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L.R. Bower In regard to the paper by J.B. Gwiazda, it makes a highly technical approach to show that the µ factor used by designers of lemniscate-guided roof supports has never really been confirmed as a maximum and assumes that convergence is vertical. Also, the paper does not appear to take into account deflection of structures, which occurs when the lemniscate and base members are fully loaded to their maximum stress level, nor the front to back line of the support in relation to differential roof to floor movements caused by strata movements under pressure. It is not unusual for differential movements to be slightly diagonal to the line of the support, particularly in faulted areas and on gradient faces. The paper also does not take into account consolidation of fines immediately above and below the support. Generally speaking, any differential movement is from face to waste and under these conditions the µ of 0.3, which appears to be an international standard, has worked in practice. However, if the face end of the support is lower than the waste end, then the µ of 0.3 can be considerably increased, giving rise to the damage mentioned in the paper. The ideal design should aim for a slightly forward bias in the lemniscate guide so that the last increment of setting is toward the face, tending to close any fissures that may have developed during the support advance cycle. The support should also be fitted with positive set valves to ensure that a high setting load density is attained to minimize bed separation. As far as powered supports are concerned, convergence is irresistible and all powered supports converge at their rated yield load. A similar principle can be applied to the differential roof to floor movements to drastically reduce the very high forces that would otherwise be applied to the lemniscate structures and pins and that, in turn, are transferred to the base arrangement and floor loading. Any differential movements are usually catered for by the 0.3 µ factor or deflection of structures in the lemniscate guide arrangement and consolidation of the floor. The floor loading, due to differential movement, is in addition to the support convergence load and requires additional bearing area to avoid possible floor penetration. Some seven years ago, Fletcher Sutcliffe Wild Ltd. (FSW) introduced a lemniscate-guided shield support where the lemniscate linkage is connected to the roof bar through two horizontally converging rams to allow differential movement to take place above a given rated figure. This is a known force and can be guarded against, whereas with rigid connections the forces, as yet, are unconfirmed. By careful design, a horizontal force in excess of 6 MN (60 tons) opposes differential movements for a total ram loading of only 2.5 MN (25 tons), or 1.25 MN (12% tons) each. This principle can considerably reduce the length and weight of the support in comparison with a rigid pin-type structure ; also, the yield load rating can be increased without affecting the lemniscate forces. The graph shows the tensile and compressive forces in a lemniscate linkage of a support with and without hydrostore. These forces react into both the roof beam and base members and, as can be seen from the support height to linkage load graph, a considerable reduction in these reactions is gained by the use of the FSW patented hydrostore system. Floor loading is considerably reduced under maximum µ conditions, and by allowing the roof bar to move with the strata, some degree of improvement to strata control is achieved in line with the assumptions in the paper. In practice, these movements have only been in the region of a few millimeters, which, in turn, reflects on the improvements to strata control by the addition of positive set valves. Supports to this design of both 450- and 280-t (496-and 309-st) rating have been successfully used in the United Kingdom for several years, negotiating many faulted areas without one single reported need for repair or maintenance. This includes supports left unattended during the year-long strike, proving the reliability of the system.

Jan 8, 1986

By Eileen Ashworth

Introduction A study was completed that investigated the enrollment in mining engineering programs in 24 universities and colleges. All programs considered in the study award four-year bachelor of science degrees in mining engineering. They also provide all the engineers for the mining industry and a large portion of the geotechnical engineers working on environmental problems, storage of hazardous waste, civic, and Federal government underground projects. The numbers used as the base for the study are those reported by each program to SME-AIME and published yearly (SME, 1986). Data for the study came from the period 1975-1985. Also, since some programs include students in related disciplines and special categories, such as cooperative students, a few inaccuracies were unavoidable. A 23-page document has been prepared that reports on the overall picture of current enrollment, the trends, and discusses the results, perceived effects, and what can, or should, be done. There has been an obvious, and dramatic decrease in total undergraduate enrollment since the late 1970s. In 1978, 3117 students were enrolled. In the 1985 fall semester, enrollment was 1022, less than one-third. There were 485 seniors, 265 juniors, 147 sophomores, and 125 freshmen. The downward trend in total enrollment is likely to continue for at least another two years. Class size The catastrophic drop in enrollment is shared by all programs across the country. It does not discriminate between types of programs, coal or hard rock mining, or location. In general, 1985's enrollment is about 30% of whatever the maximum enrollment was in any program, though this varies from the teens to 50%. The latter percentage occurs only for some programs with special circumstances, particularly new programs not well established in the late 1970s. The beginning of the decline in enrollment has occurred at slightly different times as affected by the demise of each program's local industry. The numbers in each class produced from a specific freshmen year (Fig. 1) are worthy of comment. The dramatic drop in enrollment for all classes after 1982 is clearly demonstrated. The timing coincides with the general downturn in the mining industry, when many employed engineers were laid off and new graduates could not find jobs. Also, significantly fewer students are being attracted to mining programs as freshmen. The number of seniors shown seems inappropriate. Where did so many seniors come from and why are so few graduates produced? There is an increasing trend for students to take four-and-a-half or five years to graduate. Therefore, they are counted twice, once when they are first classed as seniors and again the following year. Some students purposely delay graduation to obtain more summer work experience and take additional courses. They believe that this gives them a better

Jan 8, 1986

By Gerald M. Ellis

ntroduction As the gold mining industry continues to develop in the Dominican Republic and Haiti, more deposits will undoubtedly be discovered that will be amenable to development. The Pueblo Viejo gold mine is currently in operation in the Dominican Republic. It has become an important component of that country's economy. Pueblo Viejo output is important to the government as a foreign currency earner. It is also said to be among the world's more successful gold mines. But, while Pueblo Viejo is successful, no other major gold discoveries have been made in recent years. Therefore, alluvial deposits of gold have caught the attention of geologists on the Island of Hispaniola. In the past four years, exploration and investigation of alluvial deposits have been initiated in both the Dominican Republic and Haiti. This type of activity is expected to continue over the next few years. Alluvial gold mining is rudimentary gold washing, done mostly by farmers. It is an old tradition, dating back at least 100 years, and is done by small, independent, or community farming villages in the mountains and plains of the Dominican Republic. Investigations in the DR Recently, alluvial gold investigations have been undertaken in well known locations of the Dominican Republic. One is in the Villa Altagracia area. Here, the terraces and gravels of the Haina River basin were examined, test-pitted, and assayed by Minera Altagracia, a local Dominican mining group. Results led to a new investigation by the state-owned Rosario Dominicana (RD), the company that mines the gold at Pueblo Viejo. Rosario tested areas previously investigated by Minera Altagracia. RD could not define the type of concentration that could justify an industrial-scale type of exploitation. The Haina River placers are located in the flats and valleys of Central Dominican Republic. They are classified as small-scale type of operations where local cooperatives can do the traditional gold washing. It is not now considered a dredgable project for a mining company. The next alluvial gold investigation was undertaken by the Dominican Department of Mines and others in an area of some 700 km2 (270 sq miles) in the northeast near Miches. Farmers have been washing gold in streams and excavating pits in various areas, particularly La Mina and have made a living. Government geologists panned several hundred streams and river tributaries. They also washed material from deep excavations. The results, however, were negative insofar as locating alluvial gold concentrations suitable for large-scale or industrial-scale exploitation. The most favorable locations were the terraces along the Jayán and Cuarón Rivers in the area of Miches. But the grade od concentration is poor. Actually, only traces of gold were found in these

Jan 8, 1986

By M. A. Trevits, G. L. Finfinger

Various methods have been developed through US Bureau of Mines research to remove gas in advance of, during, and subsequent to mining. These include drilling horizontal or cross-measure boreholes from a mine opening, and vertical boreholes stimulated for drainage in advance of mining or for gob gas drainage. Techniques and equipment now exist that allow drilling a borehole at any angle to the vertical, and even along an arc. Stimulation treatments have also been developed that provide for increased gas production capability. This paper describes the long-term production history of five select gas drainage installations. The Bureau of Mines conducted or participated in four studies. The remaining study was conducted by the Equitable Gas Co. Principles of storage, release, and migration of coal bed gases The amount of gas contained within any given area of a coalbed depends on the coal's inherent storage capacity and the physical conditions of the coalbed. The gas storage capacity of coal is primarily a function of rank. As such, it cannot be affected by the presence of drainage holes (Kim, 1977). Certain physical conditions of the coalbed can, however, be changed that will affect the release and migration of gas. By pumping water out of the coalbed through the vertical boreholes, two important changes occur - pressure is reduced and water saturation is lowered. Reducing reservoir pressure releases gas as the coalbed adjusts and equilibrates gas to the change. Increasingly large amounts of gas are released for each incremental decrease in pressure. Lowering the water saturation level raises the permeability of the coalbed to gas and allows the gas to more readily migrate to the wellbore (Kisse and Edwards, 1975). For horizontal boreholes completed near mine openings, the coalbed has already undergone a pressure or water saturation reduction phase. This condition thus allows such boreholes to be highly productive with minimal water production. Case studies of coalbed gas production Pittsburgh Coalbed - Marianna mine 58 A methane drainage study was begun in July 1978 at Bethlehem Mines Corp.'s Marianna mine 58, Marianna, PA (Fig. 1). The work was conducted in a section of the mine that was advanced 1.5 km

Jan 8, 1986

By Ian Hutchison, Ted Sluder, Jack Caldwell, Don Moore

Introduction The Cannon mine at Wenatchee, WA has recently been brought into operation to recover gold from the sandstones of the Swauk formation. The mine is a joint venture between Asamera Minerals (US) Inc. and Breakwater Resources. A tailings impoundment was constructed to impound 2.7 to 3.6 Mt (3 to 4 million st) of tailings at 1.8 kt/a (2000 stpd) over about five years. This paper describes the design and construction of the impoundment. In particular, it describes the 100 m (300 ft) high earthfill embankment that is the main feature of the facility. Project environment The project is located on the outskirts of Wenatchee, a town of about 40,000 people. The town is situated on the flat alluvial terraces beside the Columbia River. The Cascade Mountains rise from the terraces in a series of ridges and valleys. The mine is at the foot of the Cascades. The tailings impoundment is in one of the steep valleys. The climate is mild and dry (Table 1). Site selection Twelve alternative sites within a 16-km (10-mile) radius of the mine were examined. Decision making theory was used to select the most suitable site. Advantages of the chosen site include its proximity to the mine and its low visibility from points of common public access. Also, the area was already heavily impacted by an existing silica quarry. The major disadvantage of the site is the need to pump tailings over a distance of 1.5 km (1 mile) and against a static head of 200 m (655 ft). Also, it is located in a gulch just upstream from the town of Wenatchee. Site geology The impoundment is generally underlain by interbedded sandstones and siltstones. The siltstones are often shattered. The sandstones are often friable. Both rock types are extensively jointed. Some isolated faulting of the sediments occurred before the area was covered with basalt flows. About 10,000 years ago, at the end of the ice age, the basalts were covered by 3 to 10 m (10 to 33 ft) of wind blown loess - a fine sandy clay and silt. River deposits filled the base of the valley to depths between 5 and 25 m (16 and 82 ft). Under the main part of the embankment, these materials were removed to expose bedrock. Ground water flow is generally through the more permeable layers. The permanent water table is about 5 m (16 ft) beneath the ground surface. Project and impoundment layout Figure 1 shows the layout of the mine, the mill, and the tailings impoundment. The tailings deliv-

Jan 8, 1986

By H. Lyn Bourne

This is the fourth annual tabulation that gives mineral royalty information. The table presents previous information plus about two dozen new entries. In addition to the royalty information, some entries show the cost of purchased reserves. Last year's tabulation appeared in two issues, to accommodate all of the information. This year the format has been changed slightly so the table can be printed in one issue. This year's table presents the commodities in the same sequence as last year. Sand and gravel information appears first, followed by: crushed stone for aggregate; other stone; industrial sand; other industrial minerals; energy minerals (coal, oil shale, uranium); and finally metals. As always, a caveat relates to factors that influence the reserve values. The data should serve only as a general reference. The table is not intended to present an absolute scale of reserve costs. Several factors influence the value of mineral commodities. These factors include: • location and transportation costs (especially significant for most industrial minerals); • market conditions for both the commodity and the company acquiring the right to mine it; • quality or grade of the deposit as it reflects the amount of processing and beneficiation necessary to produce the finished product; • and legislative restrictions and conditions for mining a given material at a given site. These and other factors will influence reserve costs of reserves. The table shows the range of royalties and the variations in the basis of computing the fees. In a few instances, it gives the cost of acquired reserves based on purchase price and quantitative estimates of the material in place. The table lists the commodity; the location (either by state, US geographic area, or Canadian province); the cost (R for royalty and P for purchased cost); and the year in which the lease or purchase agreement occurred. The last column offers either comments or gives a footnote number for more information. The cost column requires more explanation. The units may refer to cubic yards (/yd), cubic feet (/cuft), tons (/T) (2000 lbs) or acres (/A). 1 cu yd = 0.76m3 1 cu ft =0.28m3 1st = 0.9 t7 1 acre = 0.40 ha or m2 In several cases the royalty is a percentage of the finished products, sale price and is levied against either the amount produced or the amount sold. We thank those who contributed information for the table: J. Dunn, T. Eyde, K. Loda, L. Morgan, F. Nix, H. Sorenson, and L. Williams. Several people have said they would like this to be an annual tabulation. That can happen if new information comes to the writer. What appears in the table is only a very small fraction of the cost information relative to the various commodities and the geographic areas for which there is royalty information. If you find this column of interest and possess information write or call: H. L. Bourne, c/o Neyer, Tiseo & Hindo, Ltd., 38955 Hills Tech Dr., Farmington Hills, MI 48018, (313) 553-6300. Only with new information can this become an annual and current source of reserves costs.

Jan 8, 1986

By R. G. Benson, P. R. Wotruba, K. W. Schmidt

Introduction The Fortitude deposit is located in Nevada's Battle Mountain mining district in the central Great Basin region of the Basin and Range province of the western US. The deposit is at Copper Canyon in the southernmost portion of the district, about 19 km (12 miles) southwest of Battle Mountain (Fig. 1). Mining activity in the district began in 1866 (Roberts and Arnold, 1965). Base and precious metals were mined by underground methods intermittently until 1955. Placer gold was first discovered at Copper Canyon in 1912. Moderate scale dredging of alluvial gravel at the mouth of Copper Canyon was conducted by the Natomas Co. from 1944 to 1955 (Johnson, 1973). In 1967, Duval Corp. began large scale open-pit copper mining. (Sayers, Tippett, and Fields, 1968). Copper prices decreased and precious metals prices increased in the mid-1970s so Duval's exploration efforts at Copper Canyon shifted to precious metals. These exploration efforts resulted in the discovery of the Tomboy-Minnie deposits and shortly afterward, the Northeast Extension deposit at Copper Canyon (Blake, Wotruba, and Theodore, 1984; Fig. 2). The Fortitude deposit was discovered in late 1980, after Duval had proceeded with precious metals production at Copper Canyon. Converting the existing plant facilities at Copper Canyon to a precious metals recovery system was completed in 1978 (Jackson, 1982). Production from the Tomboy-Minnie deposits began in early 1979. Precious metals production moved to the Northeast Extension deposit in 1982. In late 1984, after three years of preproduction stripping and mining of the Upper Fortitude ore zone, production from the higher grade Lower Fortitude ore zone began. Currently, Battle Mountain Gold Co. operates the Fortitude deposit. Production from the Battle Mountain mining district before 1967 included 4.6 t (150,000 oz) of gold, 65.3 t (2.1 million oz) of silver, 13.6 kt (15,000 st) of copper, 4.5 kt (5,000 st) of lead, and 13.6 kt (15,000 st) of zinc (Roberts and Arnold, 1965). At the time of Duval's 1967 start-up, ore reserves at Copper Canyon included 12.6 Mt (14 million st) in the East ore body and another 3.6 Mt (4 million st) in the West ore body. Both had average grades of 0.79% copper, 16.1 g/t (0.47 oz per st) silver and 0.86 g/t (0.025 oz per st) gold (Blake et al., 1984). The Tomboy-Minnie deposits collectively contained 3.5 Mt (3.9 million st) of ore grading 3.09 g/t (0.09 oz per st) gold and 9.6 g/t (0.28 oz per st) silver. The Northeast Extension reserves were identified as 1.4 Mt (1.5 million st) of ore with an average grade of 2.9 g/t (0.085 oz per st) gold and 5.1 g/t (0.15 oz per st) silver. Initial total reserve estimates for the Fortitude deposit were 14.5 Mt (16 million st) grading 5.14 g/t (0.15 oz per st) gold and 29.8 g/t (0.87 oz per st) silver (Jackson, 1982). Therefore, before large scale mining, the Copper Canyon area contained a minimum of 102.6 t (3.3 million oz) of gold and 541 t (17.4 million oz) of silver as mineable reserves. The Fortitude deposit reserves as of Jan. 1, 1985 were 10.6 Mt (11 million st) grading at 5.28 g/t (0.154 oz per st) gold and 28.5 g/t (0.83 oz per st) silver. Currently, the company is producing 6.8 t (220,000 oz) of gold and significant amounts of

Jan 7, 1986

By G. E. McClelland

Introduction Many discoveries have been made during the-past decade of low grade gold-silver deposits in the western US. This has stimulated development of low cost cyanidation procedures for precious metal extraction. Heap leach cyanidation techniques possess considerable potential for application to these low grade ores, small ore bodies, mine strip waste, and tailing materials where fine grinding is not necessary for good extraction. For heap leaching to be successful, these resources must have good permeability to achieve uniform distribution of the cyanide solution throughout the heaps. Some of the most difficult of the gold and silver ores to treat successfully by heap leaching are those containing excessive amounts of clays, or fines generated by crushing. Presence of excessive amounts of slimes, -50 µm (-270 mesh), in the heap leach feed will slow percolation, cause channeling, or produce dormant or unleached areas within the heap. This may result in unreasonably long leaching periods and poor extractions. In extreme cases, the clays or slimes can completely seal the ore heap. This causes the leach solution to run off the sides of the heap rather than penetrate the ore bed. The problem of heap leaching ores with fines can be aggravated while preparing ore heaps because of the natural sorting of coarse and fine material that occurs. This phenomenon results in concentration or ore fines in the center of individual ore piles and concentration of larger rock fragments of the lower slopes and base of the pile. When the individual piles within the heap are leveled off for the installation of the sprinkling system, additional segregation occurs as the fines sift through the coarser ore particles. This results in localized areas or zones with marked differences in permeability. Consequently, the leach solutions follow the course of least resistance. They percolate down through the coarse ore regions and bypass or barely wet areas that contain large amounts of fines or slimes. Effective use of marginal gold and silver resources by heap leaching required development of new methods to achieve more uniform size distribution when preparing ore heaps and better slime control during leaching. Early methods Agglomeration and balling of crushed ore to produce a porous and more uniform feed material for heap leaching is a viable method for treating clayey ores. Researchers from the US Bureau of Mines in Reno, NV began agglomeration pretreatment research in the mid-1970s for applications to and exploitation of these poor percolating feed materials. Little attention had been given to such methods before the Bureau's research. In 1905, T. C. Scrutton developed a unique technique for obtaining rapid vat leaching of a clayey ore where the gold was finely disseminated. His technique consisted of rolling the ore down a chute inclined at 60° to form agglomerates or balls readily permeable by the cyanide solution. However, these agglomerates lacked rigidity. And, to ensure good percolation leaching and washing, they could not be bedded in layers more than 1 m (3 ft) deep. If this depth was exceeded, it is difficult to obtain uniform leaching and washing. This results in reduced gold recovery. Shepard and others in 1937 studied the addition of lime and carbon dioxide or calcium carbonate to gold-bearing tailings to form agglomerates suitable for vat leaching. Satisfactory percolation flow rates were achieved in 90 g (3 oz) scale experiments, but the reagent requirements were cost prohibitive. Agglomeration and pelletizing has been used in other segments of the mineral industry. This technique was first used successfully around 1911 for pelletizing iron ores. Since then, agglomeration

Jan 7, 1986

Despite limited discussion, Chemistry of Flotation is a good text and reference 1985 by M. C. Fuerstenau, J. D. Miller, and M. C. Kuhn Society of Mining Engineers Caller No. D Littleton, CO 80127 Softcover, $23.50 (member), $18.50 (student member), $28.50 (list) Review by Richard R. Klimpel Chemistry in Flotation, as stated by the authors, is intended as a textbook for students as well as a reference book for practicing flotation engineers. It covers subject matter related to surface phenomena; collectors and collector salts; natural floatability; the flotation of sulfide minerals, insoluble oxide and silicate minerals, semisoluble salts, and soluble salts; and slime coatings. There are no discussions in the book on practical plant implications of flotation chemistry, such as the influence of rate, particle size effects, dosage, flotation equipment, and methods of chemical addition. The book itself is small (only 177 pages), and, as published, is in an easy-to-handle soft cover. Once one accepts the intent of the authors, this book really does represent a very concise and convenient summary of the chemistry of flotation. It is, however, far from complete in its discussion of concepts and implications of data. Very often in the presentation, key prior knowledge (or at least subject matter awareness) not given in the book, is assumed. Thus, depending on one's familiarity with the specific subject matter, some sections can be easily followed while others could be tough going. Some of the discussion is so brief and terse on important subjects that unless the reader already realizes the meaning of the presentation, the conclusions to be drawn are not always clear. Therefore, if one is not expecting a self-contained primer on flotation chemistry, this book is very useful. To this end, the book is recommended to practitioners of flotation chemistry. The presentation of data in figures and tables is good. It helps considerably in the book achieving its conciseness. The authors certainly are qualified and knowledgeable in the subject matter - apparent in the style of presentation. In summary, this reviewer thoroughly enjoyed this book and will use it as a concise review of flotation chemistry. Richard R. Klimpel, member SME, is a scientist with Dow Chemical Co., Discovery Development, 1776 Building, M. E. Pruitt Research Center, Midland, MI 48640. International Symposium on Blast Furnace Ironmaking, 1985, The Indian Institute of Metals, The Tata Iron and Steel Co., Ltd., Jamshedpur 831007, India, 282 pp., papercover, no price given - Papers from this symposium held in Jamshedpur, India, include the following: determination of coal and coke quality; feed to blast furnaces; burden quality and blast furnace performance; operation of blast furnaces on charcoal; review of cast house slag granulation systems; developments in blast furnace engineering and control; process improvements in blast furnace ironmaking; coal injection into the blast furnace; and coke from stamp charged coal. Advances in Materials Technology for the Process Industries, 1985, edited by H.A. Huskins, National Association of Corrosion Engineers, P.O. Box 218340, Houston, TX 77218, 273 pp., softcover, $20-This book is the proceedings of a meeting held in Atlanta, GA in October 1984. It describes innovations in metallurgy, ceramics, glass, composites, and polymeric materials that impact the integrity and economics of operating systems. It covers biotechnical developments, improvements in membrane systems, or beneficiation processes, as well as developments in electrochemical controls, testing procedures, and surveillance techniques. A Reference Guide to Mining Legislation in Canada, 1985, by B. Barton, B. Roulston, and N. Strantz, The Canadian Institute of Resources Law, Room 430, Bio Sciences Building, The University of Calgary, Calgary, Alberta, Canada T2N 1N4, 120 pp., bound, $US28- This guide provides a ready means of finding how the different jurisdictions in Canada regulate mineral activity. It covers the rights required for exploration, development, and production of mineral metallics and industrial minerals. It does not cover placer mining, petroleum and natural gas, bituminuous sands, coal, or structural materials. Dictionary of Geological Terms, 1985, edited by Robert L. Bates and Julia A. Jackson, The American Geological Institute, 4220 King St., Alexandria, VA 22302, papercover, $7.95 plus $1 for postage - This third edition is for geoscience students, teachers, and rockhounds. It defines the core vocabulary of earth sciences, contains 8000 revised definitions, and includes 1000 new terms. It adds recent terms in plate tectonics, hydrology, and permafrost studies. Accurate definitions are given without technical jargon, cross-references are included, and commonly used abbreviations are provided. Processing and Utilization of High Sulfur Coals, 1985, edited by Yosry A. Attia, Elsevier Science Publishing Co. Inc., 52 Vanderbilt Ave., New York, NY 10017, 787 pp., bound, $142.50-These proceedings comprise the majority of the papers presented at the First International conference. Investigators there reported the latest discoveries, developments in commercial practice, and state-of-the-art reviews of scientific principles and applications of various technologies for handling, processing, and use of high sulfur coals. Sessions were held on: characterization of sulfur in coals; environmental problems and impact of high sulfur on coal use; selective mining and blending; coal desulfurization by physical and chemical cleaning techniques; handling of coal fines; sulfur capture during coal combustion; biological desulfurization of coal; and new applications for high sulfur coal. The Economics of Magnesium Metal, 1985, Roskill Information Services Ltd., 2 Clapham Road, London SW9 OJA England, 129 pp., 71 tables, appendices, bound, $750-Despite setbacks in some major magnesium markets in 1985, Roskill's latest forecast for the last half of this decade is for a 4% to 6% annual growth rate in demand. Growth for magnesium metal is expected in the motor industry for use as a possible substitute for aluminum. Some magnesium producers are altering their marketing strategies to cultivate this market. This study also includes a review of the worldwide magnesium industry, its end uses and consumption, and international trade and price trends.

Jan 7, 1986

By Tim Neil, O&apos

Acid rain legislation, the new tax package, excess coal capacity, the effects of low oil prices, how to increase coal exports: These were among the items discussed at the May 4-7, American Mining Congress coal convention in Pittsburgh. Some 2000 people attended the convention, which also offered 15 technical sessions. As always, the state of the domestic coal industry might be characterized as "long-term promise, short-term problems." And one of these problems is acid rain. Acid rain The proposed acid rain legislation in Congress could be the most costly piece of environmental legislation ever written. In its present form, the measure could cost the nation up to $110 billion over the next 15 years. Rep. Henry Waxman's (D-CA) bill, HR 4567, would mandate large reductions in sulfur dioxide emissions from coal-fired power plants. The bill has more than 150 Republican and Democratic cosponsors. Ed Addison is president of the Southern Co., one of the nation's largest utilities and users of domestic coal. Addison noted that America's electric utility industry buys and uses nearly 85% of the coal consumed in this country. He said Waxman's bill would drive up prices of low-sulfur coal, raise electric rates, and force miners out of work in high-sulfur coal regions. In repeating a standard coal industry response, Addison said the Clean Air Act is doing the job. In recent years, while coal use has gone up, S02 emissions have gone down. Current air pollution standards are producing cleaner air, he said. Despite concern over HR 4567, the bill's future is uncertain. Several coal industry executives and analysts predict the bill will die under weight of opposition from coal, utility, and steel interests. But the acid rain issue is gaining momentum. Future legislation of some kind is likely. Meanwhile, research continues to develop clean coal technology to deal with the S02 problem. Commercialization of these front-end technologies currently lags public sentiment for acid rain legislation. Ground water runoff and contamination is another area where future legislation would seem likely. Already, one bill has been introduced in Congress. A second is being drafted. The impact of such legislation may be significant according to Bruce Leavitt, a hydrogeologist with Consolidation Coal Co. He said if current proposals are adopted, there will be more federal, state, and local government involvement in ground water regulation. In any event, the coal industry can expect to see more emphasis on preventing acid mine drainage and on water replacement, according to Leavitt. He urged those in the coal industry to present information about mining and ground water. That is needed to prevent misdirected state and federal programs, he said. Another coal industry concern is excess capacity. The industry has the mines, equipment, and employees to produce 15% more coal than at present. Problem is, the markets are not there. Slower-than-predicted growth in electric utility coal use has kept sales sluggish. There are also tax uncertainties. Congress is considering repeal of the investment tax credit and elimination of black lung payments and excise taxes as deductible expenses. One analyst estimates the coal industry would lose $1.1 billion in five years, if the changes are approved. In addition, there are the usual concerns about excessive governmental regulations involving safety and environmental matters. Bill Kegel, for example, said these regulations mean extra costs and delays in developing mines. Kegel is president and chief executive officer of the Rochester & Pittsburgh Coal Co. More than half the electrical power in the US is generated by coal-fired plants. That percentage could slip by a couple of points as nuclear generators come on-line the next few years. About 1990, though, we will see the end of US nuclear plant construction. No new nuclear plants have been scheduled since 1978. So any growth in electric power use should benefit the coal industry. BethEnergy - High Power Mountain During 1985, BethEnergy - a Bethlehem Steel Corp. - subsidiary developed High Power Mountain, a 1.8-Mt/a (2-million-stpy) surface mine in West Virginia. Construction saw movement of more than 3 hm3 (4 million cu yds) of earth. A computerized 544 t/h (600 stph) heavy media cyclone prep plant and a 3.6-kt/h (4000-stph) railroad loadout facility were built in six months. And a 5.6-km (3.5-mile) railroad spur and loop bridging a major highway were constructed. Larry Willison of BethEnergy noted the project's ambitious construction schedule. It was forced by the need for the project to be market driven and - lacking available capital - externally financed. BethEnergy did several things before obtaining with Detroit Edison a market for 0.9 Mt/a (1 million stpy) of coal. Willison said his company prospected and proved the eastern half of its 8-km2

Jan 7, 1986

By Richard Addison

Introduction A staccato beat rings out across the Australian bush. The stamps are at work, slowly pulverizing gold-bearing ore for a patient, grizzled prospector. This is the State Battery near Marvel Loch, a tiny 22.6-t/d (25-stpd) capacity gold plant operated by the Western Australia government. It is one of many such plants located in remote corners of Western Australia and the Northern Territory. They are miniature custom mills operated for the benefit of prospectors and small mine operators. These state batteries are so called because they are operated by state governments and because the principal item of machinery in the plants are stamp batteries. They are fascinating anachronisms - throwbacks to times past, a century ago, to the hard and heady existence of gold rush days. Marvel Loch plant Typical of these operations, and perhaps a trifle more sophisticated than most, is the plant near Marvel Loch, a small center for mining and farming about 400 km (250 miles) due east of Perth. Marvel Loch. The name evokes visions of a pristine lake set in a cool, green, misty glen of the Scottish highlands. Actually, it is probably a hot, dry salt pan somewhere nearby. Just where the "loch" is difficult to discern. There is no sign of it on the map.

Jan 7, 1986

By David G. Adam

Introduction Syncrude Canada Ltd. is the operating company for a consortium of industry and government participants that produce synthetic crude oil from their leases in the Athabasca Oil Sands. Production from the $2.3 billion (1978) integrated mining, extraction, and bitumen upgrading and utility complex started in September 1978. Production is currently about 6.4 Mm3/a (40 million bbl per year) of high quality synthetic crude oil. This is done by upgrading the extracted bitumen from the oil sands mined. Plans are to increase the production to 8 Mm3/a (50 million bbl pier year) by 1989. At that time, the mining operation will be required to deliver 100 Mt/a (110 million stpy) of oil sand (ore) to the extraction plants, and handle quantities of waste ranging from 50 to 75 Mt/a (55 to 83 million stpy). The Syncrude plant is located at Mildred Lake, 40 km (25 miles) north of Fort McMurray and 480 km (300 miles) north of Edmonton, Alberta. Climate, particularly winter, is therefore a major factor affecting the design and operation of all the Syncrude production facilities. Bitumen production, consisting of overburden removal, oil/sand mining, bitumen extraction, and tailings disposal, account for about half the total SCO production costs. Considerable research and development, therefore, continues to be applied to improve both material handling and bitumen recovery methods. Potential applications for feeder breakers were identified in the material handling aspects of both overburden and oil sand mining to reduce cost and to attain planned production increments. Overburden removal Overburden materials on the leases comprise thin Pleistocene sands, gravel and fill, and sands, silts and clays of the thicker Clearwater Formation with the silt to clay components predominating. The latter contains multiple leases of hard siltstone with unconfined compressive strengths up to 148 MPa and thicknesses up 0.1 to 0.9 m (1 to 3ft). Characteristics of the overburden as well as the climatic environment and scale of operation present unique problems for the efficient removal of the material. In a bucketwheel/conveyor system, the weak silty clay formations require relatively flat working slopes for safe operation, while the siltstone lenses and frozen overburden require blasting or selective removal by other equipment. These factors, combined with the normal bucketwheel/conveyor design parameters, lead to high capital investment and relatively inefficient use of that capital. Hydraulic mining alternatives, including dredging, are constrained by severe clay settling problems in the waste disposal

Jan 6, 1986

By Frigyes Egerer, Pál Bárczy

Introduction Charles III, Holy Roman Emperor and King of the Austro-Hungarian Monarchy, established one of the first mining schools in Europe on June 22, 1735, in Selmecbanya (Schemnitz in German and Banska Stiavmica in Slovakian). The old city, built around the ancient gold mines, is shown in a contemporary engraving in Fig. 1. Charles' historical decree consisted of 13 chapters and included: the deed of foundation, the definition of grants, instruction for educational policy and curriculum, disciplinary rules, and the appointment of personnel. The first professor of the school, Samuel Mikoviny, gave his first lecture the same year, in December 1735. The 250th anniversary of the establishment of the School of Mines was celebrated Sept. 2-4, 1985, in Miskolc. It was attended by representatives of other Hungarian and of several foreign technical universities. A silver medallion (Fig. 2) was issued to commemorate the occasion and a series of lectures

Jan 6, 1986

By I. Iwasaki

There are many reasons why the US mineral and primary metals industry is in its present state. Undoubtedly, a flood of imported goods in all sectors is playing a major role in the plight of our raw materials industry. Domestic industry is becoming increasingly aware of the importance of its international competitiveness. And we are beginning to wonder what is happening to our technological edge. A number of factors affect the international competitiveness. Engineers cannot do much about some of these factors - labor costs, tax policy, government relations, interest rates, dollar strength, and labor-management relations. Something can be done about technology, however. Some say technology is so easily transferable today. But I would like to believe that we have the ability to apply it better than others. Not too many years ago, "made in Japan" meant cheap and shoddy products. Today, Japan has completely changed its image. The US is beginning to feel the threat from Japan's low-cost, defect-free products with dependable delivery. With worldwide recession and the strength of the dollar, we were shocked at the sudden weakness that developed in America's industries, not only in the international market, but domestically as well. What went wrong and what can we do about it? Senior executives from 300 large American manufacturing companies were surveyed. These executives believe US companies must: • invest in more efficient plants and equipment (27%); • invest in more research and development (23%); • improve the quality of service to customers (23%); and • adopt more aggressive marketing tactics and strategies (14%). Are we not doing enough research? The US has nearly four times as many people engaged in research and spends four times as much for research as Japan (Fig. 1). There is little doubt about the excellence of the US performance in basic science as indicated by the number of Nobel prize recipients. Japan has produced only four winners since World War II. Look at technology trade of five countries (Fig. 2). Again, US performance has been remarkable. An interesting observation here, is that the United Kingdom, another country with economic woes, is also in the black, West Germany and Japan, both with trade surpluses, are net technology importers. It is apparent that the US' performance in the commercialization of new knowledge is much more in question. Japan had $50 billion of trade surpluses with the US last year, which led to some friction between Washington, DC and Tokyo. Comparing the technology trade of Japan and the US in more detail, Japan imports disproportionately large amounts of technology from the US and Europe. This data is rather old, 1978, but the general trend is not too different even today. It is generally believed that scientific research leads to innovative technology, then to economic payoff. But, after seeing the current technological challenge by Japan, we are forced to change this traditional view. Investment in research may eventually lead to economic payoff, but not directly. There is a middle ground between new knowledge and its commercialization. This is an area where the Japanese have been successful. Until the 1970s, many western companies licensed patents to Japan for quick profits. But, in recent years, these companies have become more discrete about the terms of technological transfer. As a result, a number of scientists and engineers are expressing deep concern over the future of technological developments in Japan. A survey was conducted on 450 research managers of private industries in Japan on how they viewed the level of breakthroughtype original research in Japan as

Jan 6, 1986

By Gregory D. Savage, Bruce M. Everett

Introduction The growing role of Colombia as a major supplier of internationally traded steam coal has been widely discussed in the industry. Although Colombian coal has been produced and exported in small quantities for a number of years, the country's position as a major coal exporter began in earnest in 1985 with the first commercial exports from the Cerrejon North Block Project. The mine is located on the Guajira peninsula in northeast Colombia, about 145 km (90 miles) from the coast (Fig. 1). In addition to the mine itself, the project involves construction of a dedicated railroad and port. This forms a modern, efficient, and integrated system. The project is embodied in a 50-50 association contract between International Colombia Resources (Intercor), a wholly-owned subsidiary of Exxon, and Carbocol, the Colombian state coal company. Intercor and Carbocol share investment and operating expenses equally. Intercor has the additional responsibility of managing operations on behalf of the partners. Each partner is entitled to 50% of the coal produced, and each markets its share separately. The project is a multi-seam, truck and shovel operation, based on large reserves (2 to 3 Gt or 2.2 to 3.3 billion st) of high quality bituminous coal. Exports began in the first quarter of 1985, at modest levels through what is called Early Coal Facilities. The permanent coal handling system began operation in February 1986. Production will increase rapidly in each of the next few years, reaching the design capacity of 15 Mt/a (16.5 million stpy) in 1989. Based on available resources, however, the resource will support expansion, and continued growth in production into the 1990s is feasible. Importance of transportation The success of a new coal export venture, such as Cerrejon, depends heavily on efficient transportation. In the international coal industry, overland and ocean transport can in some cases account for 40% to 50% of the final value of the product. Many coals, such as western US subbituminous coals, cannot reach export markets at all because of their low heat content and great distance from export markets. By the same token, low-grade resources are often commercially attractive for local markets even in the face of competition with much higher quality coals from distant sources. Figure 2 shows the growth in steam coal imports into Europe, the largest trading market. Through

Jan 6, 1986

By E. M. Spokes

A.B. Rushton The work and resulting publications of the Committee on Underground Coal Mine Safety and The President's Commission on Coal were appropriate at the time of publication. The statistics cited in the publications appeared to be valid, and the actions proposed by the committee had merit. Although the actions proposed to achieve further improvements in safety may have been worthy of repeating, to associate statistics (Table 1) that are seven to eight years old with company names is bad. Statistics are readily available from the Mine Safety and Health Administration (MSHA) and are usually within three months of being up to date. A review of the most recent Coal Controlling Co. Report will reveal significant changes in the rankings. The more recent statistics should have been cited, or at least compared with those used in the article. Westmoreland Coal Co. is listed as having a 21.1 disabling injury rate for the period (1/78-12/80). The disabling injury rate for the Company for the year ending 1985 was 7.4 for the underground mines and 6.25 for the total facilities. Through March 1986, the disabling rate for the underground mines was 2.86. The management and employees of Westmoreland Coal Co. are committed to safety. The improvements achieved over the past five years attest to that commitment. We are justifiably proud of the achievement and dislike being misrepresented as in the April 1986 article. Reply by E.M. Spokes I regret that the lapse of time since the original work gives a picture of safety practice that is no longer true today. That Westmoreland has reduced its disabling injury rate by 65% to 7.4 in 1985 is most commendable, and I congratulate you for this accomplishment. It is typical of the progress sought by the National Academy of Science and National Research Council when they funded the original study and published "Toward Safer Underground Coal Mines" in 1982. If a significant number of companies do as well as Westmoreland, the report will have served its purpose. Since the paper was primarily a condensation of the original report, it would not have been appropriate to seek access to later statistics. The purpose in seeking its publication at the time of presentation was to reach those who might have missed the original report. The fact that publication was delayed has not voided that purpose and may have reminded some who were aware of the original that its recommendations still apply to improvement of underground coal mine safety.

Jan 6, 1986

By E. D. Attanasi, J. H. DeYoung

Several factors contributed to continued declines in mineral-exploration activity in the US in 1985. Low metal prices and, what appears to be worldwide chronic excess capacity in copper, molybdenum, lead, and uranium, have resulted in mineral-exploration expenditures remaining anemic. Economic recovery could result in a healthier mining industry and more cash flow to fund exploration. This is because general economic activity and US mining industry activity have historically been closely linked. However, as the worldwide economic recovery has expanded, the mining sector has continued its downward slide. New cuts in industry exploration budgets in 1985 shocked those who thought the exploration situation could not become worse. Some personnel and equipment had been redirected from base metals exploration to precious metals in the past few years. Last year, continued reductions in exploration sent many professionals out of the mining industry. Recent staff reductions or consolidations of operations were made by Noranda, Chevron, Molycorp, and other exploration companies. The latest data from the Society of Economic Geologists (SEG) summary of exploration statistics show that professional staff at year end in major US exploration companies (domestic and foreign operations) fell from 2355 in 1981 to 1868 in 1983 and 1277 in 1984. By the end of 1985, two economic trends were established that could improve the future profitability of mining and hence exploration. First, the price of crude oil began a decline. If sharply reduced energy prices increase worldwide economic expansion, the substantial excess capacity in some of the base metals industries could disappear, and prices could improve. Furthermore, if energy price declines reduce mining and processing costs significantly, metals may recapture some lost markets. The decline in oil revenues has already encouraged some oil-producing countries, such as Venezuela, to look toward development of mineral resources to earn foreign exchange for debt repayment. Second, the decline of the dollar by 21% during 1985 could also help US producers meet foreign competition. During 1985, industry restructuring continued as many oil companies sold off mining subsidiaries and minerals properties. Gold, silver in new discoveries Precious metals continued to dominate the announcement of new discoveries and exploration projects in 1985. A review of domestic exploration and development activities reported in several industry journals shows that 60% to 80% of these projects were directed primarily at precious metals, particularly gold. Base metals exploration activities frequently involved polymetallic deposits with gold or silver values. Because much of this exploration was done on identified targets (on-property exploration), the decrease in wildcat or grassroots (off-property) exploration may be more substantial than indicated by reductions in total exploration activity. Significant gold discoveries in 1985 included several in Nevada, among them the Genesis property of Newmont (near the Carlin mine), Goldfields' discovery of the Chimney deposit in Humboldt Co., and Freeport's discovery of two mineralized sites near Jerritt Canyon. Gold exploration continued to be focused in the western US and Alaska, but gold production starts at the Haile mine in South Carolina, and the Ropes mine in Michigan as well as Amselco's feasibility studies on deposits near Ridgeway, SC, are evidence that gold exploration is not limited to the West. The dominance of gold projects in exploration is not limited to the US, as demonstrated by gold dis¬coveries and exploration projects in Australia, Brazil, Canada, the Caribbean region, China, Guinea, Ivory Coast, South Africa, the South Pacific islands, and Thailand. From the standpoint of US metal miners, it is perplexing that worldwide exploration and development is also taking place in copper, zinc, tungsten, and other metals with depressed prices. During 1985, the US Geological Survey's efforts to map the sea floor of the Exclusive Economic Zone shifted from the Pacific Coast to the deep water areas of the Gulf of Mexico and to areas off the coast of Puerto Rico and the Virgin Islands. An atlas containing sea-floor maps of the west coast area was published as US Geological Survey Miscellaneous Investigations Series Map 1-1792. Results of the 1985 surveys are expected to be published by January 1987. Exploration trends - Statistical evidence Data from the SEG showed continued decline in the US mining industry's exploration expenditures through 1984. The share of US companies' domestic exploration expenditures directed toward base and precious metals has increased from 51% to 84% from 1980 to 1983 and to 86% in 1984. US mining companies spent about $0.67 of each exploration dollar in 1984 in the US. However, this represents an increase from earlier years. The 1983 data also show that firms spending more than $5 million on exploration accounted for 77% of exploration expenditures. Since 1981, the Bureau of Land Management (BLM) has been assembling data on claims and an-

Jan 5, 1986

By C. Heath

US coal consumption reached new heights in 1985, but production was constrained by excess consumer inventories. Domestic consumption of coal reached a record 742 Mt (818 million st) during the year. This is a 3.4% gain over the previous consumption high 718 Mt (791 million st) in 1984. An additional 84 Mt (92.7 million st) of US coal were shipped abroad in 1985, up 13.7% from exports a year earlier. Coal production in 1985 totaled 804 Mt (886 million st), 1.1% below the record 813 Mt (896 million st) produced in 1984. The slight decline in coal output is attributed primarily to a 13% drawdown of large consumer stockpiles built up in 1984 in anticipation of a miners strike that never occurred. Coal demand, and hence production, were also restrained by slower economic growth in 1985 and additional gains in nuclear generation of electricity. Domestic market requirements for coal in 1985 were mixed. Electric utility consumption rose 4.4%; coke plants consumed 6.7% less coal; coal requirements in the other industrial sector expanded by 2.1% and consumption in the residential and commercial sector fell 14.8%. The 2.2% increase in electric power generation in 1985 resulted in a 4.4% rise in utility coal consumption, totaling 630 Mt (694 million st) for the year. Twenty-nine of 45 states where coal-fired electric power plants were operating shared in the 26.7 Mt (29.5 million st) increase in 1985. Coal receipts at utilities fell by 16 Mt (18 million st) as these facilities worked off 21 Mt (23.4 million st) from stockpiles during the year. Electricity generation at coal-fired power plants similarly climbed 4.4% to 1.4 trillion kWh in 1985. This gave coal a 56.8% share of electricity generated from all energy sources compared with 55.5% in 1984. The average price of coal delivered to these facilities remained essentially unchanged during the year. It declined on 1.5% from $38.26/t ($34.71 per st) during the fourth quarter of 1984 to $37.70/t ($34.20 per st) in the fourth quarter of 1985. Coal consumption at coke plants continue to reflect a depressed steel industry. After rebounding 18.9% in 1984 for the first time in five years, coal consumption at coke plants again declined 6.7% to 37 Mt (41.1 million st) in 1985. Coke consumption 26.5 Mt (29.3 million st) exceeded production, 26 Mt (28.7 million st), in 1985. This resulted in a 1-Mt (1.2-million st) decline in coke stocks at producer and distributor levels during the year. The average price of coal delivered to coke plants decreased 7.6% from $64.30/t ($58.34 per st) during the final quarter of 1984 to $59.42/t (53.91 per st) in the last quarter of 1985. Coal consumption in other industries, including all manufacturing and industrial consumers except coke plants, totaled 68.3 Mt (75.3 million st) in 1985. This was the highest level attained in more than a decade. But the lower percentage rise last year (2.1% compared to 11.8% in 1984) reflected slower growth in the nation's economy in 1985. The average price of coal delivered to industrial firms declined 4.5% from $42.32/t ($38.39 per st) in the fourth quarter of 1984 to $40.39/t ($36.65 per st) in the last quarter of 1985. Coal-producing states in Appalachia mined 9.8 Mt (10.8 million st) tons less in 1985 than in 1984 for a 2.4% loss. The largest contributors to the region's production decrease to 393 Mt (433 million st) were Pennsylvania, down 14.7% to 60 Mt (66 million st); Ohio, down 8.3% to 32.6 Mt (36 million st); and West Virginia, down 2.9% to 115 Mt (127 million st). Conversely, eastern Kentucky production was up 4.8% to 111 Mt (122.8 million st) in 1985, while production in Tennessee climbed 9.7% to 40 Mt (44 million st). No coal was mined in Georgia last year. Coal production in the interior region in 1985 declined 3.9% to 173 Mt (190.4 million st). Substantial production losses occurred in Indiana, down 8% to 31 Mt (34.5 million st); and in western Kentucky, down 7.9% to 36 Mt (40 million st). Coal production in Texas rose 5.7% to 39 Mt (43.5 million st) in 1985. Louisiana began mining lignite 140 kt (151,000 st) during the year. Production in the western region increased 3.4% to 238 Mt (262.5 million st) in 1985. Wyoming, up 5.3% to 125 Mt (140 million st); and North Dakota, up 16.5% to 23.5 Mt (26 million st) contributing the largest amounts. Production gains were also shown in Washington, Utah and, notably, in Alaska where coal output climbed 72.9% to 1.3 Mt (1.5 million st) in 1985. Most of the additional coal produced in Alaska last year was shipped abroad. Coal stocks held by consumers totaled 154 Mt (170 million st) at the end of the year. This was 27 Mt (30 million st), or 13.7% below the inventory level at the end of 1984. Stocks held by producers and distributors declined by 868 kt (957,000 st), or 2.8% in 1985 to 30 Mt (33 million st). A drawdown in stockpiles occurred in each consumer sector during 1985. Stocks held by electric utilities totaled 142 Mt (156 million st) at the year's end, 13% lower than stock levels at the end of 1984.

Jan 5, 1986

By R. C. Richardson

Barite Worldwide barite production for 1985 decreased 1.3%, while US barite production increased 1.4%, according to US Bureau of Mines statistics. The increase in US production is attributed to heavy demand for oil and gas drilling during the first quarter and an unrealized heavy expected demand in oil and gas markets for the last quarter. Nevada accounted for 82.1% of the 807 kt (890,000 st) of barite produced in the US last year, according to the Bureau. Other producing states were California, Georgia, Illinois, Missouri, Montana, Tennessee, and Washington. In 1985, the US imported 1.8 Mt (2 million st) of crude barite and 64 kt (71,000 st) of ground barite. China led the way with 43.3% of the total. Imports from India accounted for 21.6%; Morocco, 15.5%; and Thailand, 5.6%. The 1.8 Mt (2 million st) of crude barite imported is an 18.8% increase over 1984. Apparent consumption of barite for 1985 was about 2.6 Mt (2.9 million st), a 15.7% increase from 1984. Due to very low drilling rig activity during the last quarter of 1985, actual consumption is probably less as crude barite inventories at mines and plants increased. According to the Bureau, 90% of barite consumed in 1985 was for the oil and gas market. Paints, rubber, glass, and other chemical uses consumed the other 10%. With the price of oil falling dramatically early in 1986, the outlook for oil and gas drilling looks to be significantly lower than 1985. This lower demand for barite, coupled with the high year-end inventories, should lower both imports and domestic production. Significant lower prices on imported barite are expected, especially from China, Morocco, and India. This also could further lower US production of barite this year.

Jan 5, 1986

By J. D. Morgan

Demand for nonfuel minerals depends in large measure on economic activity, which rose in each quarter of 1985. However, despite 1.7 million new housing starts and a 7% increase in motor vehicle production, many domestic metal mining operations experienced continued difficulties as a result of import competition, greater use of newer engineered materials, emphasis on multi-unit housing, and downsizing of motor vehicles. Recognizing the continued difficulties of the domestic metal mining industry, many corporations made major efforts to retrench and rationalize - selling, closing, or spinning off less profitable operations, renegotiating labor contracts, and inviting increased participation by foreign firms. About 15% of US energy was imported in 1985. This included $52 billion worth of crude oil and refined products, adding significantly to the overall merchandise trade deficit of $149 billion. With the exception of a few large-bulk, low-value raw materials, most minerals move relatively freely in world trade. The strong dollar encouraged imports and made exporting more difficult US nonfuel minerals trade deficit totalled $17 billion. The US continued to rely on imports for many important strategic minerals in 1985 (see accompanying Table). Increased pressures for protection included major mineral products such as steel, ferroalloys, and copper. But President Reagan, in his Feb. 1986 "Economic Report to the Congress" stated: "Our international trade policy rests firmly on the foundation of free and open markets." He also stressed the need for fair trade and more open markets internationally. The National Critical Materials Council, created by law in the latter part of 1984, was activated in the latter part of 1985. Its first public hearing was held in January 1986. The Council is to review the nation's materials posture and advise the President on such matters. Compared with 1984, the value of US raw nonfuel mineral output rose 2%, to $24 billion. This supported the production of $244 billion worth of processed materials of mineral origin. Raw steel production - a major indicator of both material use and mineral production - fell 4% to 81 Mt (89 million st). Consequently, domestic iron ore production fell to 49 Mt (55 million st), about 97% pelletized. Iron ore imports fell 7% to 16 Mt (18 million st). Raw steelmaking capacity fell 4% to 117 Mt (129 million st). Pacts with 16 leading steel exporting nations have been negotiated in an effort to reduce import penetration of the domestic market. Domestic producers of bulk ferroalloys of chromium, manganese, and silicon operated at about 40% capacity. The US mined no manganese or chromium. Only a small quantity of ferronickel was produced from domestic laterite mining in Oregon. Molybdenum production increased slightly to 49 kt (54,000 st). Mine shipments of tungsten, another mineral tied to steel production, also fell slightly to 1.1 kt (1200 st) of contained metal. Even the domestic aluminum smelting industry suffered reverses as high stocks and low prices reduced production 16% to 3.5 Mt (3.8 million st). Similarly, imports of bauxite fell 7% and alumina 10%. Production of magnesium metal fell 6% to 136 kt (150,000 st), while titanium metal production remained unchanged at 22 kt (24,000 st). Copper mine production was unchanged at 1.1 Mt (1.2 million st). Copper refinery production fell slightly to 1.1 Mt (1.2 million st). Lead mine production rose 24% to 400 kt (440,000 st). Zinc mine output was down 10%, to 225 kt (250,000 st). Refined lead production increased 28%, to 510 kt (560,000 st). Primary slab zinc production fell 5% to 240 kt (260,000 st).

Jan 5, 1986