailing, dilution of resources, toxic, and pollution to its ecosystems. What is next for mining on a limited planet? Delaying the transformation of mining is not an option to developing an updated and modern mining business-as-usual paradigm. It is hurting the essentials of living in a civilization; our livelihood is in danger to the point of unrest in nature as we generate a lot of eco-print by present mining practices. So, we are urged to eliminate this bottleneck in life by employing a different design. This way, we will have a vision on how to sustain our civilization. [1]. This new design, with input from current and future generations, will be our contribution to posterity."

Jan 1, 2018

By M. Javier

Mining is most vital to our civilization. The current model of extraction technologies was designed without an expiration date and therefore generates environmental effects that are severe. Mining results-effects have been traditionally accepted and promoted around the world since Agricola described mining. Mining’s extractive technology is outmoded and standardized and inflicts negative results-effects on nature. Those results are liabilities dimensioned in legacy and type of nature able to provide to the next generation. In order to design, build, and transform mining effectively we must ask: What is the vision of mining? Mining has exhausted its antiquated mindset of over 200 years. Now it merely pilots us into crisis. The challenge today is to resolve the socio-environmental conflicts globally with a radical transformation of the mining business at its core. This paper illustrates that old mindsets must be radically updated or the concept of mining will continue to be trapped. Changing the mindset will enable discourse toward a new destiny. These changes will change mining for the better. We are able to evolve and get different results than in the past by pursuing a new legacy to live in harmony with nature for many more years. INTRODUCTION Minerals are supported by the law of conservation of mass. They have the unique characteristics of being finite, exhaustible, unsustainable, and have an unlimited recycling. Minerals are also hard to find because we have explored and virtually exhausted the whole crust of this planet. Orebodies that used to be considered world class are almost exhausted. In the short-term, it would be almost impossible to find new world class orebodies unless they could be extracted from the ocean, the moon or other planets like Mars. Mining is designed to extract minerals for profit and to keep civilizations functioning. Subsequently, mining has a social issue that is an economic issue. Thus, mining must be seen as a real and urgent subject matter that must be protected in thought and in fact. The actual mining extractive technologies produce disequilibrium in nature that has unknowable effects in the course of time. History is filled with the negative consequences to nature due to the model of mining. The evidence of these effects from mining’s model is apparent in repetitive liabilities around the world. The effects negatively impact nature without any consideration to how these impacts will manifest themselves in the future. This model of mining is widespread and extolled in every corner of the planet because it is old and familiar and although wasteful and outdated, we do not want to expend financial resources from profit or elsewhere to explore newer ideas, methods, or technologies that would help us keep a sustainable harmony between extraction and nature. We need a new vision for mining today and to explore in what way academia can and must play a social role in the teaching of mining methods. We need to question why we continue to support the old model of mining and to ask ourselves what prevents us from updating and modernizing the method of mining to meet the current needs not just of civilization but the urgent needs to undo some of the damage to the earth. This paper hopes to develop a method to change our minds about how we conduct the business of mining in order to control the destiny of it.

Jan 1, 2019

By TUIJA MONONEN, LUDGER BENIGHAUS, CHRISTINA BENIGHAUS, Virginia del Rio, SARI KAUPPI, JUHA M. KOTILAINEN, JAVIER GÓMEZ, JARI LYYTIMÄKI

The understanding of public debates over mineral exploration and mining largely originates from exceptional situations such as mining accidents of conflicts. Less is known about how mining is portrayed and understood under more conventional settings. What storylines dominate the local day-to-day public debate? This article presents results from a comparative case study focusing on newspaper coverage of mineral exploration and mining in three European countries representing different geological and socio-economic contexts. Newspaper articles from the Geyer-Erzgebirge region in Germany, the Andalusia region in Spain, and Northern Finland are studied. The sample looks into the period between September 2018 and February 2020 and shows that regional newspapers report about mining issues relatively intensively even in the absence of major accidents or other media events causing peaks of attention. The tone of the articles is generally neutral to positive towards mining activities, reflecting the specific local settings, historical experiences, and future expectations. Despite the different contexts of the three countries, there were considerable similarities to the topics highlighted, including common themes of mining revival, mining events and social interaction, history of mining, and damages related to mining. Past, present, and future employment opportunities related directly or indirectly to the mining sector are key storylines. Another recurrent underlying theme is the need to balance environment and safety risks and socio-economic prosperity, typically covered through ordinary disputes among the mining sector, public authorities, regional non-governmental organizations, and local initiatives.

Jul 6, 2021

By C. Chamberlain

The mining industry continues to underpin the regional economy. Australia, benefiting from a weak currency, receives 27% of the total goods export value from non-energy mining lead by aluminium, iron ore, gold and nickel. Consolidation has eliminated CRA, Comalco, North, Savage, Acacia, Ashton, Great Central, Aberfoyle, Placer Pacific, Plutonic, Normandy and RGC leaving Rio Tinto, BHP-Billiton, WMC, MIM and, increasingly, the South African companies Anglo, Gold Fields and Harmony as dominant players. Exploration stagnates with expenditure dropping 40% in Australia and 80% in PNG from peak levels. Major new regional developments include Rio’s West Angles iron ore project, Newcrest’s Ridgeway gold-copper mine and Inco’s Goro nickel-cobalt project in New Caledonia.

Jan 1, 2002

By Charles A. Hickey

The dining industry game tome Spruce Pine area a few years after tine Civil War. Two Yankees came down from Massachusetts to mine sheet mica to sell to the stove manufacturers for windows in heating stoves. At this time the method of mining was very crude; it was done only with pick and shovel. They were mining mica from the soft veins. Later they progressed to hand grilling and blasting. Hand drilling was quite an art in the area. One man would hold and turn the steel while one or two other men would drive the steel with hammers. In shaft raining, the muck and water was removed by hand winches called windlasses. About 1920 air compressors and jack hammers came into use. These were perhaps tide greatest improvement that has ever come to the area's mining industry. Later carne gasoline hoists, air drive water pumps, and all electrical equipment. Mica mining has, for the past few years, been very modern and efficient.

Jan 1, 1962

By Dennis C. Martin

Assessment of the potential for mining induced subsidence and determination of ultimate design requirements for a mining operation should be based on a number of assessment approaches. Although the rock mechanics engineer has a variety of limit equilibrium and numerical modeling tools available for assessment and prediction of subsidence effects, empirical approaches based on precedent experience provide a powerful tool for calibration/verification of analytical models and prediction of subsidence. Three separate analyses approaches have been applied to the assessment of potential subsidence for a proposed block caving mine in eastern Canada. The investigations have included an assessment of documented historical information from previous block cave mining at the site, deterministic analyses using limit equilibrium approaches to assess kinematically possible failure mechanisms, and three-dimensional numerical modeling techniques. Analyses results have been used and compared with precedent experience and documentation of subsidence behavior from previous mining to optimize the subsidence predictions for the proposed mine.

Jan 1, 1998

By Edward C. Spalding

The mineral estate of Arizona's State Trust lands, which are administered by the State Land Department for the benefit of the common schools and 14 other beneficiaries, totals more than 10.5 million acres, or almost 15 percent of the State's entire area. Trust lands exist in all 15 of the State's counties, with the most and least acreage found in Yavapai and Gila Counties, respectively. Revenues derived from the Trust mineral estate include royalties, rentals, and fees. In Fiscal Year 1983-84, these revenues amounted to $4.2 million, or 13.5 percent of all income received by the Trust during this period. Industrial minerals, led by sand and gravel, contributed $1.1 million from 82 active properties.

Jan 1, 1987

For all the attention given to mining activities in Central and South America, Mexico, Indonesia and Papua New Guinea, it is sometimes easy to forget the activities taking place in one of North America's most important and largely untapped regions -Alaska. The Alaskan minerals industry employed about 3,406 people during 1995. That is a 23% increase from - - 1994. It also contributed about $719.8 million to the state's economy during 1995, a 10% increase. During the past few years, Alaska has seen significant increases in exploration and mining activity. Fairbanks Mining, an arm of Cyprus Amax, began producing gold during 1996 at its Fort Knox Mine, as did Nevada Goldfields' Nixon Fork gold mine. Kennecott's Greens Creek lead-silver-gold mine also reopened and USMX began operations at its Illinois Creek gold mine. In addition, several impressive exploration projects were under way in Alaska. Placer Dome reported good results at Donlin Creek project in southwest Alaska. Likewise, Newmont Exploration is getting serious about its True North gold project. And Nerox is nearing production at its Jonesville coal project in Alaska's interior. In November, about 400 miners gathered in Anchor- age for the Alaska Miners Convention. Throughout the conference and exhibition, attendees listened to updates on these precious- and base-metal and coal exploration and mining operations. They also learned that the state wants more miners to head north and help develop its natural resources. Alaska is ripe for a smelter The mining industry -Alaska's miners in particular - has a powerful ally in Sen. Frank Murkowski (R-AK). He is the chairman of the Senate Energy and Natural Resources Committee. During his luncheon address, Murkowski said it appears that it is economically feasible to extend the Alaska Railroad to northwest Alaska, taking advantage of the large coal and hard-rock mineral tracts in the Ambler mining district. He also renewed his push for building a major smelter in Alaska to process ore that would come from the Ambler mining district. Murkowski believes that Alaska's economy can be expanded by extending the railroad from Nenana to the Point Lay coal fields to open coal development. Along the way, the railroad would pass through the Ambler district, helping to develop the hard-rock deposits. An outgrowth of this additional mineral development, Murkowski said, could be a new smelter in Alaska. It could use power from the Tyee hydroelectric facility near Wrangell or from the Makushin geothermal project near Unalaska. Either site, he added, offers access to plentiful, relatively low-cost power, at tidewater to facilitate ore deliveries to the Pacific Rim. The Congressional Research Service has determined that there are enough mineral deposits and coal beds to make it possible to finance the extended railroad, he said. The 1,200-km (744- mile) rail extension would cost about $4.2 billion. The North Slope of Alaska contains up to 3.6 Tt (4 trillion st) of coal, Murkowski said, that contains less than 0.25% of sulfur and less than 4% moisture. It aver- ages 12,300 Btu in heat content. "That is a tremendous resource," he said. The Ambler mining district, meanwhile, has at least eight identifiable hard-rock deposits, Murkowski continued. These contain zinc, lead, copper, nickel, chromium, tin, barite, gold and silver. "All eight of these can generate ore concentrates at rates similar to Red Dog's cur- rent 725 ktla (800,000 stpy)" of zinc, he said.

Jan 1, 1997

By D. A. Robbins

Remote sensing for environmental measurements is already being used. Aircraft-mounted imaging spectroscopy has been used to evaluate historical mining operations, as well as active mine sites. To the extent that remote sensing can provide more sensitive, cost effective and timely monitoring potential, the technology is of interest to the industry. Questions, however, remain about the application and validation of the data and concerning the availability of the technology in the private sector. This paper discusses some of the potential uses, benefits and concerns related to remote sensing. And it discusses efforts to monitor the technology's development.

Jan 1, 2000

By D. A. Robbins

The application of remote sensing for environmental measurements is already being utilized. Aircraft mounted imaging spectroscopy has been utilized to evaluate areas of historical mining operations as well as active mine sites. To the extent that remote sensing can provide more sensitive, cost effective, and timely monitoring potential, the technology is of interest to the industry. Questions remain about the application and validation of the data and the availability of the technology in the private sector. This presentation will discuss some of the potential uses, benefits, and concerns related to remote sensing and efforts to monitor the technology's development.

Jan 1, 1999

By D. A. Robbins

The application of remote sensing for environmental measurements is already being utilized. Aircraft mounted imaging spectroscopy has been utilized to evaluate areas of historical mining operations as well as active mine sites. To the extent that remote sensing can provide more sensitive, cost effective, and timely monitoring potential, the technology is of interest to the industry. Questions remain about the application and validation of the data and the availability of the technology in the private sector. This presentation will discuss some of the potential uses, benefits, and concerns related to remote sensing and efforts to monitor the technology's development.

Jan 1, 1999

By Donald E. Ralston, V. Rajaram, Michael N. Greeley, John W. Peters, Terry J. Laverty, F. S. Kendorski, Peter G. Chamberlain, J. Brent Hiskey, William C. Larson

Preliminary figures from the US Mine Safety and Health Administration show 801 underground metal mines and 490 surface metal mines, at the end of 1981, up from 663 and 383, respectively, in 1980. Preliminary MASH figures also show 207 underground nonmetal mines and 1070 surface nonmetal mines at the end of 1981, compared with 167 and 1092, respectively, last year. In addition, preliminary MASH figures show there were 14,676 mineral extraction operations on the surface and 3845 underground at the end of 1981, versus 14,951 and 3675, respectively, for last year. The number of mines, then, in three of four categories increased significantly, while having a lower net total of just 2% in the other category. And the number of underground extraction operations increased nearly 5% for the year, while surface operations were down less than 2%. But despite operations totals that mostly held their own or showed significant increases, it was a tough year for the nation's mining industry. The nonferrous segment of the industry had a bad year and 1982 may be no better, according to Business Week (Jan. 11, 1982), which adds that a turnaround is impossible unless the general economy recovers. Even then, with diminishing markets and overcapacity plaguing its products, the mining industry's condition "will be far from robust," the magazine says. The basic problem is that nonferrous metals-aluminum, copper, lead, molybdenum, nickel, and zinc-are tied to the most troubled sectors of the US economy. As recently as 1979, for example, more than 40% of all aluminum shipments went to the construction and transportation industries. Last year, these markets were down to 35% of aluminum shipments. And molybdenum sales to steel producers dropped by nearly 15% last year. Moreover, nonferrous products ended 1981 at disastrously low prices. Molybdenum oxide sold at $8.77/kg ($3.98/lb), half its $17.63/kg ($8/lb) price earlier in 1981 and aluminum was listed at $1.08/kg ($0.49/lb), compared with $1.54/kg ($0.70/lb) a year earlier. The Comex price of copper was $1.54/ kg ($0.70/lb), down from $3.11/kg ($1.41/lb) in early 1980, in real terms the worst copper price in 30 years. Lower prices led operators to cut their output and increase layoffs, shut down mines, and defer capital spending projects. In December, Duval Corp., a Pennzoil Co. subsidiary, shut all four of its US copper mines until March. Aluminum Co. of America had laid off 7.3% of its work force, shut nine of its 38 smelting lines, and entered 1982 operating at only 68% of capacity. Inco Ltd., the Free World's largest nickel producer, lost money in 1981, an estimated $11 million, for the first time since 1932. And, like Falconbridge Nickel Mines and other major nickel producers, had cut back on nickel production and was operating at only 63% of capacity (Forbes, Feb. 15, 1982). Amax, the country's largest molybdenum producer, had cut production by 20%. And Hanna Mining Co. sold lead for $5.07/kg ($2.30/lb), about $1.54/kg ($0.70/lb) below what it cost to produce. Another problem is that copper companies in the next few years must come to terms with problems of aging smelters. Some companies are simply closing them. In 1980, Anaconda closed its 75-year-old Butte, MT, smelter and is shipping concentrates to Japan, rather than modifying the smelter to meet environmental requirements. And oth Phelps Dodge Corp. and Asarco Inc. have antiquated smelters on which they will have to make decisions. The most troubled metal in 1982, Business Week said, will be molybdenum, with no real recovery in sight until the mid-1980s. High molybdenum prices in the late 1970s, caused in part by shortages, triggered overexpansion that will take years for the US market to soak up. On a more upbeat note, 1981 mergers might help stabilize the industry by providing funds for mining companies. Standard Oil Co. (Ohio) said it plans to spend $7 billion on Kennecott during the next 10 years for modernization and expansion. And Atlantic Richfield Co. said it will spend $500 million on Anaconda Copper Co. during the next five years. Another positive note was sounded by T. H. Adams of the United Banks of Colorado Inc. He said he expects the mining industry to experience moderate growth in 1982, led by "interest rate sensitive" demand from energy, electronics, and defense markets. And mining will be helped by "weak, but improved" construction and auto markets. The mining industry will be operating in an economy stronger than 1981, but still relatively sluggish by postwar standards, Adams predicted. Iron Ore Estimated US iron ore production in 1981 was 75.2 Mt (74 million long tons), up 6% from 70.7 Mt (69.6 million long tons) in 1980, though down from the 87.1 Mt (85.7 million long tons) produced in 1979. The mine value of usable iron produced from domestic mines was estimated at $3 billion. US iron ore was produced by 28 companies operating 35 mines, 26 concentration plants, and 16 pelletizing plants. The mines included 34 open pits and one underground mine. Byproduct ore recovered from copper- and titanium-mining operations accounted for less than 1% of total iron ore production. Fifteen mines operated by nine companies accounted for 94% of total

Jan 5, 1982

By Clement K. Chase, J. A. Eisele, Paul D. Chamberlain, Terry Laverty, Lee Rice, Larry Sevenker, Albert G. Law, Daryl Tweeton, John Peters

"Name your poison," wrote Forbes, Jan. 3, 1983, in an article describing the plight of much of the mineral industry as it entered the new year. "To ask which (mining) segment is better these days is almost like asking which of several stones would make a better life preserver." "The scene has seldom seemed darker or apparently less promising," said the Mining Journal in June 1982. And the Northern Miner described the year as the third in a "3-year drought which has completely dried up (company) coffers." Thus, 1982 became the worst year for much of the mining industry since the Great Depression. Low prices, commodity surpluses, output reductions, layoffs, temporary and permanent closures, and financial losses made headlines as the general recession continued to hurl blows at an industry facing strong foreign competition, increased government regulations, and plummeting market demand. At fault were tight US monetary policies and the resulting high interest rates that, while forcing inflation to slow, also threw the economic wheels of the country into reverse gear. Automobile production, housing starts, consumer durable sales, and capital spending all fell dramatically. US industrial production fell about 8.5% in 1982, with the GNP dropping by 1.7%. Production Value Not a single mineral escaped this recession. According to the US Bureau of Mines, US nonfuel production value dropped for all but four out of 21 metals and 14 out of 44 nonmetals. Production quantities increased for only gold, lead, and zirconium among metals and for only six nonmetals. Total nonfuel mineral production value dropped a whopping 21% from 1981 levels, the largest decline since 1938 and the first since 1971. Production value was estimated at $20 billion. Metal commodities showed heavier losses than nonmetals-37% vs. 12%-because of their link to depressed automobile and construction industries. Prices From peaks in early 1980, prices of precious and base metals, ferrous and nonferrous metals, and virtually every mineral dropped to 30-month lows in June 1982. Gold dropped to $9.64/g ($300/oz) compared to a high of $27/g ($850/ oz). Silver was quoted below 164/g ($5/oz) versus a $1.61/g ($50/oz) high. Copper was offered at a five-year low of $1.22/kg (55.5¢/lb) compared with a high of $3.30/kg ($1.50/lb). Lead went for 53¢/kg (24¢/lb) versus $1.21 (554). Nickel begged for buyers at $4.19/kg ($1.90/lb) compared to a high price of $7.72/kg ($3.50/lb). Molybdenum was available at or below $8.82/kg ($4/lb), down from a high of $44/kg ($20/lb). Cobalt went for $11/kg ($5/lb) versus $55/kg ($25/lb). Adjusted for inflation, increased currency costs, and currency devaluation, many of these prices are the lowest reached in decades. Financial Profits & Losses Low prices severely impacted companies' earnings, turning profits into sometimes disastrous or fatal losses. Robert Norton, director of the US Bureau of Mines, noting there has been a recession in the mineral industry for years, said, "Profit rates as related to invested capital have been considerably lower (for mining) than those of other industries. Mineral industry profits have been subject to greater cyclical swings and debt equity ratios have been significantly greater than

Jan 5, 1983