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By Vas Choudhry

INTRODUCTION Traditionally mineral processing equipment has been procured based on (equipment) specifications prepared by the engineers. As newer materials of construction are being used for equipment manufacture and plant control systems become more sophisticated, the need for thorough and detailed specifications is greater than ever. For example, it is not uncommon to find plants looking at grinding circuits consisting of semiautogenous mills with variable speed, gearless, drives of large horsepower. Technical specifications for the mill, wrap- around motor and control system must, therefore, be carefully prepared to ensure that the respective equipment supplied by vendors meets overall grinding needs. Various engineering and design companies have expended considerable time and effort in developing the specification format. Equipment manufacturers have also given significant effort to developing data sheets aimed at collecting information regarding not only the duty of the equipment, but also the conditions under which it will be operated. As engineers moved from one company to another, the specification format became cross-fertilized and further developed. As a result, specifications on file with various engineers have improved considerably over a period of time. Equipment specifications from earlier projects are commonly used as a basis for tailoring new ones. To keep equipment specifications short, general technical considerations are often compiled as separate specifications. For example, general considerations applicable to the design, manufacture and supply of the mechanical equipment are consolidated under "Standard Requirements for Mechanical Equipment” and included along with that specified for purchase. As the economic feasibility of the project has been established during earlier studies, purchase-related activities can be initiated following completion of the specifications. Procurement itself is a major activity, however, in this chapter only those activities directly related to the purchase of equipment will be discussed. PREPARING EQUIPMENT SPECIFICTION Specification for process equipment or machinery is written in such a way as to define exactly what is required of the equipment. Generally, mechanical

Jan 1, 1986

By Nick Barton, Khosrow Bakhtar

Two plate load tests of 1 m2 area were per- formed in a pressure tunnel at the Rocky Mountain Pumped Hydro Project. Reaction for the 250 tons loading in this 10.5 meter diameter tunnel was provided by deeply anchored, diverging rock bolts, eight per load frame. Pressure build up to 2.5 MPa was provided by circular flatjacks. Rock deformation was recorded at depths of approximately 0.3, 0.9, 1.2, 1.8 and 3.3 meters using axially located multiple position borehole extensometers. The tests were performed in representative units of massive shale and thin to medium bedded siltstone. Stress was built up in four equal steps to 2.5 MPa, held constant for one week for creep monitoring, then unloaded, reloaded and unloaded over a period of one day. The most deformable unit was the massive shale which exhibited 1.3 mm of permanent deformation at the surface after the first loading and unloading cycle, which included 0.36 mm of creep. After the second loading-unloading cycle, the permanent deformation had increased to 2.6 mm, following a maximum deformation at the surface of approximately 3.6 mm. At the maximum stress of 2.5 MPa, the tangent modulus averaged 0.4 GPa when loading, and 0.3 GPa when unloading. The thin to medium bedded siltstone exhibited only 0.17 mm of permanent deformation at the surface after the first loading-unloading cycle, which included only 0.05 mm of creep. After the second loading-unloading cycle, the permanent deformation had increased to 0.27 mm, following a maximum deformation at the surface of approximately 0.53 mm. At the maximum stress of 2.5 MPa, the tangent modulus averaged 6.2 GPa when loading and 21.9 GPa when unloading.

Jan 1, 1986

By S. L. Huang, J. D. Rockaway, N. B. Aughenbaugh

Shale has long been recognized for its tendency to swell when exposed to the atmosphere. Interaction of moisture with exposed shale strata can cause serious ground stabi1ity problems, since the initial strength of a shale is reduced if the material is sensitive to moisture variations. In this paper, the authors present a classification system to estimate the response of swelling generated within shales. This characterization of the swelling potential is based upon plasticity, susceptibility to moisture, mineralogical constituents of clay size particles, and fabric. Use of this classification system in conjunction with other existing rock properties tests will provide data for more rational engineering design.

Jan 1, 1986

By James F. ` King

This paper reviews the changes which have taken place in the supply of smelter-grade alumina and refinery-grade bauxite over the past twenty years. It highlights the current situation and identifies some trends which are to be expected in the medium- and longer-term future.

Jan 1, 1986

By M. Moss Stanley, Ronald P. Klepper

The objective of this chapter is to provide data that will assist in the selection and sizing of equipment utilized in the filtration method of separating solids from liquids. It should be recognized at the outset that in some situations more than one option may be available to achieve the target desired. In some cases purely technical objectives may be sacrificed because of cost considerations, design factors or other elements in order to satisfy optimization within the flowsheet and/or to provide bottom line results. Before considering available options, and prior to the next step of sizing out the selection, the operating criteria should be set down. The test work to develop selection and sizing data will be based on this data and the final products desired. This will help to establish initial parameters. A. GENERAL DATA 1. Material to be filtered: a. Solids b. Mother liquor 2. Feed rate of slurry in GPM 3. Density of slurry: Sp. Gr. Solids 4. Slurry: Temp. pH Viscosity 5. Source and method of feed 6. Valuable product: Solids Filtrate Both 7. Details on: Volatility Toxicity Stability 8. If flocculant is indicated, what has been used? 9. Describe product: (i.e., fibrous, cor 10. rosive, abrasive, inflammable, explosive, pasty, 11. Does product alter or require special environment during transport? 12. What type of filter media has been used successfully? 13. Is there any objection to use of a filter aid? If not, is there any preference? B. SOLIDS DATA 1. Sp. Gr. Bulk density 2. Screen analysis 3. Desired percentage moisture in cake 4. Solubility (state conditions): In mother liquor In wash water 5. Description of cake: (i.e., amorphous, fibrous, crystalline, colloidal, gran¬ular, thixotropic, 6. Special requirements for moisture de¬termination? 7. Can solids be compressed during dewatering? 8. Proposed product handling 9. Subsequent thermal drying or other pro¬cedure C. FILTRATE 1. Is separation of wash water and mother liquor desirable?

Jan 1, 1986

By S. Majumder

The longwall face supports are provided to prevent the caving of the immediate roof at the working face. The thickmess of the immediate roof may be obtained from the working height and the average bulking factor. A strong bed, capable of withstanding maximum bending moment among the beds within the above roof, can be identified. The load on the strong bed may be obtained by finding out the overlying beds that will rest on the former during sagging. The limiting span, L, for this unsupported loaded bed, as a beam with built-in ends, can be calculated. The support density required at the supported span (face to goaf edge), a, during the first fall, is now estimated with a view to have a safety factor 2 at the face end, when bending failure occurs at the barrier end. However, the above value is inadequate to provide necessary safety margin against bending failure at the face end, during the subsequent cavings as cantilever, for L/a less than 20.6. d For the latter case a separate expression is derived.

Jan 1, 1986

By James M. Williams, Michael E. Zellars, Arthur J. Roth

INTRODUCTION Our present estimates of world P205 consumption for all uses show an average annual growth rate of approximately 1.9% per year. The estimated 1985 consumption of 41.5 million tonnes of P205 is predicted to increase to 57.1 million tonnes of P205 by the year 2005, which represents a growth from 157.7 million tonnes in 1985 to 217 million tonnes of phosphate rock in 2005. The present situation of oversupply and extremely weak phosphate product prices is, however, expected to continue in the short term and a normal supply/demand balance may not be achieved until after 1990. The growth in P205 demand, in conjunction with the higher cost of replacing low cost mines as they are depleted, will place economic pressure on world farm economies through the increased cost of phosphate fertilizers. The availability of rock supply is not the challenge; rather, it is the economics of new rock supply. This economic challenge of providing new rock supply is by no means limited to the United States. Even in centrally controlled economies, the cost of rock from domestic mines of marginal quality and economic viability, coupled with burdensome infra¬structure requirements, may result in tonnage additions at very high cost. Although government subsidies to offset higher production cost is a factor in some countries, world production in the next 20 years will be directed, if not governed, by economic factors. Established infrastructure, good quality reserves, and existing operations will provide a competitive advantage for new prod¬uction. It is our opinion that the current world supply structure will remain relatively stable through 2005, in that most of the traditional suppliers will retain supply roles. U.S. rock production, although it is not expected to grow beyond the present level, will still be a major contributor to world supply. Although dramatic changes within mining, fertilizer production and farm economics may appear disruptive, the current supply scenario will, in general, continue with the major issue being production economics. WORLD DEMAND Demand for P205 by region in the world has been estimated using projections of population, crops and yield, arable land, economic and other data as a basis for future demand projec¬tions by Blue-Johnson and Associates, our col¬laborators on a recent multi-client study. Non-fertilizer P205 demands were estimated in the same general manner. These estimates of future demand are based on an assumption of reasonable world political and economic stabil¬ity, debt repayment requirements maintained at workable levels, and resolution of problems in the agricultural economy to a point where normal supply/demand forces can interact freely to provide a basis for continued P205 supply. The results of these studies indicated an average growth rate of 1.9% per year through the year 2005. This growth could be as low as 1.5% per year, or as high as 2.5% per year. It is our opinion that the estimated rate of 1.9% per year is most probable. This moderate growth rate considers both the major economic constraints facing the world agricultural industry today and the general problem of affordability of fertilizers and other crop inputs. WORLD SUPPLY There are adequately defined world reserves of phosphate rock today to provide supply well into the future, even at much higher levels of demand than presently projected. Using the U.S. Bureau of Mines estimates, which are based on stringent criteria for definition of reserves, the present world reserves base is approximately 35 billion tonnes. Identified resources raise the potential for production by orders of magnitude. Potential resources based on geological trends, and including offshore deposits, would again result in orders of magnitude increases in rock resources. Morocco leads the world in reserves base with approxi¬mately 21 billion tonnes. The U.S. is second, followed by the Republic of South Africa and Russia. These four countries control about 87%

Jan 1, 1986

By M. J. Ross, D. A. Norrgran, J. A. Wernham, J. N. Orlich

INTRODUCTION Laboratory testing for magnetic concentration circuit design is a requirement, just as it is for most other types of concentration. Natural variations in raw materials allow on1 y the broadest of generalities to be made regarding magnetic separation. Further, magnetic fields are geometry dependent, leaving fundamental models of a separator overly dependent upon the exact conditions for which the models were derived. Despite this, an understanding of the basics of magnetic separation and of the problem to be attacked can result in rapid progress towards the final circuit design with a relatively simple testing program. Magnetic Separation Basic Principles A magnetic field can readily be understood in terms of lines of flux. A familiar demonstration of these lines of flux is the pattern of iron filings on a sheet of paper when a magnet is placed underneath. Lines of flux2 are measured in Gauss (1 line/cm2) or Tesla (10000 gauss). Regions of high field strength have a greater number of lines. Field direction is indicated by a convergence of lines. When a particle is placed in a magnetic field it cuts the lines of flux and alters them in one of three basic patterns. These patterns are referred to as diamagnetic, paramagnetic and ferromagnetic. Diamagnetic materials have electronic structures which react to oppose an applied magnetic field. This opposition acts to locally reduce the applied field slightly. The visualization is that lines of flux diverge and go around the particle. Because of this divergence or opposition, a diamagnetic particle will tend to move towards regions of lower flux density. That is to say that the particle will be repelled by a magnetic field. Aluminum oxide and napthalene are examples of diamagnetic materials. Paramagnetic materials have an electronic structure which increases an applied magnetic field. Although these materials also exhibit diamagnetism, they have randomly oriented impaired electrons which align with the magnetic field. The resultant local field enhancement is significantly larger than the diamagnetic opposition. The visual-

Jan 1, 1986

By Barbery G., A. Maachar, M. Bourassa

Laboratory testing for flotation circuit design is carried out on a routine basis in a large number of lab- oratories throughout the world. Usually a sample of ore, assumed to be characteristic of the material to be processed in a future plant, having a mass of the order of a few kilograms, is ground in a batch ball or rod mill, in the presence of water and some re- agents (for pH control, etc. .. ); after dilution to the adequate solid concentration, the resulting slurry is transferred into a laboratory batch flotation machine, having a volume which can vary from 0.5 to 8 10 -3m3. Various types of machines are in common use, manufactured by the same companies that market industrial size flotation machines. The operation of flotation in the laboratory is carried out by an experienced technician, who uses parameters such as impeller rotation speed, air flowrate addition, froth height, froth removal rate, in conjonction with reagent addition sequence, to "test" the ore. After flotation, the froth products ("concentrates"), and the solids remaining in the cell are filtered, dried, and analyzed for the various elements of interest. For flotation circuit design, a kinetic test is usually carried out, in which the froth products obtained at various times are collected to assess the time response of the ore in the laboratory machine with the combination of reagents used. Although this description is rather sketchy, it enables to outline some of the major difficulties in using laboratory data for flotation circuit design: 1. ore sample representatively 2. feed preparation procedure (laboratory compared to industrial scale) 3. laboratory procedures (type of ma- chine, type of operation, experimental errors. . . ) 4. flotation machine scale-up 5. flotation kinetic scale-up 6. flotation circuit design using laboratory data These various points will be discussed in the present paper, in order to stress the problem areas as well as possible solutions. ORE SAMPLE REPRESENTATIVITY It has been stated many times that one of the major problem in designing a flotation circuit is the representatively of the sample to be taken. Sampling of an ore body during prospection and evaluation is a specialized field, which has been progress in with the introduction of geostatistics. The application

Jan 1, 1986

By T. Kelly

The Cannon Mine is located in Chelan County, near Wenatchee, Washington, at the eastern foot of the Cascade Mountains. The mine is situated about two miles from the Columbia River, in the arid Columbia River Valley. Two hydroelectric dams provide electricity for the area, the Burlington Northern Railroad has a switch yard and loading facilities in Wenatchee. Approximately 25,000 people live in the area. The principal industry is fruit farming. Underground mining techniques are used to provide feed for a 2,000 tpd flotation concentrator at the site. The techniques are low- cost, high productivity methods which allow for a high extraction rate along with a high rate of recovery of the minable reserve.

Jan 1, 1986

By Dale R. Ralston, Roy E. Williams, Gerry V. Winter, George L. Bloomsburg

Ground water inflow into a mine and the re¬sultant impact on district hydrology can be pre¬dicted on a site specific basis once the ground water flow systems at the site are sufficiently well under¬stood so that a valid conceptual model can be de¬veloped. Ground water flow systems are controlled by the hydrogeologic properties of the materials at the, site, including hydraulic continuity along flow paths, and boundary conditions. Preliminary delin¬eation of hydrostratigraphic units for conceptual models frequently can be based on surface water data; specifically, spring locations and the gain-loss reaches of streams. Quantitative predictions of mine water inflow and its impact on regional hydrology require col¬lection and analysis of numerous types of data. Hydraulic conductivity must be defined quantita¬tively both parallel and perpendicular to bedding as well as areally for each hydrostratigraphic unit. The characteristics of the Davis shale in case his¬tory number 2 illustrate this concept very well. The storage characteristics also must be determined for each hydrostratigraphic unit and the potential or hydrostatic head should be quantified vertically and areally for each unit. The potentiometric measure¬ments in the Bonneterre Formation as discussed in case history number 2 illustrate this point. The data collection and data analysis techniques constitute the weak link in the analysis of mine inflow and district impact. The technology for char¬acterizing a mine site in the field has lagged behind the technology for mathematical simulation; we at¬tribute this development to the fact that computer modeling is relatively inexpensive compared to field data collection and analysis. On-site tests provide the best means of quan¬tifying hydraulic conductivity parallel to bedding and the storage characteristics of the unit. Pump tests with multiple observation wells provide the best information from on site tests. Hydrogeologie boundaries can be located from such multiple well tests. Multiport piezometers provide a means for determining the vertical potential in a single borehole. Borehole geophysics can facilitate the def¬inition of hydrostratigraphic units. Vertical hy¬draulic conductivity is difficult but not impossible to quantify with existing field test methods; labo¬ratory tests of cores fail to give a value represent¬ative of the field situation. The storage characteristics of a confined (artesian) hydro¬stratigraphic unit can be difficult to quantify when pumping changes the confined unit to an uncon¬fined (water table) case after depressurization and dewatering. Transmissivity and storage coefficient can be approximated to some extent for given field con¬ditions by computer modeling if enough is known about hydrogeologic boundaries. Modeling can be used in a trial-and-error approach to match transmissivity and storage coefficients to existing water level data corresponding to estimated discharge rates. A solution can also be obtained using a tech¬nique referred to as the inverse method. Unfortu¬nately, such a solution is seldom unique. Fracture flow models exist but practicality usu¬ally necessitates reversion to a basic Darcy flow model. Data requirements for fracture flow models could be difficult to fulfill where fracture aperture, spacing, orientation, and length are required. Ob¬taining such data at depth prior to mining would be impossible for any mine simulation in fractured media. We are of the opinion that most fractured media simulations can be accomplished using con¬ventional Darcy flow models by viewing the field problem on a macroscopic scale. The real challenge is to delineate hydrostratigraphic units properly in the field. The question of whether a broken-up fault zone is an aquifer or a barrier boundary is seldom simple. The fractures usually can be treated as an equivalent porous medium in either case. Only a few techniques exist for predicting un¬derground mine water inflow. These techniques fre¬quently are designed to evaluate shaft or tunnel inflow under steady-state head conditions in a sin¬gle layer rather than in multiple hydrostratigraphic units. Few computer programs exist that have the

Jan 1, 1986

By Dale R. Ralston, Roy E. Williams, Gerry V. Winter, George L. Bloomsburg

It is imperative that the hydrogeologic frame- work and the ground water flow systems of a Potential mine area be investigated prior to initiation of mining. Such investigations are necessary so that potential mine water inflow problems can be anticipated and controlled. Obvious difficulties can arise if large inflows of ground water occur in underground workings. Costs of water removal and disposal, if not foreseen and included in economic planning, can severely limit or eliminate profit from a mining operation. Safety problems associated with large inflows are an additional potential problem. The inflow of water into a mine necessarily alters the associated ground water system. The inflow also may impact nearby surface water regimes, depending upon the interaction of the surface water and ground water systems. The inflow of water into a mine inevitably causes a decline in the ground water levels in the vicinity of the mine. This decline may be restricted to a small area or it may extend a considerable distance, depending upon the hydrogeologic properties of the associated hydrostratigraphic units. A decrease in surface flow will result if the area of ground water level decline intersects a stream or spring that is hydraulically connected to the ground water system. Mine inflow problems historically have been evaluated after-the-fact. Premining hydrologic investigations only recently have been initiated. Brown's (1977)* report on anticipated hydrologic impacts of oil shale mining in the Piceance Basin of Colorado is an example of premining hydrologic planning. Observed difficulties inherent in designing a data collection network and then utilizing the data to predict mine inflow have led us to the preparation of this manuscript. This manuscript reflects a two-phase effort. The first phase describes and develops analytical and numerical techniques for mine inflow prediction. Emphasis in this section is placed on the selection and application of data collection techniques and data analysis procedures. The second phase applies the prediction technique(s) developed during phase 1 to two existing mines. The objective of phase 1 efforts is to evaluate the hydrologic variables associated with surface water systems and ground water systems that can affect the inflow of water into an underground mine. Subsequently these variables are incorporated into predictive techniques for estimating underground mine water inflow and its effect on associated ground water and surface water systems. The specific objectives of phases 1 and 2 are to: 1) Determine the hydrologic parameters required for predicting underground mine water in- flow and the potential effects of the inflow on surface and ground water systems. The hydrologic parameters represent both premining and past initiation conditions. 2) Outline methods for obtaining the necessary input data for the predictive techniques in pre- mining and post initiation periods. 3) Present existing numerical techniques for predicting underground mine water inflow including assumptions Ad required input. 4) Evaluate existing numerical techniques previously tabulated based on their applicability to mine water inflow prediction. 5) Attempt to develop analytical techniques for predicting underground mine water inflow. 6) Develop, through modification of existing models, a general mathematical model as a numerical technique for predicting underground mine water inflow and the resultant effects on surface and ground water systems. 7) Apply the predictive techniques to two existing mines selected for this purpose. 8) Compare the predicted inflow rates to measured inflow rates at both mines. 9) Compare predicted impact on district hydrology to observed impacts where possible. 10) Evaluate the predictive technique.

Jan 1, 1986

By Jerry L. Hodgson

This paper presents an application case history of the planning methods used for developing, costing and scheduling an underground hydro- electric pumped storage facility in weak rock. This method covers the system configuration, excavation methods and costs, initial support systems and final lining systems. This study was performed by the Omaha District, Corps of Engineers for the proposed Gregory County Hydro- electric Pumped Storage Project, and presents a synopsis and the results of the studies performed.

Jan 1, 1986

By Martha Caudill

When planning for the required amount of storage capacity at a proposed open-pit coal mine or determining when additional storage capacity should be added to an existing operation, the decision must be based on a breakeven- analysis relating the discounted cost of capital for storage capacity to the marginal costs incurred for additional crew call-outs on weekends and demurrage charges. The model developed in this paper uses simulation techniques applied to two coal mines in the Powder-River Basin to determine how much storage capacity is needed and when it is needed. The paper also generalizes the simulation model so that it can be applied to any type of open-pit mining operation. Two important results of the model are (1) all of the mines in the Powder River Basin have excessive amounts of storage capacity, and (2) management is provided with estimates of the total number of hours that crews will have to work on the weekends as annual tonnage increases, and the levels of demurrage costs incurred.

Jan 1, 1986

By David W. Lillie, Pier A. Abetti

This paper reports on a study of the impact of fast growing new technologies on the market for copper over the next 15 to 20 years. The greatest threat is clearly the inroads of fiber optics on the traditional market for copper in communication cable. Opportunity areas identified include heat pumps, solar power and heat, desalination, electric vehicles and others. The overall impact of new technologies on copper is expected to be modestly positive if adequately encouraged by effective R&D.

Jan 1, 1986

By Clement K. Chase

Although flotation is the generally accepted process employed to recover gold and silver as well as copper, lead, and zinc from primary sulfide ores, the metallurgical requirements for the treatment of massive sulfide ore deposits differ markedly in many respects from those employed for the more common disseminated porphyry deposits. In Arizona, some properties classified as other then massive sulfide deposits because of mining and geological characteristics have produced mill-feeds similar to those from massive deposits. Several such occurrences are noted. The process requirements for massive sulfide deposits and unique mill-design implications are discussed in the perspective of world-wide economic considerations and the individual regional metallurgical and economic constraints in the United States.

Jan 1, 1986

By Neville G. W. Cook, John Kemeny

Utilizing the principles of elastic-brittle fracture mechanics, stress-displacement relationships are derived for an elastic solid containing a slip plane consisting of various configurations of collinear arrays of cracks. These models take into account the heterogeneous nature of slip planes as observed in the lab and in the field, and are relevant to the behavior of rock containing faults, joints, bedding planes, and fractures. All of our models exhibit slip weakening behavior, and show regimes of both stable (aseismic) and unstable (seismic) deformation. For given configurations of cracks and applied boundary conditions, our results show explicit ly the energy released through unstable crack growth. For instance, it is found that two equal length cracks growing together release more seismic energy than, say, a large crack growing into a small crack. Also, by allowing cracks to coalesce, our models show multiple stick-slip events without crack healing or other geochemical means.

Jan 1, 1986

By R. Fred Pena

The Tower Mill has proven to be a grinding machine with a demonstrated application flexibility. Variations in applications have proven to be numerous. This mill was originally intended for fine grinding applications. Subsequent testwork and installations have demonstrated the mill can be utilized in place of ball mills as secondary mills. The following lists a few of the circuits tested: 1. Tower Mill secondary receiving feed from a primary SAG mill grinding stage. 2. Tower Mill as tertiary grind unit following a rod mill/ball mill. 3. Tower Mill as secondary grind unit following a primary ball mill. 4. Tower Mill as a limeslaker. 5. Tower Mill grinding as a primary unit taking limestone crusher discharge. Applications demonstrate the mill is energy efficient and is sensitive to the following consideration: 1. Circuit chosen. 2. Top size of feed. 3. Product size required. 4. Classification equipment performance. 5. Media size required. 6. Media type required.

Jan 1, 1986

By Gordon M. Matheson

The factors which control chimney subsidence sinkhole development in weak rock were assessed by analyzing the characteristics of approximately 3000 chimney subsidence features along the Colorado Front Range. The area of study included features developed over abandoned mines in the Colorado Springs Coal Field, the Boulder Coal Field, and the Foothills District. The approximate locations of the areas studied are shown in Figure 1. Data were collected for sinkholes occurring over both room and pillar, and retreat mining areas in coal seams with a wide range of dips. The location, size, and approximate time of development of each sinkhole were documented. From these data, relationships were developed which describe the time rate of observable sinkhole development and the relative location of sinkhole development with respect to mined height, overburden thickness, and type of mining for relatively flat-lying coal seams. In addition, the observed locations of sinkhole development over steeply dipping coal seams were assessed for portions of the study area.

Jan 1, 1986

By B. F. Westfall

Throughout the 1960's and 1970's world trade grew rapidly, reaching a peak of USS1.8 trillion in 1980. Since then the world recession of the early 1980's shrunk trade to about US$1.6 trillion. The reduced cash flow to developing economies made it difficult to service their huge international debts, Nowadays lenders are reluctant to grant Third World countries additional credit. The shortage of export financing, plus trade barriers set up by developed countries, is further inhibiting international trade. Therefore, countries are turning to new and creative alternatives to financing imports of consumer as well as of investment goods. Non-cash transactions, including different forms of countertrade, are rapidly growing alternatives to traditional trade financing patterns. In 1983 about 30% of international trade, or close to US$600 bill ion, were presumably done by non-cash transactions, up from barely 2% in 1976. By year 2000, half the world trade is likely to be conducted on basis of barter. As of mid-1984 some 88 nations used countertrade regularly and Governments of at least 15 Latin American countries had arranged or mandated commercial countertrade.

Jan 1, 1986