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By T. R. Strombotne

The purpose of this report k to document a contract undertaken by TSA Systems, Incorporated for the United States Bureau of Mines to develop a commercially available source of a continuous, working,, level detector for the measurement of radon daughter products in various working environments. The basic radon measuring technique was devised by Robert Droullard and Robert Holub and has been applied here. For further details or purchasing information contact: TSA Systems, Incorporated 4919 North Broadway Boulder, Colorado 80302

Jan 1, 1982

Activated carbon is ideally suited to treating low grade ores and tailings by the carbon-in-pulp process and is rapidly replacing the use of zinc for recovering gold from cyanide leach solutions. Coarse carbon particles derived from coconut shell adsorb up to 30,000 ppm Au as a gold cyanide complex and can leave barren solutions containing

Jan 1, 1982

By Norman M. P. Low

"IntroductionIndustrial applications of mica utilize two commercially important varieties of mica: muscovite and phlogopite. Muscovite mica is a potassium mica with a general chemical formula, H2KA1(Si04)3 h, and is sometimes referred to as a potas hsilicate. Phlogopite is a magnesium mica having a general chemical formula, H2KMgSi(Si04)3, and is distinguished from the muscovite mica by its decomposition in sulphuric acid.Canada is one of the major natural mica producers in the world. A large tonnage of the mica powders is at present mined and processed in the Eastern Townships of Quebec. This Canadian mica is of the phlogopite type. A closely related mineral of the mica family which is widely used in the construction industry is vermiculite. It is a dehydrated magnesium-aluminum-iron silicate characterized by a foliated structure. Expanded vermiculite, which is often referred to as exfoliated mica, is used as many types of thermal and acoustic insulation, as loose fill in buildings, as an aggregate in concrete, as an ingredient in plaster and insulating concrete , and in fire-proofing compositions. Natural phlogopite and muscovite mica powders are used extensively as reinforcing agents in organic polymers. They also have a wide range of applications in commerical products. For example, dry-ground mica powders are used in large tonnage as a surface finish in roofing materials and as a bonding agent in wallboard joint cement. Common products such as paint, rubber, plastics and welding rods contain mica. Recent studies have also shown that mica powders can be added to portland cement in the preparation of concrete products, as they could improve the tensile strength of the concrete products. The potential and possible"

Jan 1, 1982

By Brian McIntrye, Bo Trygg

"The need for grinding mills of ever increasing capacity and greater feed openings has tended toward mill trunnion diameters being beyond the size limits for roller bearings.Hydrodynamic plain bearings need to be wide enough to achieve the necessary bearing pressure in order to obtain an oil film with sufficient carrying capacity at low rotational speeds. This greater width increases edge loading resulting from the deflection of the mill under load.Because of the high surf ace pressure involved, the life of support rollers and girth rings is often inadequate-fatigue leads to flaking on the contact surfaces. Heat treatment of the girth rings also has its problems.The hydrostatic shoe bearing permits unlimited trunnion diameter and a high carrying capacity. The self-aligning shoes compensate automatically for radial deviations and large deformations can be tolerated at the girth ring.The sliding surfaces are completely separated by oil under pressure, enabling negligible starting torque and good damping capacity to be achieved together with low rotational speeds.IntroductionHydrostatic bearings have been known within machine technology since 1865, when the Frenchman Girard received a patent for such a bearing. During the following 75 years, these types of bearings were used sporadically for thrust bearings, primarily in water turbines. The first usable radial bearing was not designed until 1938. Since the 1950s, when hydrostatic bearings started to come into use within the field of machine tools, extensive research and development work has been carried out at various institutions and research centres throughout the world. Many support problems are now solved by means of hydrostatic plain bearings and the primary factor in deciding to use them is their unique characteristics:• ability to carry high loadings• no starting torque• large damping capacity• no wear• large running accuracyThe hydrostatic shoe bearing has been developed specially for use in the heavy machine industry, with the requirements for high loadings and large support diameters which this market demands."

Jan 1, 1982

By Frank Florez

INTRODUCTION The Magma mine, located at Superior, AZ, some 100 km (60 miles) east of Phoenix, was discovered in 1875, and was originally mined for silver. The property was acquired by W. B. Thompson who formed the Magma Copper Co. in 1910. Prior to 1965, square-set mining and cut-and-fill methods were used to mine steeply dipping veins at Magma. Ore was moved to the chute by gravity in the square-set stopes and by slusher in the cut-and-fill stopes. The stopes were gobbed with waste from the surface and development headings in the mine. The original square-set method of mining was modi¬fied in order to extract replacement ore bodies in limestones that dipped at 0.52 rad (30°) and varied in thick¬ness from 4.6 to 38 m (15 to 125 ft). Mining of these ore bodies was done by starting at the upper lateral ex¬tremities and retreating to the access openings. The timber square sets and cribbing were used as temporary support, the ground being allowed to cave as the mining retreated. It was found, however, that mining in such a manner was very inefficient; safety hazards increased be¬cause of the blocky and fractured characteristics of the ore and the weakness of the hanging wall. GENERAL DESCRIPTION The undercut-and-fill method of mining is now the primary stoping method used at Magma, and no pillars are left for later extraction. Four ore bodies are pres¬ently being mined. These ore bodies (see Fig. 1) dip conformably at 0.52 rad (30°) to the east with the host limestone and shale sediments, their average strike length is about 122 m (400 ft), and their thickness varies from 9 to 38 m (30 to 125 ft). The ore bodies are separated by varying thicknesses of barren rock. Three of them come together at various elevations primarily in the area of the main feeder fault, but there is an apparent horizontal displacement of about 23 m (75 ft) on the main feeder fault which complicates stope layout. The method as originally applied has been modified in order to mine more efficiently ore bodies that are 9 m (30 ft) or more in thickness. The modification was made to mine all the ore at a given elevation before dropping down for the cut below. The advantage of this is that mining is done on a horizontal plane and there¬fore muck removal can be mechanized. Also multiple faces are made available, thereby improving overall min¬ing efficiency. Another major change made was to carry a 6.7-m (22-ft) face when mining the top sill and a 6.4-m (21-ft) face when mining under fill rather than the former standard 3.35-m (11-ft) high face. This change lengthens the mining cycle and cuts mat prepa¬ration costs in half. Stopes are laid out (see Fig. 2) so that maximum mining panels are available and yet one stope crew will not tie up too much of the ore reserve. One stope might consist of as many as 20 panels, and these panels are divided evenly on opposite sides of the extraction cross¬cut. The stope layout is planned so that the maximum tramming distance to the orepass will not exceed 30.5 m (100 ft) on the crosscut and 38 m (125 ft) in the panel. Stope panel distances are sometimes exceeded when min¬ing to the extremity of the ore body. Tramming distance limits are determined by the efficiency of the com

Jan 1, 1982

By Rudolf Kvapil

INTRODUCTION Sublevel mining is a mass mining method based upon the utilization of gravity flow of the blasted ore and the caved overlying waste rock mass. As with any other mining method, sublevel caving has advantages and dis¬advantages which must be carefully considered and evaluated. The major advantages of sublevel caving are dis¬cussed as follows: Because all of the mining activities are executed in or from relatively small openings, sublevel caving is one of the safest mining methods. Drifts, which are the pri¬mary working places, are distributed in a uniform pat¬tern on all levels. Normally the maximum dimensions of the sublevel drifts are about 5 m wide and 3.7 m high. The transportation drifts can have the same section, or the height may be increased to about 4.5 m when trucks are loaded in the transport drifts. The stability and safety of such drifts in competent rock can be easily controlled by smooth blasting or by a combination of smooth blasting with shotcreting. In less competent rock masses, stability can be achieved by combined reinforc¬ing, for example, by a combination of smooth blasting, shotcreting, and rockbolting. The major mining activities can be broken down into three groups: drifting and reinforcing; ore fragmenta¬tion, i.e., production drilling and blasting; and ore draw¬ing, loading, and transportation, and all are relatively simple. Because of the repetitive nature of the mining system, one can standardize almost completely all min¬ing activities. This means that a high degree of work efficiency can be achieved. Because the components of mining production in sublevel caving can be standardized, a high degree of mechanization is possible. In modern sublevel caving the sections of drifts and tunnels are sufficiently large to allow the introduction of large trackless mining equip¬ment. The advantages of a trackless system can be then broadly utilized not only for direct mining but also for all services, including the transportation of mining per¬sonnel to the working place. The flexibility of mining is very good. Standardiza¬tion and specialization of mining activities and equip¬ment on separate levels (lower level or levels in de¬velopment, upper level or levels in production mining) together with the trackless system yield a high degree of flexibility. This allows a rapid start-up of mining and good flexibility in making production rate changes. The method lends itself to good work concentration, organization, and working conditions. Normally, on the lower levels, various phases of development are under¬way. Upper levels are in various stages of extraction. Therefore the work can be easily organized into a sys¬tem which excludes interference between mining activi¬ties. Safety of mining (in small dimension openings), good work organization, high mechanization using large modern mining equipment, etc., comprise very good working conditions. Naturally such a system enables a high work concentration and rationalization of separate specialized mining activities and therefore mining by sublevel caving can be effective and relatively in¬expensive. The major disadvantages of sublevel caving, on the other hand, are: There is a relatively high dilution of the ore by caved waste. Various types of ore loss can occur. When the ex¬traction limit (that point yielding the maximum accept¬able amount of dilution) is reached, the remaining highly diluted ore represents an ore loss. Some ore is lost in passive zones located on the level of extraction between the active zones of the gravity flow. Part of the ore from these passive zones can be recovered together with ore extraction on the lower sublevel, but some un¬diluted and often not fragmented ore located in passive zones above the plane of the footwall is lost. In gen¬eral, these losses are larger as the inclination of the ore body and the footwall is reduced. A relatively large amount of development is re¬quired. This includes transport drifts, usually located in the footwall waste rock on each sublevel, and sub¬level drifts, which connect the active mining areas to the transport drifts and as a result are partially in ore and partially in the waste rock of the footwall. The waste rock length increases as the inclination of the ore body and footwall decreases. It also includes orepasses, used for transport of the ore or waste from the separate sublevels downward to the main haulage level, and normally driven in waste; and inclined drifts or tunnels, which provide a connection for the trackless equipment between the main haulage level and the separate sublevels and are driven in waste. Finally there is the de¬struction of the surface through subsidence. To maximize the ore recovery, minimize the dilu¬tion, and achieve a high efficiency of mining by sub¬level caving, good data regarding the gravity flow pa¬rameters for the blasted ore and the caved waste are of utmost importance. The exact type and amount of data required depend upon the purpose and needs of the study. For the first feasibility study, it may be sufficient to utilize the data from other sublevel caving operations with similar conditions and circumstances. For any higher level of mine planning it is clear that more exact data, including analytical and experimental analyses up to full-scale in-situ testing, are necessary. Basic gravity flow principles and design guidelines for the application of the sublevel caving mining method are presented in the following sections. Although some¬what simplified, they should provide a basis for mine planning and operation. The gravity flow principles described can be effectively applied to other mining situations, with some modification. Also, steep dipping coal seams can be effectively mined by modified sub¬level caving.

Jan 1, 1982

By Hokuichiro Ohmachi

INTRODUCTION Metallic minerals have been formed only through complex geologic processes which took place at certain stages of the earth's histrory. Their concentration, abundance, and distribution are, therefore, restricted geologically, and very small in global scale. Ore is a mineral deposit or mineral concentration from which metals can be economically extracted by the contemporaneous technology. By this definition, several factors should be considered before any mineral deposit is regarded as an ore. The grade of mineral concentration and the scale of the reserve are most important. Demand for the metal and its price are the other factors. Advancement of technology in mining and extraction are also vital. Copper, for example, is now commonly extracted from the ores containing less than 0.3% of the metal. However, in the 1700's the common minerable grade was about 13%, and in the 1900's between 5 to 2.5%. This decrease in minerable grade is a function of not only the demand for copper, but also technological progress in mining and metal extraction in this case. Availability of ores has recently been subject to political factors, which were not the primary concern in the past. The petroleum of the Middle East is the prominent example. The metallic minerals are classified into three categories. The first one is the minerals free from these factors mentioned above. Iron and manganese belong to this category. The second category include aluminum, copper, nickel, cobalt, titanium, lead and zinc. These metals can be provided by the future progress in technology which enables the use of lower grade deposits. The third one represents the metals whose occurrence is geologically limited, and, thus, subject to the political factors. Niobium and tantalium are the example. In this article, I discuss these minerals in detail to give an outline of the factors which brought their concentration, distribution and availability. SELECTED MINERAL CONCENTRATIONS Iron Major iron ore deposits are the features of the relics of ancient continental crusts. They are found in all the continents where the Precambrian rocks expose. They do not occur in the oldest rocks (3,000my old) nor in the youngest ones (600my old). They are sedimentary rocks, normally, exhibiting alternations of bands of iron oxides (magnetite and hematite) or iron silicates (especially greenalite), and bands of silica, variously described as jasper, quartzite and chert. The best known banded iron ore deposits exist in the Lake Superior region of the North America, and their distribution extends at intervals to Labrador of Canada. Other examples occur in the U.S.S.R. Brazil, Venezela, India, the mainland China, and southern and western Africa (Liberia and Guines) (Table 1). Recently large deposits have been discovered in the Hammersley region of the western Australia, and northern and central region of Brazil. These ore deposits were originally formed in shallow seas where simple but abundant life existed. After the deposition, enrichment processes , related to tropical weathering, have brought about wholesale removal of silica to produce the deposits of best quality. Ores with 50-60% iron represent the best products in the Precambrian fields. Since local reserves of this high grade ores approach to exhaustion, benefication processes have been used effectively to upgrade much leaner ores (for example, taconite with 20-25% iron in Minesota, U.S.A.). There are two other types of iron deposits. Ironstone, a sedimentary rock containing goethite, chamosite and siderite, first appeared in early Paleozoic times in the stratigraphic record, and reached its Zenith in the Jurassic. Similar bedded iron deposits are found in the belt from the Cleveland Hills to Oxford in England, and in the "minette" oolitic ores of Alsace-Lorraine in Luxenburg and France. The iron content of these ironstones seldom exceed 30%, but they usually contain calcite and are self-fluxing. They also have phosphorous as undesirable impurity. Because of the grade and impurities, they require more fuel than the Precambrian ores. The third type of iron ore is associated with igneous activity and consists of magnetite and some hematite, and apatite. This deposit is believed to be a product of magmatic differenciation. It occurs in Kiruna of Arctic Sweden. The iron ore, therefore, present no global shortage problem. They extend to considerable depths. Their concentration is largest among the metals. If low grades were treated, the resource can be stepped up much substantially. Manganese Manganese is a ferro--alloy metal, thus, essential to the manufacture of sound steel. Manganese comes from manganese oxide and silicate ores. Many minerals contain manganese, but only a few oxides, silicates, and, in some places, carbonates (rhodecrosite) are mined as ore. Types of manganese deposits are bedded, massive,

Jan 1, 1982

By John A. Cherry

Groundwater monitoring conducted at an acidic uranium-tailings impoundment in Wyoming and at one in Ontario indicate that at these unlined impoundments situated on unconfined sand aquifers, there exist well-developed plumes of contaminated groundwater. In the literature similar results are reported for three other unconfined aquifers at mill sites in Wyoming. The plumes extend for distances of several hundred to a few thousand metres from the impoundments. They have a zone of low pH beneath and adjacent to the impoundments and a larger zone of near-neutral pH that extends to the outer limits of the plume. The low-pH zones are generally small compared to the neutral-pH zones because the advance rate of the fronts of acidic tailings-derived water is slower than the average velocity of groundwater which controls the advance of the high pH zone. The retardation of the acid fronts is a result of geochemical reactions that cause hydrogen-ion consumption in a slowly-advancing neutralization zone. Within each of the plumes, the low-pH zone has high concentrations of transition metals, heavy metals and radionuclides. In the neutral-pH zones all of the metals and radionuclides occur at significantly lower concentrations and are generally at levels much below those specified in national drinking water standards. An exception at two of the Wyoming sites is uranium, which exists at levels close to the drinking water limit. A second exception is ferrous iron at the Ontario site, which occurs at high concentrations throughout most of the plume. The carbonate alkalinity at this site is much lower than at the Wyoming sites. The field data indicate that even in very permeable aquifers with a low content of silt and clay, there is normally a considerable capacity for acid-front retardation. To take advantage of this capacity to control contaminant movement in the design, operation and decommissioning of tailings impoundments, it is necessary to be able to predict the rate of acid-front movement. This predictive task has two primary components. The first is to identify the important flow paths from the tailings through the groundwater system and the second is to determine the degree of acid-front retardation that will occur as the tailings-derived water moves along these flow paths. Relative to these two tasks determination of the effects of hydrodynamic dispersion is generally of lesser importance and simple approximations that do not involve field or laboratory tests are probably adequate. In order to effectively apply the acid neutralization concept to the prediction of subsurface contaminant migration at uranium-mill tailings, improved representations of hydrogeochemical behavior of iron and aluminum in the neutralization zone and of the consumption of hydrogen ions through reactions with carbonate and aluminum-silicate minerals are required. Along with the hydrogen ions contained in the tailings water the ferrous iron represents a large potential source of acid but the extent to which ferrous iron converts to ferric iron to produce acid is problematic. Detailed hydrogeochemical evaluation of existing contaminant plumes and the performance of laboratory experiments under appropriate redox conditions ore prerequisites for the improvement of predictive models. However, the existing field and laboratory data provide a basis for preliminary predictions of contaminant migration from acidic uranium tailings impoundments.

Jan 1, 1982

US 4,181,588 - Direct extraction of lead from lead sulflde ore. Ore is leached with a solution of ferric chloride and sodium chloride. The leach liquor is filtered to remove sulfur and gangue, then cooled in a crystallizer to precipitate lead chloride The slurry from the crystallizer is subjected to electrolysis to deposit lead chloride on the cathode plate. Solution from the electrolysis cell is used in the leaching step. M.M. Wong and F.P. Haver, assigned to US Secretary of the Interior Jan 1, 1980. 6 pp. (204-115). Filed: 1-4-79 (1,026).

Jan 1, 1982

By T. P. Meloy

Current coal cleaning technology uses heavy media (HM) for the recovery of coal in particles larger than 1/16 of an inch. Through the use of float sink measurements of the feed and products to commercial HM unit operations, a selection function, sometimes called Tromp curve in the coal industry, can be computed. Since the selection function is a plot f the probability of a particle appearing in the float versus the particle density, the slope of the curve will be sharper at the point where the particle has a 50% chance f appearing in the float. Thus, the separation will be better. Fine-tuning a unit operation or a circuit of unit operations requires that the selection function be accurately known. By current practice, it is difficult to obtain an accurate measure of the slope because, when the selection function is plotted versus density, the data forms an S-shaped curve which lacks data points near the 505 point of the curve. This lack of sensitivity in measuring the slope means that small recovery improvements cannot be detected; thus, only large improvements are measurable. Since most engineering improvements are small when individually considered, but large when aggregated ever many small improvements, this lack of measurement sensitivity rules out the slew march toward improved efficiency. This paper presents a method of analyzing heavy media selection functions resulting in a far more effective measure of the selective function slope. Furthermore, this improved method is applied to a number of industrial coal cleaning plants for both heavy media and heavy media cyclones. Using the work of Hudy (1968), and Deurbrouck and Hudy (1972), selection functions for individual unit operations in each plant are calculated as a function f particle size as well as density.

Jan 1, 1982

By David R. Maneval

The mining of coal in Alaska receives special treatment in the Surface Mining and Reclamation Act passed by the U.S. Congress in 1977 (PL95-87). Section 708 of the Act required that the National Academy of Sciences (NAS) perform a study of "Surface Coal Mining Conditions in the State of Alaska, In Order to Determine Which, If Any, of the Provisions of the Act Should be Modified with respect to Surface Coal Mining Operations in Alaska'. The special committee on Alaskan Coal Mining and Reclamation of NAS completed their study in 1980 and prepared their report (NAS, 1980). At this time, the Secretary of the Interior and the Congress have taken no special action with regard to either special regulations geared specifically to Alaska or to submitting special draft legislation to the Congress requesting amendment of PL95-87. The Alaska Department of Natural Resources (DNR) has drafted legislation which was submitted to and passed by the 1982 session of the State Legislature. The State regulatory agency has also drafted the requisite regulations necessitated by the amendments to the State's Basic Coal Mining Act. It is expected that by mid 1983 DNR will have applied for "primacy" to the office of Surface Mining, U.S. Department of the Interior (OSM). They will be submitting the amended State Law, the revised State Regulations and an operational plan as called for by OSM regulations. The presumption is that primacy will be granted to the State of Alaska under PL95-87. The Usibelli Coal Mine continues to be the only operational commercial mine for coal in the State of Alaska. It produced 7.26 x 10 kg (8 x 10 " T) of coal during 1981. The current mine was started in 1920 by Captain Lathrop, an early developer and pioneer in Alaska. It was continued by Emil Usibelli and was taken over after the death of E. Usibelli (in the 1964 earthquake) by his son Joseph Usibelli who is the current President of, the firm3 Their latest improvement is a 27.5 m (36 yd. )Bucyrus-Erie Dragline which handles most of the overburden removal. The coal is removed by a loader-truck combination. They are currently starting up the use of a unit train loading facility which handles forty cars every two hours. This loading system was a development necessitated by the Sun Eel Export contract. The Alaskan Railroad was a major cooperator in the development of the first unit train loading facility in Alaska.

Jan 1, 1982

By L. Alan Weakly

Page one is missing from book

Jan 1, 1982

By R. W. Schenker

INTRODUCTION Environmental and occupational safety and health requirements often have a major impact on the design of comminution circuits, leading to increased capital and operating costs and reduced income. A project's capital cost can be increased by environmental permitting delays and the addition of dust collection equipment. Income can be reduced by lost production during unscheduled plant shutdowns for dust collection equipment maintenance. Dust collection equipment must be carefully selected and sized to minimize impact on the project. The equipment performance must comply with environmental regulations and allow working areas to comply with occupational safety and health regulations. Unnecessary overdesign could jeopardize the project's desirability from an economic standpoint. The equipment must be sufficiently reliable to avoid interference with production schedules. This chapter provides practical information on the selection and sizing of comminution circuit dust collection equipment that is consistent with the requirements stated above. It presents information on the reasons and general principles of dust collection; various types of dust collection equipment; and design criteria for ventilation hoods, duct systems, fabric filter dust collectors, and fans. An example discussing the selection and sizing of dust collection equipment for a simple comminution circuit is also presented. REASONS FOR DUST COLLECTION Dust collection equipment should be installed in comminution circuits for a variety of reasons, some of which are discussed below. These include compliance with government regulations, minimization of housekeeping requirements, product recovery, and improvement in public and employee relations. Compliance with Government Regulations Dust emissions from comminution circuits must comply with both air pollution control and occupational safety and health regulations. The regulations that may influence the selection of comminution circuits are discussed in more detail in Chapter 2. Air pollution control regulations limit the emission of dust, as well as visible emissions to the atmosphere and the concentration of dust in the ambient air. These regulations minimize the degradation of air quality and impact to other environmental considerations such as the health of the general public,

Jan 1, 1982

By Muhammad O. Rahim

The importance of planning ventilation systems in modern coal mines cannot be overemphasized. Interconnected entries, airflows around and through mined-out areas, leakages through stoppings and other control devices, and the use of multiple fans all contribute to the complexity of ventilation network analysis. Fortunately, the availability of computer programs (e. g., Didyk et al., 1978; McPherson, 1966; Wang and Saperstein, 1970) has greatly reduced the difficulty in net- work analysis. However, to obtain a suitable solution to the practical problem, a ventilation engineer has to simulate various conditions based on the proposed ventilation layouts and the capacities of available fans. It is often a trial-and-error process, although engineering knowledge and judgement are required.

Jan 1, 1982

By R. W. O. Kersten

The shrinkage method of stoping with pillar support has been used at Agnes Gold Mine since mining commenced. Until recently, rock instability did not have any detrimental effect on safety or production. Presently sill pillars are failing not only on the current production levels, but also in shallower old worked-out areas. The incidence of failure raises the question as to whether the pillar dimensions are adequate at the current working depths and what their size should be at greater depths. The effect of pillar dimensions on the economics of the mining operation is of paramount importance because of the amount of ore that can be left unmined.

Jan 1, 1982

The mining industry views with the utmost concern, legislative or administrative action that inherently reduces the scope for exploration activity. Is there any basis for this concern in relation to Victoria? This paper will outline the role of the Department of Minerals and Energy and the main features of legislative provisions affecting exploration effort. The practical difficulties that confront the Department and explorers alike will be examined. The importance of industry representation to influence the direction that policy and legislative review might take, will be highlighted. Above all, the paper will establish that one essential duty of government is to ensure the provision of appropriate mining titles and security of tenure.

Jan 1, 1982

By Randall L. Neal

This paper discusses the impact of taxes at the state and federal level on typical on-shore oil and gas exploration economics in the USA. Taxes considered are the windfall profits excise tax, state production (or severance) taxes, state income tax, and federal income tax. Also considered will be market prices for oil and gas in the USA. The effect of government take as a percent of revenue, on rate of return, discounted Payout, and discounted cumulative cash flow is shown on the attached tables. The conclusion drawn is that tax laws, while rarely the most important factor to be considered when drilling a well, can have significant impact on the profitability of oil and gas ventures, and should be considered when determining where to drill. Hypothetical exploration wells were analyzed for the impact of tax laws on project profitability. The results of this study show that when factors other than taxes are postulated to be the same (such as producing rate, capital, operating costs, and prices), cash flow can vary by as much as 68% due to the differences in the tax laws. Other significant findings for the cases studied include: (a) that discounted payout varied by as much as 1.8 years, (b) that rate of return differed by up to 67% and (c) the total tax rate as a percentage of revenue had a maximum variance of 33%.

Jan 1, 1982

By L. A. Homeniuk, R. Bonnar

"The Fond-du-Lac uranium deposit is located on the northern rim of the Athabasca Basin. The uranium mineralization is, for the most part, confined to the Athabasca Group, which is underlain by pre-Helikian metamorphic rocks of the Western Craton.The deposit is characterized by a remarkable train of mineralized glacial erratics which led to the original discovery. The mineralization is present as a ""high-grade"" core and a diffuse ""low-grade"" aureole. The ""high-grade"" core occurs as a stockwork of steeply dipping pitchblende veins which strike N 50°E. Hematite, siderite and secondary silicate are also abundant. The ""low-grade"" aureole contains uraniferous goethite, argillaceous material and rare carbon buttons. Recent alteration to coffinite has taken place along the margins of pre-existing ore minerals.The ""high-grade"" core is 390 m long and 10 to 40 m wide, and is surrounded by an irregularly shaped zone of ""low-grade"" mineralization with a similar length and a width of up to 350 m.Comparing the Fond-du-Lac deposit to other unconformity-type deposits, several important differences can be noted:1. Ninety per cent of the ore is above the unconformity, in the Athabasca sandstone.2. The deposit is not associated with underlying graphitic rocks or a major structure.3. The clay-rich alteration zone is not extensive around the Fond-du-Lac deposit.Although there are differences with other Athabasca unconformity-type deposits, the high-grade portion below the unconformity suggests a common origin.The ore deposit is postulated to have been formed from uranium-bearing solutions which entered the stockwork of fractures. Following the reduction in part of these solutions by pre-existing carbonaceous matter and pyrite and/or chemical reaction with pre-existing hematite, deposition continued as a result of decreasing temperature and pressure. Subsequently, minor supergene redistribution of the uranium has taken place."

Jan 1, 1982

By Mirza A. Beg

The Piedmont physiographic province of east-central Alabama lies in a humid subtropical climatic zone. Such an area with mature land forms underlain by rocks rich in feldspars provides conditions condusive to development of gibbsite, a major source of alumina; a raw material for which the United States relies on foreign suppliers for 85 percent of its needs. Gibbsite occurs in the northern and inner sections of the Piedmont Province of Alabama in Coosa, Clay, Randolph, Chambers, Elmore, Tallapoosa and Lee Counties in soils and saprolite derived from amphibolites, granites, feldspathic hornblende gneiss and other gneissic rocks. The major occurrences of gibbsite are in areas underlain by hornblende gneiss in Chambers and Randolph Counties. This region provides the proper physiographic and mineralogical setting for large areas containing up to 25 percent of saprolitic gibbsite. These areas provide potential sources of alumina that could be used to meet the United States future needs. Narrow zones and pockets rich in gibbsite also occur in soil and saprolite derived from areally restricted feldspar rich zones of narrow linear amphibolites in the inner Piedmont and feldspathic zones in various granites distributed throughout the Piedmont.

Jan 1, 1982

By C. Richard Tinsley

Like most minerals, coal is inherently a demand-limited commodity. The very sedimentary nature of its occurrence implies greater availability potential than demand. But this situation is overridden by economics among fuels, between coals, and within coal blends. Such considerations make coal forecasting a very hazardous profession indeed. THERMAL COAL If one thought that the lead times involved with a mining project were very long, one has obviously not been exposed to the planning process in the electric generation business - a process seriously confounded by shifts in load growth, environmental pressures, capital intensity, security of fuel sourcing, inter-fuel economics, and so on. But as a general rule, the near-term forecasts for thermal coal can reliably be based on a bottom-up, plant-by-plant analysis. Cement plant conversions can also be reasonably estimated next in order of reliability, although they have a much wider spectrum of coal qualities and fuel sources to choose from with a notably higher tolerance for sulfur and ash. Finally, industrial demand can be assembled from the estimates for conversions by pulp/paper plants, chemical plants, etc. The industrial sector is harder to estimate, since it may involve small boilers or dual-fired units. Assessing demand in the Pacific Rim is relatively a straightforward process in the near term because the major importing countries are all located on the Asian continent with either negligible or very minor (yet stable) indigenous coal production, (itself often operated on a subsidized basis). Furthermore, all imports are seaborne. These major importers are Japan, Korea, Taiwan, and Hong Kong with Thailand, Singapore, and Malaysia up-and-coming consumers. The suppliers to this market all have substantial reserves to back up decades of exports to these countries. Australia, the US, Canada, South Africa, China, and the USSR dominate the supply side. The second oil-shock of 1979/1980 has convinced the importers that reliance on oil can be expensive and eminently interruptible. Thus, they are determined to diversify away from oil' to nuclear and coal for generating electricity and for coal for other purposes where possible. This trend is seen to continue even in the face of the oil glut worldwide and oil-price reductions in early 1982. But the importers are also convinced that reliance on one coal source and, in particular, one infrastructure route for the coal chain from mine to consumer can be equally expensive and interruptible. Strikes in the US and Australia; excessive demurrage at certain ports; relegation of coal to a lower priority on multiple-use railroads in the USSR and China; and concern over escalation on high-infrastructure or high-freight coal chains are among the risks worrying the importers. As a consequence, Pacific Rim thermal coal purchases are being allocated among supplier nations, between ports, and within each country. An example of Japan's shift away from Australia and toward the US and Canada is shown in the estimates in Table 1. But the confidence of the import estimates deteriorates sharply beyond the plant conversion timetables and construction schedules in the near term. If part of the second generation of coal-fired power plants can handle lower-energy coals, the field of suppliers could widen to accept sizeable tonnages from Alaska, Wyoming, Alberta, or New Zealand resources. These supply sources generally have some infrastructure or freight advantage to compensate for their lower quality and to compete on a delivered energy-unit basis. These also offer diversification in sourcing. And the possibility of coal liquefaction in Japan further widens the sourcing network. A great number of Pacific Rim coal forecasts have been generated, especially for Japanese thermal-coal imports which are expected to grow strongly in the 1980's. Since the Japanese themselves have not yet settled their energy policy, the exact numbers are hard to call. Nevertheless, at 50 million tonnes of imports in 1990, Japan would consume 50-60% of the total Asian thermal coal imports as shown on Tables 2 and 6. The next most important consumers are the "island" nations of Korea, Taiwan, and Hong Kong (see Tables 3-5). All three are embarking on power plant developments usually with captive unloading facilities, capable of accepting more than 100,000-dwt vessels. Korea, with no-indigenous bituminous coal, is not especially enamoured with US coals, which are deemed too heavily loaded by freight and infrastructure costs -- up to 70% of the delivered price. Thermal coal contracts are presently split to Australia (70%) and to Canada (30%). Korea Electric Power Co. is already considering second-generation boilers capable of burning lower-quality coals than the present standard. Korea does burn domestic anthracite.

Jan 1, 1982