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By Robert Bottge

When a company develops a mineral property in a remote area of Alaska, it must consider how best to house its personnel. This Bureau of Mines report examines the economics of two options: company towns and company camps. The price required to maintain a 15% discounted-cash-flow rate of return (DCFROR) was derived for hypothetical 1,000-st/d cut-and-fill mines and 50,000-st/d open-pit mines located in three different regions of the State, One set of hypothetical mines utilizes a townsite; the other utilizes a relatively new concept, a fly-in camp or commuting operation, in which two shifts of employees operate the mine and all associated facilities for 1 week before being replaced by a second crew. The study shows that operating costs were higher for mines employing the commuting option than for mines having a company town because of the additional wages paid for overtime hours; however, the price required to obtain a 15% DCFROR for the single-product copper concentrate, f.0.b. the mill site, was significantly lower owing to the lower investment costs for the camp-type operation. The economic advantage for those mines utilizing the camp increases from south to north and from the coast toward the interior.

Jan 1, 1986

In 1984/85 financial year Australia produced 529 thousand barrels per day (kbd) of crude oil. By far the major contribution (453 kbd) was light waxy oil from offshore Gippsland, Victoria. When these discoveries were made in the latter 1960s, imported oil was available in abundant supply and at low prices. Because of this, the Gippsland producers persuaded Government to control the marketing and pricing of their crude, and thus provide the required security of offtake. Political events in the middle East created supply shortages during the 1970s, and dragged up government selling prices for OPEC crude oil. Thus Arab Light crude that sold for less than US$2/barrel (bl) in 1970 reached $34/bl in 1981. Following the consequent decline in world oil demand, in 1982, Australian refiners sought to evade their obligation to lift Gippsland crude. Hence, in 1983, the Government was forced to introduce a floor quota of 385 kbd of Gippsland crude liftings and to allow producers to export any additional production refiners did not require. On expiry of the old arrangements, Government introduced a partial free market from January 1985, whereby the balance in excess of 350 kbd may be sold to Australian refiners at negotiated prices, or exported as before. In 1984/85 exports were some 90 kbd and will be higher in the current year. About half this total has been exported by BHP, providing valuable experience and lessons which are described in the paper.

Jan 1, 1986

International tenders for contract mining opportunities require the Contractor to make an assessment of risk for an operation with a life span of up to twenty-five years usually based on data made available by the Client. This paper seeks to address how the Contractor assesses the data and quantifies the risks associated with the project. The areas of risk are common to most projects, but in the--Lontractor's case, risk assessment is carried out on the Client's data base and within a compressed time frame of usually less than six months. Incorporation of that risk assessment into the contract documentation is also discussed. Practical examples are given in a number of areas.

Jan 1, 1986

By P. D. Waters

"Mineral deposits are where you find them; they have no allegiance to territorial boundaries. Over the past decade much of the new investment in mining has been outside of continental North America, let alone Canada. The larger Canadian Banks have pursued this offshore business through their multi-national organizations; this reflects both the increasingly international orientation of today's business environment, and to a degree, the competitive advantage of these offshore developments.The current oversupply situation in mineral markets and the increasing maturity of the Developed World Economy reduces the need for new mining projects relative to growth' in GNP. Those that are brought on stream in the future due to their competitive advantage, will continue to be pursued by lenders and equity investors alike. IntroductionProspects facing those who search for mineral wealth were described rather well more than 200 years ago by a Scottish professor of moral philosophy, who also happens to be the father of modern economics.In search for new mines, Adam Smith wrote in The Wealth of Nations, ""there seems to be no certain limits either to the possible success or to the possible disappointment of human industry"".How true that statement remains today, where we are seeing economic cyclical problems compounded by basic fundamental structural change within the mining industry.Despite the enormous advances in earth sciences during the past two centuries, the rewards of mineral exploration still remain uncertain. Even though a promising orebody is found, ultimate profitability may still depend on the vagaries of the marketplace, where large and unanticipated changes in supply, demand and prices can play havoc with the best of calculations.The Canadian mining industry has had its share of disappointment during the past few years, with savage competition, shrinking demand, declining prices, and disappearing profits. But it has also had some share of success, such as at Hernlo, which now seems certain to provide some of the lowest cost gold production in the world"

Jan 1, 1986

By Lawrence S. O’Rourke

Pricing for tantalum raw materials experienced explosive increases in the period 1978-1979, and-similar declines over 1980-1982. The causes for this are examined. Negative effects on the industry are highlighted. Analysis is provided of subsequent structural changes within the industry which minimize probability of future pricing excursions. Data on markets, sources of material, and outlines of concentration and extractive processes are reviewed. The conclusion is reached that expanded sources, future flat demand, and a broader international base of industry participants are principal forces in this restructure. Flat demand is reviewed as a function of increasing application of tantalum, but in more cost effective forms. This is driven by technical advance, notably in electronics applications.

Jan 1, 1986

By Ted Schwinden

It's my pleasure to welcome the Rocky Mountain Coal Institute to Montana. Now that you've ended a 74 year history of meeting outside our borders, I hope you'll be back more often. Even if I can't convince you to come back before 2060, when another 74 years will be up, I'm confident the Kalispell and Flathead Lake area will do the persuading for me. In recent weeks, I've made a number of speeches around the state pointing out just how wrong the revenue projections in Montana's state government made in April of '85 were when we came to April of '86. Since the middle of this month, Montana's legislators have been in Helena struggling to balance a state budget that, by the end of fiscal year '87, threatened to be some $88 million in the red. Other western states reliant on natural resource and agricultural economies have found themselves caught in the same deflationary spiral. The "window of opportunity" I proposed and the 1985 Montana Legislature passed, couldn't have been opened at a more difficult time. What was envisioned as an incentive to expand Montana's coal production, and our tax base, ran aground on low oil prices and excess hydroelectric power. De- spite the one-third severance tax rebate offered on new coal production, year-to-date figures published in the June 2nd Coal Week show that production in Montana is down almost 10 per- cent from last year. Again, we're not alone. Production in Wyoming is down 8 percent and in North Dakota, it has dropped 13 percent. An over- all 3 percent production decline in western states looks even worse when contrasted against a 12 percent increase for your eastern competitors. Montana's "window of opportunity" had the potential to be a significant signal to your industry. That potential was quickly tempered by the inability of Arab nations to stabilize world energy prices. If any of us had forgotten, the last twelve months have reminded western states that the well-being of our natural resource economies has a tremendous impact on the ability of all levels of government to provide services. The past year has also driven home that in the world of business and in the business of the world, risk-taking is still the name of the game. The Western Governors recognize the problems facing this industry - and our states - and we're prepared to fight for the future of western coal. In the past two decades, legitimate environmental concerns have created a vast body of new legislation affecting coal producers. The industry has been required to meet new reclamation standards - tough regulations relating to ground water, air quality and wildlife habitat. To the industry's credit, coal companies have hired professionals with the technical know-how to do it right. Rather than considering reclamation laws to be an unreasonable burden, today's coal company is more likely to view its reclamation efforts as a source of corporate pride. In a sense, the industry and the agencies which regulate it have matured together . . . although at times OSM is reluctant to admit that either of us capable of or willing to play by the rules. Certainly some abuses exist and OSM's oversight has been helpful in ensuring parity between those states willing to comply and those that would rather defy federal law. Nonetheless, penalizing the more modem and responsible western coal industry for abuses that occur elsewhere is both unfair and counterproductive. Federal penalties range from "cruel and unusual" reporting requirements to the proposed electricity tax that would effectively force utilities and ratepayers who have already met the sulphur emission standards to subsidize those who have dodged their cleanup responsibilities. As a member of the Alliance for Acid Rain Control, I have joined corporate leaders, academicians, environmental representa-

Jan 1, 1986

By Alan R. Buehler

A mineral survey of the 67, 110-acre Raven?s Eye WSA (Wilderness Study Area) in the north-central Snake River Plain of Idaho was conducted by the U.S. Bureau of Mines in 1985, at the request of the Bureau of Land Management. The WSA is in Blaine and Lincoln Counties; the northwest corner is about 1 mile east of Carey, 10. A search of county mining claim records indicated that no claims have been located in the WSA. Basaltic lava is the only rock type exposed within the WSA. A platy variety of lava (slab pahoehoe) occurs that is produced from other lava fields in southern Idaho. The material is marketed as decorative stone, used for wall veneers, and retails for approximately $125/ton. Within the W5A, approximately 18,000 tons of indicated reserves are concentrated in two areas, and a total of 12,000 tons of indicated subeconomic resources were found at six other localities. An additional 10,000 tons of inferred subeconomic resources are unevenly distributed over the remainder of the WSA.

Jan 1, 1986

By Erwin L. Zodrow

"IntroductionThrough an extensive coal sampling project in the Sydney coalfield of Nova Scotia during 1981 - 1984 involving a majority of the mineable coals (Zodrow, 1985, Fig. 1), a sizeable inventory on trace, minor and major metals was established. In this paper, results of studying the inventory are summarized, concentrating mainly on the relationship that exists between metal variations and thickness of coal channel samples (i.e. trends) and on explaining the trends in geochemical and sedimentological terms. As an over-all conclusion the Everglades peat of Florida is proposed as a modern-day analogue to Upper Carboniferous peat swamp development that took place in the Sydney Basin.Data InventoryFor this study 17 channel samples were cut , 8 cm to 14 cm channel width and 8 cm to 10 cm depth, from 10 successive coals which in stratigraphically descending order are as follows: Point Aconi (3), overrider Lloyd Cove (2), Lloyd Cove (2), Stubbart (2), Harbour (4), Backpit (I), Phalen (,I), Shoemaker (1) and McAulay (I), where bracketed values signify the number of channel samples cut from a seam (Zodrow, 1985, Fig. I). Each channel sample was subdivided by 15 em incremental length yielding a total sample size of 137 for analysis. By appropriate modern techniques these samples were analyzed to determine concentration levels for 32 chemical elements and ash content, the average results of which are presented in Table 1.Tests were also made for Pd, Pt, Ga, Nb, Cd, Cs, Sm and W but their concentration levels in many instances hovered on the lower detection limits that were used and on this accounts are excluded from discussion. Ashing, when necessary for the determination of concentration levels, was done for 12 hours at a temperature not exceeding 450°C. Concentration levels for the elements are reported in reference to whole-coal or whole-coal equivalents and discussed on this basis. In the course of the analyses, lower detection limits received careful attention."

Jan 1, 1986

By Lloyd F, Arnold D. A, Hagan T. O

This paper investigates the problems that are encountered in mining at extreme depths. It looks into the rock mechanic aspects, especially the high stress levels that will occur, and the hazard of rockbursts. Furthermore, environmental problems are discussed, with refrigeration and reduction of neat loads being major methods of maintaining ,sorkable conditions. The paper concludes that it will be of tmost importance to have a planning team of Tne highest quality to ensure that conditions are maintained so that work can be carried out safely and under reasonable conditions.

Jan 1, 1986

By Wright JK, Turner RE, Batterham RJ, Morrison AL

Simulation can play an important role in the design, optimization and control of complete industrial processes, the most appropriate method depending on the particular application. Most commonly, process models or simulators are means of representing the process which are either purely mathematical or physical. Mathematical models, however, almost invariably need to be based to some extent on experimental data or require experimental verification before they can be used with confidence. Ways in which experimental and mathematical modelling techniques can be combined to best effect are discussed, with reference to the simulation of iron ore induration and direct reduction processes. A novel method is presented for the simulation of direct reduction shaft furnaces. Small scale apparatus has been developed in which ore or pellet samples are subjected to the changing environment of the industrial process. The time dependent conditions (solid temperature and gas compositions) are provided by a mathematical representation of heat transfer and the conservation of mass and energy in the process Simulated.

Jan 1, 1986

By Brotzmann K, Turner RE, Philp DK, Rusden RC

New approaches in the last decade have led to the supplemental use of raw coal as a direct energy source in several iron and steelmaking processes. The dependence on more expensive coke and electricity is being progressively reduced. The Technology Venture of Klockner Werke and CRA has pionered several of these developments and is pushing ahead to processes for scrap melting and direct smel- ting of iron where coal is the ONLY energy source. Such complex developments depend strong- ly on the experience gained in the simpler but related processes for coal use already in operation. The longer term implications of a successful coal-based direct smelting process for the world steel industry are substantial.

Jan 1, 1986

By Lewis RW, Tullemans FJ, Gallo JB

Gold mineralization at Kidston occurs in a semicontinuous zone near the margin of a large, late Palaeozoic breccia pipe. The pipe is ovoid in plan, funnel-shaped in cross section and straddles a contact between Proterozoic metamorphic and granitoid rocks which are intruded by a swarm of late Palaeozoic acid dykes. Rock fragments within the breccia pipe reflect the enclosing country rocks and mix in various proportions to form gradational lithological domains. Most of the gold is free and is located in the breccia matrix and in a set of inwardly dipping sheeted quartz veins which kink around the pipe margin. Sulphide minerals, dominantly pyrite, occur as disseminations in the breccia matrix and as aggregates in the cores of quartz veins. Hydrothermal altLration is pervasive within the breccia and is most intense in areas with the highest percentage of acid dyke fragments. Sericite and carbonate are the main alteration minerals. An empirically developed genetic theory for the formation of the breccia pipe and attendant mineralization involves magmatic and post-magmatic processes associated with the intrusion of a granitoid body to a shallow level in the crust. Economic evaluation of the deposit relied heavily on the results of diamond drilling. Both polygonal and geostatistical reserves were calculated and found to be in close agreement. Geostatistical reserves are considered to more closely reflect the tonnes and grade achievable during mining. Daily geological mine routine is strongly biased towards grade control allied with the practical aspects of open-pit mining. Tonnage/ grade correlations between ore blocks geostat- istically generated from exploration diamond core results and ore blocks generated from high

Jan 1, 1986

By Holmes RJ, Sowerby BD, Watt JS

Major improvements have taken place in mineral and coal processing in the last decade. The development of nuclear on-line sensors that continuously analyse the material being processed has led to better control of metalliferous mineral processing and increased recovery of valuable minerals. The recent development of on-line techniques for analysis of coal is expected to be of similar Importance. Australian developments in on-line nuclear gauges are reviewed. These include systems for in-stream analysis of mineral slurries with comments on plant operating experience; on-line determination of ash in coal using low energy Y-ray transmission and pair production techniques; in-stream determination of solids weight fraction and ash content of coal in slurries with variable voidage; and on-line determination of moisture in coal, iron in high grade iron ores and sulphur in lead sinter.

Jan 1, 1986

By Neill T. J, Howarth D. F, Malcolm J. McPhersqn

For many years Isa Mine has seen the need for a continuous mining machine which will economically cut hard rock. Tunnel borers are unsuitable due to the size and inflexibility of the machine and the shape of excavation mined. The design of roadheader type machines will not permit the use of the necessary cutting technology. in 1983 a joint project was undertaken by The Robbins Company and Mount Isa Mines Limited to develop and to trial a machine suitable for cutting hard rock in an operating mine. The project was based on the proven technology of raiseboring applied to horizontal development. The Mobile Miner was fabricated and trialled in a disused quarry in the U.S.A. during early 1984. Following these trials, the machine was transported to Mount Isa and commenced mining in September that year. The initial duty was to continue the development of a decline commenced by conventional mining for a conveyor system to serve the deeper southern areas of the 1100 copper orebody. This system will permit direct tipping of copper ore to a new crusher complex and conveying of the - crushed ore approximately 2 kilometres to the central hoisting shaft facilities. The Robbins Mobile Miner MM120-3001 uses a vertical rotating cutting wheel mounted on a horizontal swinging boom to excavate a nominally rectangular shaped heading. The cuttings are collected on an apron and conveyed back through the machine. The resulting excavation is smooth-walled with no blasting damage to the surrounding rock. This provides a safer working environment than does conventional drill and blast development mining. Ground support requirements are considerably reduced.

Jan 1, 1986

By Ho SE, Neil Phillips G, Houstoun SM

There are numerous individual gold deposits in the Archaean greenstone belts of Western Australia, but only 26 have productions and/or quoted reserves in excess of 10 tonnes Au. Most gold production has come from mineralization in shear zones, quartz veins or stockworks in volcanic or intrusive host rocks, particularly tholeiitic basalts or dolerites metamorphosed at sub-amphibolite facies (e.g. Kalgoorlie). Significant prod- uction has also come from BIF-hosted deposits (e.g. Hill 50), and large reserves are quoted for mafic hosts at high metamorphic grade (e.g. Big Bell). Most deposits have marked structural control, great depth extension, and are characterized by zoned alteration haloes of pyritization (with Au), K-metasomatism and carbonation. On the regional scale, most larger volcanic- or intrusive-hosted deposits occur in younger (ca 2.8 b.y.) rift-phase green- stones (Norseman-Wiluna Belt). These belts also have a high prospectivity (36 kg Au/km2 of greenstone belt). Younger (ca 3.0 b.y.) and older (ca 3.5 b.y.) platform-phase green stones of the Murchison and Sodthern Cross Provinces and the east Pilbara, respectively, are progressively less prospective (14 kg Au/km2 and 0.8 kg Au/km2, respectively) and also have progressively smaller deposits. The important regional- and local-scale characteristics of most gold deposits can be explained in terms of a metamorphic- replacement model. In this model, metamorphic H2O-CO2 fluids, focussed by faults and shear zones, infiltrated host rocks and deposit gold at 350 + 50¦C and 1-2 kb, largely in response to fluid-wallrock interaction. In many large deposits, gold precipitation was synchronous with sulphidation of Fe-rich host rocks, but the diversity and abundance of smaller deposits reflects the variety of reactions precipitating gold from ubiquitous, auriferous metamorphic fluids. Regional variations in abundance and size of deposits relate to factors such as tectonic setting, alteration styles and possibly source rocks.

Jan 1, 1986

By M. A. Cristovici

"In the last few years CANMET has taken the initiative by investigating the possibility of reactivating abandoned old tailings dumps (for gold production) which would be of potential economic interest across Canada.Nova Scotia was one location where numerous gold processing plants were in operation in the early days. A survey of the old tailing dumps was conducted and some areas of interest were selected. Among them were the sites identified as Lake Charlotte and Forest Hill.Ore samples collected from those tailing ponds were examined for their chemico-mineralogical composition and investigated for gold extraction. Three technological concepts were tested: flotation, direct cyanidation and flotation followed by cyanidation of the flotation concentrate. The combined flotation- cyanidation variant, yielding a gold recovery in the range of 90%, was recommended for processing the tailing ore.Pilot-plant runs carried out by a commercial testing firm (data not included in this paper) confirmed the conditions and results of CANMET's technology.As a result a consulting-engineering firm designed the processing plant which is expected to begin operation in the near future.IntroductionIn the last few years CANMET initiated a research program to locate in Canada, abandoned gold-silver tailing dumps of potential economic interest and to explore the possibility of recovering the precious metals from these old deposits by modern techniques.A literature search revealed that the first production of gold in Canada was recorded in British Columbia in 1858 and that, production prior to 1900 was essentially restricted to the Yukon, British Columbia Nova Scotia and Quebec. During the early 1900s, Ontario, Manitoba and the North West Territories joined the ranks of the gold producers.Early milling and recovery methods were mainly restricted to sluice boxes, gravity stamps and amalgamation. Froth flotation and cyanidation were introduced at about the turn of the century.Recovery of gold at plants using flotation and cyanidation was very good, therefore the tailing ponds resulting from those operations would, very likely be of little or no economic importance. However, the gold recovery at the amalgamation and gravity concentration plants appeared to be lower, indicating the possibility that significant amounts of recoverable gold would have been carried with the tailings to the dump sites."

Jan 1, 1986

By Rolfe PR, Ellis BA, Clements RJ

Associated Minerals Consolidated Limited (AMC) is constructing a 112,500 tonne/yr synthetic rutile plant at Narngulu, near Geraldton in Western Australia. Design of the plant is based on the technology developed by AMC and utilised in its two existing plants at Capel in Western Australia. Ilmenite Feedstock for the plant will be sourced from AMC's mine at Eneabba and coal obtained from the Collie deposits. The plant is scheduled to come on stream in the second quarter of calendar 1987. The rationale of the decision to construct the Narngulu plant is examined against the background of the world market for high-Ti02 content feedstocks. Also provided is a detailed description of the plant and an examination of the technology used in process Design.

Jan 1, 1986

The exploration industry generally has a low opinion of the quality of the service supplied to it by government departments. In particular, the academic research-related emphasis of the Bureau of Mineral Resources (BMR) and the relatively low level of explora- tion assistance offered by several Mines Departments are of concern. In a number of areas of geoscience research, the industry perceives a mixup of priorities and a lack of understanding on the part of governments as to its needs. While government's sights are, and should be, set on the future needs of the community at large, the industry doubts that government budget allocations to the BMR and Mines Departments are either large enough or being cost-effectively spent. This is certainly the case for such areas as exploration assist- ance, provision of basic exploration data, and applied geoscientific research. On balance, the exploration industry's perceptions are misguided in a number of respects because of a lack of communication with government. However, this reinforces the need for changes in the manner in which govern- ment departments communicate with industry and, in particular, the criteria upon which research priorities are based. At a time of contracting oil and mineral exploration expenditure, and near-record levels of geoscientist unemployment, the government's role is critical and should be open to question.

Jan 1, 1986

By Steven A. Savage

Agrico Chemical Company, as we presently know it, is the result of the coming together of several different fertilizer operations. The Williams Companies, our parent organization, first entered the fertilizer business in 1971, when it acquired the fertilizer operations of the Gulf Oil Company. This gave us, among other things, the manufacturing facility at Donaldsonville, Louisiana. In 1972, The Williams Companies acquired Agrico Chemical Company from Continental Oil Company, bringing in a manufacturing facility and phosphate mines at Pierce Florida. Our Florida Mines are in the region commonly known as the Bone Valley Region of Florida. The majority of the phosphate fertilizer produced in the United States utilizes rock mined in this region. The Donaldsonville Plant was originally built in 1967-68 on the site of the old Faustina Plantation at an approximate cost of $80,000,000. (This plant is commonly referred to as our Faustina Plant.) Until such time as Agrico was acquired from Continental Oil, the Donaldsonville Facility was solely used to upgrade phosphoric acid into finished granular products.

Jan 1, 1986

By G. S. Adisoma, J. J. K. Daemen, R. O. Roko

A common assumption in determining the shear strength of a rock joint using a direct shear test is that the surfaces undergoing relative shear are in complete contact. Furthermore, the limiting displacement associated with the residual strength values is obtained based on engineering judgement through visual inspection of shear force versus displacement curves. This study proposes a systematic way of determining the residual shear strength of rock joints by evaluating the limiting displacement leading to a minimum cohesive strength value and taking the true area of contact into account. The results of the study indicate that there is a limiting displacement associated with the residual shear strength, and some rocks may have an inherent interface residual cohesive strength different from zero. When the cohesion is different from zero, the residual shear strength is likely to be underestimated if the true area of contact is not considered. In the case where zero calculated cohesion is obtained, the area of contact has no bearing on the shear strength equation because the frictional force depends only on the normal load.

Jan 1, 1986