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By Simon D. Strauss

INTRODUCTION The changes in ownership, management, and operation of the non-fuel minerals industry since the Second World War have been dramatic. World-leading enterprises have lost their identity; host countries have taken over operations from multi-national firms; marketing practices have been drastically altered - and yet the world industry is supplying minerals on a scale far greater than had been anticipated in projections made at mid-century. The world's known mineral resources have been enormously expanded, despite the doom sayers who for decades have been predicting that depletion of non-renewable resources would impose limits to growth. PALEY REPORT One can set the stage by reviewing how the minerals outlook was regarded in a thoughtful and comprehensive analysis made in the years 1950 and 1951. During the War years, President Harry Truman of the United States had come to appreciate the decisive role played by minerals resources through his chairmanship as a U.S Senator of a committee that investigated the procurement and allocation of natural resources. In 1950, in the Cold War era that resulted in actual military conflict in Korea, he appointed a prestigious five-man commission to study the problems of Materials Policy over the following quarter century. Their findings, published in five impressive volumes in early 1952, became known as the Paley report. The text was prepared by expert scientists and economists who spent 18 months assembling statistics, making projections of future demand, and interviewing leaders in industry, academia, and government. [ ] The Commission had correctly foreseen that aluminum would replace copper as the largest volume non-ferrous metal, but it had fallen short of reality by a wide margin indeed for all three materials. Even though the Commission's expectations for growth proved to be extremely understated, it had concluded its report with grave foreboding about the effect of its estimates of demand in relation to supply, as follows: "Consumption of almost all materials is expanding at compound rates and is thus pressing harder and harder against resources which, whatever else they may be doing, are not similarly expanding. This materials problem is thus not the kind of 'shortage' problem, local and transient, which in the past has found its solution in price changes which have brought supply and demand back into balance. The terms of the materials problem we face today are larger and more pervasive." With respect to some minerals, the Paley Report expressed scepticism that, in fact, supplies would be forthcoming regardless of price. Because the Paley demand forecasts understated the actual growth in demand for virtually every mineral, one could logically have expected frequent and protracted shortages in the years since 1950.

Jan 1, 1985

By W. S. Urbanski, A. L. Devernoe, R. W. Stuart, M. S. Walker

"Although many investigators have successfully achieved separations using variations of a concept wherein particles are buoyed upwards against gravity in a magnetically attracted fluid, none have succeeded in separating fine particles in a manner that is practical tor mineral beneficiation. This paper describes laboratory tests and preliminary economic analyses for a new mineral separation process which provides enhanced magnetic buoyancy and separation capabilities. The process provides a means of gravity separation in a regime where conventional gravity separation is inadequate; that is for small differences in mineral densities and for very fine particles. Although early interest centers on gravity separation, the process has also been successfully used for precise magnetic separation.Tests were conducted on a variety of mineral mixtures, ore samples and concentrates including; a sphalerite ore, pyrochlore ores and concentrates, cassiterite pre-concentrates, a chromite pre-concentrate, and heavy mineral placer samples. Separations requiring high discrimination between fine particles narrowly different in density or weak magnetic properties were obtained. Of particular interest is the ability of the process to concentrate or remove oxide minerals or gangues, especially silicates. Potential applications are discussed."

Jan 1, 1985

By Pierre Giasson

"Les avantages de l'électricitéLe thème de la réunion 1982 de l'ICM District No. 2: "" Le défi des années 80 pour l'industrie minière de la Côte-Nord"" exprime trè s bien la réalité . En effet, la récession économique qui touche présentement tout le monde industrialisé, frappe de façon particulièrement sévère le marché du fer et de l'acier. Il est donc primordial pour les industries minières de la CôteNord de minimiser leurs coûts de production. Comme on sait, une bonne part des coûts de production est directement reliée à la consommation d'énergie.Si on retourne en arrière de quelques années, les prix des produits pétroliers étaient beaucoup moins élevé s que maintenant . Par exemple: A Philadelphie, en janvier 1930, le prix de l'huile no. 6 (bunker C) était de 1.22$ le baril. En 1940, le prix mondial du pétrole brut se situait aux environs de 1.80$ le baril et augmentait très lentement jusqu'en 1973. A la mi-octobre 1973, l'organisation des pays exportateurs de pétrole (O.P.E.P.) surprend le reste du monde en annonçant que le prix du brut grimpe à S.12$ le baril. .. on connaît la suite.On sait qu'au point de vue énergétique, le nord du Québec est l'une des régions les plus avantagées au monde. Malgré le fait que notre climat soit plutôt défavorable, nous sommes assurés d'une alimentation électrique à toute fin pratique éternelle, contrairement aux autres régions du globe. En effet, l' hydro-électricité ne représente que 2.S070 de toute l'électricité produite dans le monde.Une bonne partie de l'énergie consommée dans les industries minières de la Côte-Nord est utilisée pour produire la vapeur. Or, il y a plusieurs avantages à produire de la vapeur à partir de l'électricité:1. Le prix d'achat d'une chaudière électrique peut être moins de la moitié de celui d'une chaudière à carburant fo ssile.2. Le prix de l'électricité est plus bas que celu i des autres sources d'énergie disponibles dans notre région.3. Hydro-Québec offre un programme spéci al de subventions et un prix garanti de l'électricité, inférieur de 10070 à celui de tout autre combustible (1982).4. Souvent il est possible d'utiliser l'énergie hors pointe à un coût minime.S. L'espace requis pour un chaudière électrique est beaucoup moindre. Par exemple: une chaudière d'une capacité de 120000 Ibs/hre ne demande que SO pi? de plancher, c'est-à-dire un cercle de 8 pieds de diamètre comparativement à environ 600 à 700 pi2 pour une chaudière au ma zout.6. Aucun espace n'est requis pour l'entreposage du carburant.7. Aucun espace n'est requis pour la cheminée.8. Il n' y a que très peu de pièce s mécaniques, donc ces chaudières demandent très peu d 'entretien .9. Les chaudières électriques ne génèrent aucune pollution, donc on n'a pas besoin d'équipement coûteux de contrôle de la pollution.10. Ces chaudières sont extrêmement rapides. En effet, on peut passer de zéro à la production maximum en moins d'une heure si la chaudière est froide et en quelques secondes seulement si la chaudière est à sa température d'opération.11. L'efficacité de ces appareils est au moins de 9S% par rapport à 80-8S% pour les chaudières au ma zout. De plus, cette efficacité demeure la même quel que soit le niveau de production de la chaudière. Il faut faire attention ici: les manufacturiers proposent des rendements de 99% et plus, mais ceci ne tient compte que des pertes de chaleur à travers l'enveloppe, et de l'énergie nécessaire au fonctionnement de la pompe de circulation. Il faut ajouter à cela l'énergie perdue à cause de la vidange qui varie selon le type de chaudière et selon la qualité de l'eau d'alimentation.12. Ajoutons simplement que ces appareils sont très facile à opérer du fait qu'il n'y a aucun système complexe à manipuler.Cependant, il y a un inconvénient non négligeable à utiliser l'électricité comme source d'énergie: comme on ne peut pas emmagasiner l'énergie électrique, nous sommes à la merci du fournisseur."

Jan 1, 1985

By R. F. Sheldon

The discovery of the Carlin deposit was the result of discriminating geologic research and prospecting devoted to the objective of finding a gold deposit that could be mined by open pit methods. By the late 1950s, Newmont Mining Corp. was becoming increasingly concerned about the trend of rapidly rising underground mining costs unless bulk mining methods could be applied. The desirability of finding an open-pittable gold deposit was apparent. The attention of Newmont geologists was directed to Nevada by the publication of two papers: "Paleozoic rocks in North-central Nevada" (1958) and "Alinements of Mining Districts in North-central Nevada" (1960), both authored or co-authored by Ralph J. Roberts of the United States Geological Survey. John Livermore, geologist of Newmont Exploration Ltd., attended a talk given by Roberts in Ely, Nevada in the summer of 1961. These papers and the address by Roberts gave details concerning the Roberts Mountain overthrust, a 483 km (300-mile) long, shallowdipping fault which pushed clastic and volcanic rocks of early and middle Paleozoic age eastward over younger marine formations. Subsequent uplift and doming with consequent erosion had locally removed the upper plate strata exposing windows of lower plate carbonate rocks. Roberts noted that the principal mineral deposits of the region, including gold, were associated with these windows which exhibited a preferred alinement. In the summer and fall of 1961 Newmont's exploration geologists John Livermore and J. Alan Coope began a systematic examination of gold occurrences associated with these windows, aided by further discussion with geologists of the US Geological Survey. Attention was directed to the Lynn and Carlin windows, particularly to those formations lying immediately above and below the Roberts Mountain fault. It was appreciated at the time that many of the gold occurrences in the region were unusual in that no colours were obtained even when panning high grade samples. A large number of rock samples were collected and analysed using fire assaying procedures, and background values for gold were established. This systematic rock sampling resulted in the identification of a distinct area of anomalous gold values, and a block of claims was staked in late October, 1961. These claims, plus an adjoining optioned 32.4 ha (80 acres) of ground, cover the main area of the present Carlin gold mine. Prior to snowfall that winter, one of the bulldozed assessment pits required to establish a claim's discovery exposed 24 m (80 ft) of mineralization assaying 0.007 kg/t (0.22 oz per st) gold. In the spring of 1962 a program of trenching, sampling, and geological mapping followed by rotary drilling was underway. Other properties in the area were acquired. The generally undistinguished nature of the dolomitic siltstones and silty dolomitic limestones hosting the micron-sized gold particles, coupled with the lack of visually associated guide minerals, made identification of the gold bearing areas very difficult. The entire drill column had to be assayed to ensure that values were not overlooked, as very often sections that might be assumed to be waste turned out to be high grade. On September 10, 1962 a high grade intersection of 24 m (80 ft) assaying over 0.03 kg/t (1 oz per st) gold was encountered in the third hole drilled. An expanded program of both rotary and diamond drilling led to the further delineation of the ore body. By December 1963, the exploration program had established an initial reserve of 10 Mt (11 million st) grading 0.01 kg/t (0.32 oz per st) gold. A 1.8 kt/d (2,000 stpd) processing plant was constructed and the first gold bullion was poured in May, 1965, just two years and eight months after the discovery hole was drilled. REFERENCES Roberts, R.J., Holz, P.E., Gilluly, J., and Ferguson, H.G., 1958, "Paleozoic Rocks in North-central Nevada," Bulletin American Association of Petroleum Geologists, Vol. 42, No. 12. Roberts, R.J., 1960, "Alinements of Mining Districts in North-central Nevada," Professional Paper 400-B, US Geological Survey, Article 9.

Jan 1, 1985

By C. A. Natalie

Prediction of average residence times for different particle size intervals during sulfide roasting was investigated. Calculations were done to predict average residence times using a model which employs empirical correlations for elutriation constants. Experimental average residence times were determined using a continuous., six inch diameter,. fluid bed roaster and compared with calculated residence time values. Comparison of calculated and experimental data showed that geometry effects may have .been significant when attempting to apply elutriation data to this roaster.

Jan 1, 1985

By Robert L. Virta

The Bureau of Mines examined a fibrous talc sample from the Gouverneur talc district in New York by transmission electron microscopy (TEM) and polarized light microscopy to determine the mineralogical relationship of the fibrous talc to the amphiboles present in the sample. Two am-phiboles, anthophyllite and tremolite, were present in the sample. Tremolite occurred as a separate mineral phase, which was blocky in habit. Only a few composite tremolite-talc grains were observed. An-thophyllite, however, was present only in the fibrous talc grains. Mi-crodiffraction study of the fibrous talc grains containing anthophyllite showed that the anthophyllite was intermixed with the talc on a fine scale and that there was a crystallographic relationship between the talc and anthophyllite lattices in the fibrous talc grains. A mechanism similar to the process that forms biopyriboles could explain the structural defects, the fibrous habit of the talc, and the structural relationship between the talc and anthophyllite in the fibrous talc grains. Because of these characteristics, phase contrast microscopy and a provisional TEM technique for monitoring asbestos exposure would not distinguish between fibrous talc and fibrous amphiboles. TEM techniques employing electron diffraction and energy-dispersive X-ray analysis are recommended to positively identify the fibrous phases for regulatory purposes.

Jan 1, 1985

By Harry R. Cedergren

Properly designed drainage systems can be of great benefit to many kinds of Civil Engineering works, including embankments, and often are the most economical way to protect such works from the damaging effects of water. To function properly, drains must be able to remove water without also removing soil or becoming clogged with soil or erodible rocks. The first criterion to be used in designing drainage systems, called the filter criterion, can prevent all such problems (erosion and clogging) when properly fulfilled in design and construction. The second requirement of drains is that they must be capable of removing all of the incoming water without the build-up of large amounts of head that can damage the protected works. To insure this kind of perfomance, the discharge capabilities of drains should always be verified by appropriate hydraulic and seepage calculations. This paper describes these two basic drain design criteria and also gives examples of application of seepage principles to the evaluation of the potential benefits of drains and to the design of drains for mine waste embankments.

Jan 1, 1985

By Robert L. Davidoff

INTRODUCTION The impact of taxation differs substantially from state to state in a complex fashion that depends on both the physical characteristics of a mineral deposit and on the price of the mineral commodity relative to its costs of production. A comparative analysis of the tax structures of eight states (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wisconsin) showed wide variations in rates of return for any given type of mineral property, with no state having either the most burdensome or least burdensome tax structure under all circumstances. Three hypothetical mineral operations were analyzed: a producing open-pit copper property, a non-producing underground platinum operation, and a non-producing underground gold operation. None of them corresponds exactly to an existing property. Each of these property types is further defined to have ore feed grades at three different levels, leading to three potential profitability levels, referred to in this paper as "economic", "marginal" and "subeconomic". Thus the differential impact of state tax structures is measured for mineral properties of different types, as well as for different profitability levels. Montana is used as the base case. This study does not address the topic of corporate structures or tax consolidation. There are no costs assumed external to the operation of the deposit (e.g. exploration to locate additional deposits). Two types of analyses were performed for this study. The first calculates the total cumulative tax payments in each state using all applicable taxes (including U.S. federal income taxes and examines the resultant differences in discounted cash-flows rate of returns DCFROR's amoung the eight states. The second is a sensitivity analysis that examines each type of state tax separately (i.e. state income, property, and severance taxes) in order to isolate and examine the differences in tax payments that are due to the difference in rates and methods of computing specific types of taxes in each state. The results of this study serve to illustrate the complex nature of interactions among various taxes. For example, property tax is a deduction in calculating severance tax in some state. Changes in property-tax and severance-tax payments both enter into the calculation of state and federal income-tax liability. This, in turn, could change the timing and usage of tax-loss carry forward amounts and investment tax credits. Additionally, the physical characteristics of a property, the method and costs at which the mineral will be extracted, and the profitability level at which each property operates will affect tax treatment. Each mineral operation was evaluated at three different predetermined profitability levels, referred to using the terms economic, marginal and sub-economic. These three profitability levels are defined by the ore feed grades of the primary commodity that yield in constant terms, approximately an "economic" 18% DCFROR, "a marginal." 10% DCFROR, and a "sub-economic" 5% DCFROR, respectively, under the Montana tax structure. In the analyses, the mining and processing parameters for each of the three types of properties were assumed to be identical for each of the eight states. It was assumed that each operation produces at full operating capacity throughout its life. This implies the level of mineral commodity demand will support the inferred commodity price, such that each operation will be able to sell all its output. The analyses performed for this study were done using a comprehensive economic evaluation simulator that is used in the Bureau of Mines, Division of Minerals Availability MAS program to perform DCFROR analyses. All economic evaluations performed upon these data (see appendix 2) were in constant January 1981 dollars. By-product prices used for the analyses were: [Gold $425.00/troy ounce Palladium$200.00/troy ounce Silver $ 10.00/troy ounce] Typical cash-flow calculation layout is given in Appendix 3. The initial step for each evaluation is to define an "economic" profitability level scenario. An 18% DCFROR rate in Montana was considered the

Jan 1, 1985

By David S. Young

All pigments and extenders or fillers whether organic or inorganic fall into the following broad general classes: I. Colored II.-White III. Black IV. Metallic A pigment- is any particulate matter that is essentially insoluble and chemically unaffected by the media into which it is dispersed. According to this very broad definition, colored pigments, white pigments, fillers, extenders, and functional pigments would all be included. The particulate size range would also be quite broad ranging from very fine colloidal particles (~0.01µ) to relatively coarse particles (~100.0µ). This broad definition is usually subdivided into more practical divisions which tend to relate the classification of the pigment to its primary function in the system in which it is used. Hence, the word extender implies that its major purpose may be to extend the system.

Jan 1, 1985

The commonly used stainless steels, their properties and uses are briefly discussed.Two specific topics are then explored in more detai's to highlight development areas, the potential of which has been largely unexploited in mining milling, refining and smelting operations. The high strength to weight ratios achievable in austenitic stainless steels has been widely used in the transport industry to design high integrity light weight vehicles,especially railway carriages. This use has rarely been extended into other structural areas where highly aggressive environments could make stainless steel a cost effective material compared to protected carbon steels. The recently developed weldable ferritic steels are described and their potential in materials handling discussed. Particular attention is paid to 3CR12, a nominal 12% Chromium, titanium stabilised steel finding wide acceptance in the mining industry.

Jan 1, 1985

By Bonn J. Macy, David A. Gulley, William A. Vogely

INTRODUCTION Some of the most famous and graphic environmental incidents have arisen from mineral extraction, including oil spills, the Reserve Mining asbestos tailings case, Kaiparowitts surface mining and coal combustion, and other environmental causes celebre. The remote location of much of the mining industry to some extent reduces the human health hazards from pollution, but often times the pristine locale in which mining is conducted provides a sharp contrast to the impacting industry. This prompts questions as to what the research literature says about the true costs and benefits of environmental compliance. We survey the state of this knowledge. Where possible, we discuss studies focused on mining and related industries, such as primary metals production. In many cases, how- ever, the studies pertain to the economy as a whole. For present purposes, the mining industry is defined as companies engaged in the production and refinement of minerals, including metals, fuels, and nonmetallics (e.g., phosphate, sand and gravel). There are several stages in mining, with environmental effects occuring at every stage. The exploration stage comprises the period from initial prospecting to the point where the deposit has been located and delineated in sufficient detail to permit development decisions to be made. Geophysical and geochemical surveys, diamond drilling programs, and exploratory stripping and excavation are activities that may be employed during this stage. Some forms of prospecting are relatively benign, al- though even airborne surveys and motor vehicles generate noise pollution. Roads and the passage of vehicles and equipment affect land surfaces and vegetation, and attract heavier backcountry use. Clearings, stream crossings, and borrow pits can lead to increased erosion and sedimentation of streams. Geological survey grids disrupt vegetation and appearance. Moreover, prospecting can involve the excavation and stripping of overburden, resulting in soil and vegetation disruption as well as in- creased sedimentation of streams and lakes. The effects of exploration are often temporary, and frequently less severe than for other activities. Nevertheless, exploration-related impacts vary with the intensity and type of exploration effort, and can be significant. During the development stage of mining, shafts are sunk, pits excavated, buildings erected, and transportation facilities established. Dust, noise, and other socioeconomic and environmental impacts are generated by the relatively large and sudden influx of people, equipment, and activity. Surface disturbance and solid waste are generated by development, and liquid wastes form when mines are dewatered. The extraction phase is associated with a variety of environmental impacts. These impacts may differ for surface and underground mines. In surface mining, surface disturbance is obviously a major consequence. Piles of overburden and waste accumulation mar land surfaces. Wind and water erosion tend to spread the dis-

Jan 1, 1985

By Charles W. Daugherty, Eugene B. Waggoner

In the construction of recent subsurface projects, particularly mined openings and transit systems, it has been apparent that final costs were often greater than first expected. Because many overruns result from alleged differing site conditions, there was reason to suspect that pre-bid geotechnical investigations were inadequate for predicting subsurface geology. In 1982, nine federal agencies involved in constructing underground facilities funded the National Academy of Sciences' U.S. National Committee on Tunneling Technology (USNC/TT) in an effort to evaluate and clarify the relationship between geological knowledge and construction costs. That committee formed the special Subcommittee on Geological Site Investigations, which spent more than two years studying underground projects by examining contract documents and geologic reports, making site visits, and interviewing owners, designers and contractors. The study ultimately encompassed 84 mined tunnels and chambers and three deep shafts in the United States and eastern Canada. Data collected on geologic exploration, design and construction were analyzed and conclusions reached concerning whether and how site investigations need to be improved. The results of the study are published in two volumes by the National Academy of Sciences. Due to the recent completion date of the main report, it was not possible to prepare a summary for inclusion in the RETC Proceedings. However, the complete two-volume report, "Geotechnical Site Investigations for Underground Projects," can be obtained by writing or calling: U.S. National Committee on Tunneling Technology National Academy of Sciences 2101 Constitution Avenue, N.W. Washington, D.C. 20418 (202) 334-3136

Jan 1, 1985

By Lucia Kuizon

The Pinnacles Wilderness Contiguous Wilderness Study Area (WSA) (CA-040-303) is 30 miles south of Hollister, CA, in San Benito and Monterey Counties. It is composed of five parcels of public land totaling 5,838 acres adjacent to the Pinnacles National Monument. The U.S. Bureau of Land Management later reduced the size of the Recommended Suitable Area (RSA) to 2,200 acres. U.S: Bureau of Mines personnel examined the entire WSA in May 1984. The WSA is underlain by Tertiary sedimentary and Cretaceous plutonic rocks. Diatoms occur in interbedded tuff, shale, and sandstones in the northern part of the WSA, but outside the RSA. In 1984, there were no mines, prospects, mining claims, leases, or mineral resources in or within one mile of the study area. No energy minerals were identified; however, an oil well was drilled in 1951 in the northern part of the WSA, but outside the RSA; it was a dry hole.

Jan 1, 1985

By Duane L. Whiting

Jan 1, 1985

By Wolfgang O. Gluschke

INTRODUCTION Virtually all countries have general legislation covering most aspects of mining and mineral processing, including investment and tax laws, safety and health regulation, and specific rules applying to exploration reporting procedures. Yet most developing countries negotiate individual agreements with foreign investors for major mineral projects, in particular when all or part of the expected output is exported. Such agreements are known under several different names, as for example concession agreement; technical assistance agreement or service contract; management agreement; production sharing contract; joint venture; or contract of work. The objectives and conditions governing such contracts are as diverse as these titles are. While a mining project is only one among a large mumber of similar undertakings in industrial countries, in most developing countries such projects usually have a dominating position within the country's economy. The general legislation is often inadequate and insufficiently detailed to cover all aspects of large projects with extensive foreign inputs and international markets. Therefore, the need for specific arrangements. Specific arrangements may also become necessary due to the complexity of markets for mineral products, the large number of participants - equity partners, suppliers, financial institutions, buyers, etc. - or economic and political conditions in the host country and fiscal regulations in the home country of the investors. Most agreements are concluded between governments, or government agencies, in developing countries and private industry headquartered in developed market economies - Canada and the United States of America in North America, Western European countries, Japan, South Africa and Australia - or, in some instances, with state-owned firms in these countries. There are fewer agreements between developing countries and the centrally planned economy countries - Eastern Europe and the USSR - which cannot be considered here because of absence of adequate information. Agreements can be concluded at any of the different stages from exploration through closing of a mine. While most contracts are negotiated at the time when a potentially viable ore body has been delineated and investigated sufficiently to anticipate a realistic time for commencement of production, other agreements start with "grass-roots" exploration, during operation of a mine, smelter or refinery or, exceptionally, after a temporary shutdown. While several major provisions are included in all types of agreements, others are covered in much more detail (or not at all) in some contracts reflecting the specific work programme of each project. While it is realized that subdivision and classification of complex contractual relations is necessarily arbitrary to a certain extent, such grouping is useful in practical terms, especially for the non-specialist. The following discussion, therefore, will start with a description of the major forms of contractual relation - concession, investment contract, joint venture, management agreement, service and production sharing contracts. Major issues covered in all, or almost all, agreements will then be dealt with. These include stages of development, corporate structure and control, fiscal arrangements, infrastructure development and environmental law, and dispute settlement and renegotiation. FORMS OF CONTRACT RELATIONS There has been marked change in the type of agreement entered into during the 1960s (and before) and the early 1970s and the period thereafter. While straight "concessions" - granting of exclusive rights to foreign investors over a certain deposit or areas with little restriction or well-defined obligations - were the rule during the first half of this century, more complex agreements have evolved since. Some of these cover every conceivable aspect, foreseen or only possible, and define rights and obligations of all partners to the last detail. Over the years, agreements have without doubt become more beneficial for the developing host countries, in part as a result of well-publicized nationalizations, as for example in Chile, and in part due to changed attitudes in all countries

Jan 1, 1985

By McGregor GW

The Utah International group of companies has a wide geographic spread of operations, including a significant interest inAustralia's largest coking coal operation in Queensland, steaming and coking coal mines in USA, a copper mine in Canada, a half interest in an iron ore operation in Brazil, a number of smaller operations, and a significant portfolio of undeveloped properties in South America, South Africa and South East Asia.The opportunity to acquire this group of companies presented an immediate problem to BHP in that it was regarded as too large for BHP to absorb by itself. In addition, there was a concern that such an acquisition would increase BHP's coking coal exposures to unacceptable levels. Despite these dilemmas, BHP was keen to acquire Utah.A plan was therefore developed and agreed to by General Electric (GE) (the then owner of Utah) which would give BHP nine months in which to put together a consortium to share in the ownership of the Queensland coal assets (plus coal assets owned by BHP), and to arrange a project financing for use by BHP and the consortium. BHP would own 100% of the rest of the assets.

Jan 1, 1985

By Herbert D. Drechsler

The objective of this paper is to identify the components of income above that necessary to keep a mine in production and relate those components to the profits of a mining firm. This is a discussion of "Economic Rent". Economic rent is the payment to the factors of production -- capital, labour, entreprenuer and the owner of the mineral deposit -- above the minimum necessary to keep all of these factors cooperating in the production of minerals from a particular deposit. THE SOURCE OF ECONOMIC RENT IN THE MINING INDUSTRY In the mining business each mine has a unique cost of production unrelated to any other mine. The cost of production is developed from many factors such as the technical characteristics of the deposit: depth of deposit, depth of overburden, areal extent, and type of deposit. Furthermore, there are locational factors which also alter cost of production. For example, identical mineral deposits located in Zambia or in the southwest U.S.A. would have different capital and operating costs. These differences occur because of different qualities of labour, ease of acquisition of operating supplies or investment capital and other similar factors. To explain the source of rent, we shall use ideas developed by Alfred Marshall and Kenneth Boulding. Suppose a meteorite with special qualities exploded over earth and sent showers of small meteorites to the ground in various places. At some point in time, people learned of the special qualities of these meteorites and a demand arose and one mine was started. Suppose further that the cost of production to produce these meteorites was different for each deposit. Probably the lowest unit cost mine would commence production because if a higher unit cost mine started-up, eventually someone would discover a deposit that had a lower unit cost of production. The lower unit cost mine would take over the market and the high unit cost mine would cease production. The cost curve for the first mine would look like the following Figure 1. [ ] The output for the first mine is on the horizontal axis with the cost per ton on the vertical axis. The curve labelled AC I is the average total cost of production over the range of possible production that could occur at the property. The total costs are composed of variable costs, which are dependent on output and fixed costs, which are dependent on time. For example, the cost of operating supplies would be a variable cost and normal profit would be a fixed cost.1 The opportunity cost of the investment would also be part of the fixed costs. In our example, all factors of production, are receiving the minimum necessary payment that will keep the mine operating. The average total cost curve is U-shaped because at zero output, the meteorite mine has no variable costs, only fixed costs which, on a unit basis, obviously are very high. To produce a small output of meteorites, the mining firm adds

Jan 1, 1985

By H. C. Roland Kammel

Stannous sulfate electrolytes are widely used nowadays in electrolytic tin production. Characteristic features of this electrolysis process are that dense cathode deposits can only be obtained by additions of organic additives and that so called ?black mud is formed on the anode surface which leads to an increase in cell-voltage. In order to prevent excessive cell-voltages or oxygen evolution the black mud has to be removed periodically. Studies in laboratory scale have been performed about the effect of different organic additives on electrolytic tin deposition and the formation of surface layers on pure and industrial tin anodes. Results reveal that organic addition agents are effective in reducing cathode roughening as well as extending the covering time of the anode ?by black muds.

Jan 1, 1985

By Ross R. Bhappu

A theoretical and experimental investigation into pyrometallurgical refining of chloride leach/electrowin copper is described. The two techniques investigated were (i) vaporization and (ii) gaseous halogenation. Experiments were carried out with a packed bed of electrowon copper crystals and a boat of melted copper crystals. Nitrogen gas and Freon 12/nitrogen mixtures were used as the carrier and reac.tive gases. Vaporization was found to be effective in removing Bi, Pb and S while halogenation was effective. in removing As, Bi, Pb, S and Sb. Silver resisted all attempts at removal. Iron was removed but less effectively than the other impurities.

Jan 1, 1985

By William G. Pariseau

The research reported here concerns a four year study of the rock mechanics aspects of two underground hardrock mine study stopes. The first study was conducted at Anaconda Minerals Company's Carr Fork Mine near Tooele, Utah. The second study was conducted at the Homestake Mining Company's Homestake Mine In Lead, South Dakota. Both case studies were cooperative efforts of mining company personnel, the Spokane Research Center of the Bureau of Mines and the Department of Mining Engineering, University of Utah. Large diameter (6 1/2 In.) blastholes were an integral part of the stoplng method at each mine. A true vertical crater retreat (VCR) method was used at the Homestake Mine, while a vertical bench mining method (VBM) was used at the Carr Fork Mine. VCR and VBM methods were developed In the 1970's; they offer significant productivity gain and are now used throughout the world. The new technology, however, brings with It a requirement for more sophisticated engineering design and control. Since there are no personnel in a VCR or VBM stope, all ground control Including dimensioning of stopes and pillars and the layout of cable bolt assays or other artificial support must be done in advance of production blasting. Accordingly, the objective of the research study was the establishment of a procedure for optimizing stops and pillar sizes. The approach taken was In each case a combination of mine measurements of the study stope response to mining, laboratory testing for rock properties and In situ stress measurements of the premining stress field, and theoretical calculations of the study stope response to mining. All calculations were done with the UTAH-II finite element computer program. Simulation of the blasting sequence gave a correlation of 0.88 between measured and calculated extensometer readings (Incremental relative displacements) at the Carr Fork Mine where other 30 Instrumentation boreholes were used to monitor the test stope response. A correlation of 0.84 was obtained at the Homestake Mine where 19 instrumented boreholes were used for monitoring purposes. These high correlations validated the computer mode and calibrated It for rock mass properties. The calibrated model was then used In parametric studies of alternative design layouts.

Jan 1, 1985