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By C. A. Moseley, M. B. Kahle

The Gulf Coast Region has been the center of extensive lignite exploration and development activity in the past 10 years. Currently, 27.2 Mt (30 million st) of lignite are mined annually, the majority of which is uncovered by large walking draglines. Projections indicate that production could reach 125 Mt (138 million st) by 1990. As mining moves to deeper depths, removal of overburden becomes the decisive factor in mine planning and cost. The geology of a region plays a key role in the selection of an overburden removal system. While alternate stripping methods must be analyzed to determine the most economical and operationally sound method, so far bucketwheel excavator systems seem to be the best method for removing large volumes of soft, unconsolidated material that is found at projected mining depths in the Gulf Coast region. Geology of Gulf Coast Lignites Extent Distribution of the principal tertiary lignite-bearing deposits in the Gulf Coast Lignite province extend from the Texas-Mexico border to the Alabama-Georgia state line (Fig. 1). The lignite-bearing strata includes portions of eight states: Texas, Louisiana, Arkansas, Missouri, Kentucky, Tennessee, Mississippi, and Alabama. Lignites occur primarily in the Wilcox, Claiborne, and Jackson groups in the Gulf Coast. The uppermost strata of the Midway group in Mississippi and Alabama also contain significant lignite resources. Reserves Commercial lignite seams in the Gulf Coast Lignite province range from 0.6-3 m (2-10 ft) in thickness. The estimated lignite resources throughout the Gulf Coast in seams greater than 0.9 m (3 ft) in thickness and up to 61 m (200 ft) in depth currently are estimated at 32 Gt (35 billion st). Table 1 shows these resources by state. Quality Lignite quality can vary within individual mining areas and seams. However, trends in quality occur because of the depositional environment, age, and west-to-east geographical location. Better quality lignites occur in the Wilcox group in Texas and Louisiana. Poorer quality lignites occur in the northern regions of the Wilcox group and those of the geologically younger Claiborne and Jackson groups. Environmental Conditions Gulf Coast province environmental conditions are ideal for successful mine reclamation. The lignite occurs in flat to moderately rolling terrain, a topography easily reproduced from the spoil dumps or spoil rows developed during the mining operation. High to moderate rainfall facilitates rapid revegetation. Evidence from current mine reclamation programs and ongoing test plot studies indicate that mined lands can be reclaimed to reach premining productivities. Sometimes productivities are even greater than that of premining conditions. Existing Mining Methods Present Mines & Production There are seven active mines in the Gulf Coast province, all located in Texas (Fig. 2). Lignite

Jan 8, 1983

By Fred Leighton

Miners have long known that rock noise, or the popping and cracking of the rock commonly heard during mining, can indicate instability of the mine structure. For many years, miners have "listened" to the rock talk and many times have interpreted changes in rock noise activity to be a warning of failure and have retreated from the potential failure area. Microseismics, or the study of rock noises, was begun in the early 1940s partly because of this historical fact. Microseismics is based on using geophysical equipment to detect and analyze rock noises on audible and subaudible levels. Thus, these systems are much more sensitive than the human ear and "hear" even more of the rock "talk" than do miners. Research has shown that micro-seismics can be used to precisely locate portions of a working area that are generating rock noise, and that rock noise release rate information from each area can be used to analyze its stability. On the basis of research results, microseismic systems are now commercially available and have been purchased and installed in many mines around the world. Introduction When a rock mass is subjected to changing stress conditions, such as those caused by mining, small-scale adjustments occur within the rock that release seismic energy. When this energy is in the audible range it is called rock noise. Those areas where stress changes occur are also the areas of the structure most likely to fail. Individual rock noises can be detected and analyzed to determine their precise location relative to the mine structure. Over a period of time plots of this data provide a pictorial representation of where stress changes are occurring. This is because rock noise activity tends to concentrate in those structure areas most actively adjusting to the changing stresses. Since these areas are the most likely to fail, they can be pinpointed and mapped relative to the structure. Rock noise rates, or the number of rock noises occurring per unit of time, also tend to vary dramatically before failure. Thus, the ability to locate the source of individual rock noises provides a means of determining where failure may occur, and rate counting within each area offers a means of assessing when failure may occur. This information, properly treated, can be used to avoid, control, or warn of impending failure. Successful applications of this technique have provided recent impetus to the effort of developing microseismics into a practical, reliable, and economically feasible tool. The phenomenon of naturally occurring rock noise was discovered in 1938 by Obert and Duvall (1939) who were measuring seismic velocities in mine pillars. Seismic energy other than what they were generating continually registered on their recording equipment. Further study by these researchers showed that the extraneous seismic energy being recorded was from rock noises that were being generated within the rock in highly stressed areas. Pursuing this interesting phenomena both in the laboratory and in the field, Obert and Duvall documented the dramatic change in rock noise rate before failure (Obert, 1941). They also established the fact that, in many instances, rock burst failures could be predicted by monitoring and listening to the rock noise activity in rock-burst-prone areas (Obert and Duvall, 1945). These early efforts clearly showed that microseismics had great potential as a tool for measuring or estimating mine structure stability. Extended testing, however, showed that sometimes rock bursts occurred with no apparent microseismic warning, and that at other times sharp increases in microseismic data were not accompanied by failure. Also, because precise location of individual rock noises was not possible at that time, one never knew where the failure was going to occur, only that failure near the observation point was likely. Thus, while the technique clearly offered promise, it was not considered practical then. In the mid-1960s, the Bureau of Mines undertook a new research effort to improve the microseismic technique. Major improvements were judged possible mainly because new and vastly improved electronic and system components had become available as an offshoot of space program instrument development. Thus, in 1967, development of a multichannel, broad band, microseismic system began (Blake and Leighton, 1970). Application of this system in rock-burst-prone mines showed it worked well and provided the incentive to develop methods whereby the source location of individual rock noises could be easily and directly calculated (Leighton and Blake, 1970; Leighton and Duvall, 1972; Redfern and Munson, 1982). The improved system and the ability to locate rock noises quickly showed that the microseismic technique offered new and increased poten-

Jan 8, 1983

By Dick Ruby

Most miners know that Latin America's major mineral areas are in the mountains of Mexico and down the backbone of the Andes in South America. These areas comprise some of the more rugged and challenging parts of the world's geography, and the risks of doing business in these areas are just as difficult as the impressive task of extracting and processing ores. However, Latin America does contain mineral deposits, some untouched and many to be discovered, that convince venturesome people that the tremendous effort required to mine them will be worthwhile. The rewards have often been adequate in the past. Hopefully, they will be in the future. Background The safest statement that can be made about Latin America is that the "ballgame is constantly changing." Here are some examples: Chile. Under President Frei in the 1960s, Chile welcomed foreign mining interests, even though the government was acquiring significant ownership interests in the big copper properties. Then, under Allende in the 1970s, the big mines were taken over and compensation was denied on various grounds including the allegation that extraordinary profits had been made that should have been taxed. After Allende, an about-face was made in policy; former owners of the expropriated mines received some compensation and new foreign investment was seriously welcomed. Many major companies announced intentions to return to Chile. Some have. Peru. After a military takeover in 1968, Southern Peru Copper

Jan 7, 1983

By H. O. Seigel, John C. Robbins

Luminex is a new method of prospecting for mineral deposits based on time-resolved mineral luminescence created by an ultra-violet light source. Developed by Scintrex Ltd., Luminex detects and resolves a group of key minerals - either ore minerals themselves or, more often, accessory or pathfinder minerals for certain types of economic ore deposits. These minerals are commonly found on the earth's surface, even in areas of considerable weathering. The method extends the range of mineral deposits that are remotely detectable from the air. Tungsten, tin, molybdenum, gold, and bedded lead-zinc deposits are included. Therefore, Luminex is a natural supplement to the three classical methods of airborne geophysics. The luminescence of minerals has been known and used qualitatively in mineral exploration for many years. But there are more than 500 minerals known to be at least sometimes luminescent. Luminescence of most is unpredictable and the colors they emit may vary from locale to locale. It is, perhaps, this apparent complexity of the field that has discouraged its proper scientific scale until now. There are two basic types of luminescent minerals - intrinsic and impurity activated. In the first type, luminescence is an inherent property of the mineral in its purest form. In the latter, luminescence is due to the introduction of foreign trace elements, often in very modest amounts (ppm), into the crystal lattice. These trace elements are known as activators. There are very few intrinsic luminescent minerals commonly found in nature. Chief among these are the calcium tungstatemolybdate family, more commonly known as the scheelite-powellite family, and the uranyl minerals such as autunite and saleeite. The vast majority of other known fluorescent minerals such as fluorite, hydrozincite, and many calcites, are impurity activated - that is, they will not fluoresce in purest form. In addition to the many minerals likely to luminesce at the earth's surface under ultraviolet excitation, any prospector who has ventured out at night with a mercury lamp will know that much organic matter luminesces - for example lichens and even scorpions. Just as the eye finds difficulty in resolving the luminescence of minerals from that of organic materials, it also has its limitations at sorting out minerals from one another by their luminescent colors. Figure 1 shows, in part, the photoluminescent emission spectra of scheelite, hydrozincite, and autunite. It is clear that there is a considerable similarity in spectrum between scheelite and hydrozincite and a great deal of overlap. In fact, a small amount of molybdenum in the scheelite lattice can almost bring these two spectra into coincidence. On the other hand, the autunite emission spectrum is clearly resolved from the other two. Basis of the Method The right-hand side of Fig. 1 shows the time waveforms of decay of the photoluminescence of the same three minerals. It is apparent that the lifetimes of photoluminescence of scheelite and hydrozincite are radically different and that these two minerals, therefore, may be readily resolved through their emission lifetime characteristics. It is in the realm of time-resolved measurements (lifetime characteristics) that Scintrex has made its major advance in the Luminex method. With the exception of some work by Exxon confined to uranyl minerals, to the best of our knowledge, no systematic scientific investigation has been carried out in the field of time-resolved mineral luminescence studies other than the work of Scintrex. Scintrex's findings are that all organic materials and most commonly activated luminescent minerals have lifetimes shorter than one microsecond. In addition, only a relatively small number of minerals - among them those called key minerals, or certain ore and pathfinder minerals - have lifetimes greater than one micro-second. Scintrex is able to characterize these minerals primarily by their emission lifetimes and secondarily by their emission spectral characteristics. By a combination of these factors a mineral index is arrived at. From that, photoluminescent minerals can be resolved from one another with a high degree of probability. At least two spectral channels and two time channels - of which one can be common - are required to apply this mineral index. Ground System A portable hand-held Luminex analyzer based on a modulated mercury lamp has been used to date in Canada, the US, and Australia. The current production model of this device is the LG-2. It has two spectral channels and two time channels for each spectral channel. Figure 2 shows a ground Luminex traverse over the Texas-Arizona zinc prospect in Arizona. The instrument was set so the channel read was hydrozincite-specific insofar as possible. The mineralization in this prospect is known to be hydrozincite and other zinc secondary minerals in limestone. Figure 3 shows a ground Luminex traverse over the AAA uranium prospect in Nevada. The instrument was set to optimize the uranyl response. For comparative purposes, broadband scintillation counter readings were made on the same stations (also shown in Fig. 3). It is apparent that both the Luminex and the scintillation counter results reflect a near-surface distribution of uranyl minerals. It is interesting that no visible uranyl secondary minerals

Jan 7, 1983

By Andrew B. Allen, Charles W. Robinson, Robert L. Schneider

In April, the US Synthetic Fuels Corp. broke a three-year silence and made its first financial award by approving a $820,750 loan for the First Colony peat-to-methanol project in North Carolina (ME, May, page 403). Peat Methanol Associates (PMA), a partnership between Koppers Co., ETCO Methanol Inc., Transco, Peat Methanol Co., and l. B. Sunderland, broke ground at First Colony last year and plans to begin production in Dec. 1985. Although the award is only a small part of Synthetic Fuels Corp.'s $15-billion budget, it does signal the corporation's intention to move aggressively ahead. It also is a positive indication that First Colony will be completed and operated successfully. This article describes the methods and equipment that will be used to harvest peat at First Colony, as well as how the peat will be converted to methanol. Introduction Peat deposits found along North Carolina's coastal plain contain high-quality fuel-grade peat with an average heating value of more than 23.3 MJ/kg (10,000 Btu/lb) (dry), with a low sulfur and ash content. The deposits differ from other US peats in that they contain large, sound Atlantic White Cedar and Cypress logs, stumps, and roots that may extend throughout the full depth of the deposit. A second difference is that these deposits are much more highly decomposed and, in the raw state, have the appearance and feel of a heavy, reddish-brown grease. These factors make it impractical to use standard production equipment so a new line was developed. Also, because of these conditions, techniques were modified to facilitate production. First Colony Farms, located near Creswell, NC, developed and evaluated a milled peat program. Equipment for this production method was designed and built, production rates were established from field operations, drying rates were established, weather data were analyzed, and total operating and capital costs were estimated. The method depends on the sun and wind for drying peat to the desired moisture content, in this case around 40%. Therefore, field preparation is actually the construction of a large solar collector to dry the peat so it can be harvested and stockpiled. It is essential that this collector be properly profiled initially and maintained during production to prevent precipitation from ponding. Initial Field Preparation Initial field preparation includes cleaning existing canals and constructing ditches and water control structures for proper drainage of rainwater run-off, building adequate roads for site access, removing surface vegetation, and profiling and sloping the fields. At First Colony, the 60.7-km2 (15,000-acre) harvesting area was divided into 129.5-hm2 (320-acre) blocks about 1.6 km (1 mile) long and 805 m (0.5 mile) wide. This was accomplished by cleaning main outfall canals with adjacent roads built from canal spoil at 1.6-km (1-mile) intervals. Existing intermediate canals that feed into main outfall canals at 805-m (0.5-mile) intervals also are cleaned. Headland roads are constructed from canal spoil along each side of each intermediate canal. This 129.5-hm2 (320-acre) block is then divided into 32 harvest strips by small V-ditches constructed at 50-m (165-ft) intervals. At the end of the field with the lowest elevation, corrugated steel pipe culverts are installed under the headland road in each V-ditch to control rainwater runoff into intermediate canals. Runoff water from the fields is diverted to a holding pond to prevent any increase in peak water runoff rates and to allow for more uniform drainage rate than experienced to date. After the drainage system is installed, harvest strips are ready for grinding and sloping operations. Surface vegetation, made up of small, waxy-leafed shrubs such as Gallberry, Bayberry, Magnolia, and scattered pond pine, can be effectively ground and incorporated into the upper surface of the peat layer. Here, it will rapidly decompose and have little effect on overall peat quality, thus eliminating the standard practice of pushing the vegetation and upper wood layer into long windrows with bulldozers and hauling this debris from the fields. Incorporating vegetation into the upper surface is known as the initial 102-mm (4-in.) surface vegetation grind and is accomplished by using a modified Bros Rota Mixer. Following this operation, and by using the same unit, a sec¬ond grind with a depth of 200-255 mm (8-10 in.) is made. This reduces the debris to a finer consistency, mixes it with the upper peat layer, and grinds any wood found in the upper 200-255 mm (8-10 in.). After initial grinding operations are completed, the augering or sloping operations can be accomplished with little or no hin-

Jan 7, 1983

By Tony S. Calayag

Throughout the mining industry today, new bearing materials - ZA* high-performance zinc-aluminum alloys - are reducing costs of maintaining and rebuilding a wide range of equipment. As replacements for bronze bearings, installed in original equipment at the plant or during maintenance and repair operations in the field, the zinc alloys frequently provide better or equal performance at lower cost. The ZA Alloys The ZA alloys are a family of three high-performance zinc-aluminum alloys that compete in cost and performance with cast iron aluminum and bronze. The growing number and uses testifies to the versatility of these alloys and is encouraging their consideration in a wider range of applications. The ZA alloys are referred to as ZA-8, ZA-12, and ZA-27, the numbers corresponding approximately to the percentage of aluminum each alloy contains. ZA-8 is a permanent-mold casting alloy and is usually selected for decorative purposes; ZA-12 provides both performance and cosmetic benefits; ZA-27 offers the greatest functional strength. The term high performance ZA alloys distinguishes them and their improved engineering properties from traditional zinc die casting alloys. Maintenance Savings At its mine in Timmins, Ontario, Kidd Creek Mines Ltd. operates over 40 Joy VCR- 150 crawler-mounted air-powered rock drills. Most of the drill components undergo severe stress as the drill batters through the under-ground rock. As the components wear, the drill bits wobble; when the wobble becomes excessive, the drills are rebuilt. In the gear train, which rotates the drill steel, there are three planetary gears with - historically - bronze bushings. Since the planetary gear bushings are wear items, they are routinely replaced during overhaul. The bronze planetary gear bushings (three bushings per assembly) were replaced up to five times annually. With 43 drills in use, bushing consumption approached 600 per year. At the manufacturer's replacement part cost, the 600 bushings and gears would cost more than $20,000 a year. Even though a major saving was achieved by having the bronze bushings manufactured locally, the 600-unit annual usage provided ample incentive to investigate other ways of lengthening drill life and reducing the part costs. One approach was to consider using a bushing material that offered good bearing properties, but was lower in cost. About three years ago, ZA-12 zinc-aluminum casting alloy, costing less than half as much as bronze, was evaluated and selected for testing. One hundred ZA bushings were manufactured and placed in service as the drills came in for rebuilding. At the next rebuild the "drill doctor" (drill maintenance mechanic) noticed that, although the bronze bushings were completely destroyed, on occasion the zinc alloy bushings were not. In addition, he noted that some of the ZA bushings showed less wear than the bronze bushings. Because the bushings were changed routinely during each overhaul, the actual operating life of each bushing was not determinable. Therefore, it was not possible to statistically compare the life of the ZA bushing against the bronze. However, the desired life of the part was from overhaul to overhaul. So the ZA alloy obviously met the objective, giving equal or better life than bronze at a significantly lower price. Based on the favorable results of the testing under actual operating conditions, Kidd Creek maintenance personnel decided to switch permanently to the ZA bushings for rebuilding the VCR-150 rock drills. Original Equipment Application As one of the leading companies marketing the ZA alloys, as well as a zinc -copper-silver mining company, Kidd Creek is interested in developing applications for the alloys by original equipment manufacturers such as joy Manufacturing. Kidd Creek marketing representatives provided joy with information on the Timmins mine tests, along with ZA-12 bushings for evaluation and testing. Based on this information, joy installed ZA bushings in 12 new VCR-150 units and delivered them to customers for use in such areas as granite quarries and copper, lead, zinc, and limestone mines. During the following year, joy engineers closely monitored repair reports to verify the performance of the ZA part. The engineers' findings convinced them of the advantages of ZA-12. As a result, joy now uses ZA-12 bushings in the manufacture of its VCR-150 air tools. Advantages for Casters and Users In the foundry, the new alloys have proved their castability and profit potential in sand and metal permanent-mold processes, as well as the new graphite permanent-mold gravity casting process. The energysaving, pollution-free and ease-of-machining benefits they offer are important to all of these processes. Most recently, the high-performance alloys entered the arena of cold-chamber die casting, where they provide properties beyond those of

Jan 7, 1983

By R. W. Carn, D. Vincent

Environmental Considerations With significant increases in bulk coal movements through terminals, operators are under constant social and political pressure to reduce or remove environmental pollution problems incidental to their operations. To meet these requirements, both equipment manufacturers and terminal designers are endeavoring to design equipment and systems with stringent environmental controls. The most challenging environmental problems facing coal terminal designers and developers are terminal siting restrictions, dust control, and noise abatement. Terminal Siting Finding a suitable site can be a difficult problem because of public concern over coal dust or the impact of a terminal on the surrounding community or natural habitat of the area. Often the only suitable flat land available for terminal development is on a tidal estuary or salt water marsh with great environmental value. In many cases a period of four to six years of full environmental and social assessment has been needed. A recent example of such difficulties is the expansion at Roberts Bank, British Columbia, where environmental impact assessment studies and their public review took almost six years from initial expansion applications until the time of approval. Dust Control Modern coal terminal dust control techniques usually consist of water sprays at strategic locations to suppress dust. The application points include rail car or barge dumper, main conveyor transfers, perimeter sprays around stockpiles, stacker/reclaimer, ship-loader transfers, and loading spout. The water sprays may include a chemical wetting agent or surfactant to reduce the water requirement and increase effectiveness. Recently there have been advances with development of effective micro foam agglomerating agents. In these systems, a micro foam with very small bubble sizes is sprayed into the coal stream. The foam fills the interstices between coal particles and wets the coal fines. These systems have proven to be very effective and usually one application before stockpiling and one upon reclaiming will markedly reduce the coal dusting. Stockpile perimeter sprays can be operated either manually or at the sophisticated terminal, actuated by a computerized control system that senses key environmental conditions such as humidity, precipitation, and wind velocity. Most modern terminals collect the drainage from the stockpile area, remove the solids in settling basins, then recirculate the water to reduce water requirements and effluents from the site. Dusting of long-term storage stockpiles can be reduced by spraying the piles with chemical resin or latex binding compounds to seal the surface. These compounds also can minimize erosion of the pile by rainfall. Dust collection with air evacuation systems and cyclone or wet scrubbers can be used at key areas such as rail car dumpers, main conveyor transfers, and ship-loader spouts. The trend in dust control is away from dust collection since most dust collectors are high maintenance items requiring good operator supervision and servicing. Coal handling conveyors are usually open and uncovered. However, in areas requiring special attention they may be covered or even completely enclosed. Dust generation from terminal roads is often a significant amount of the total dust emitted from a terminal. To reduce this dusting, roadways where traffic is heavy can be paved or sprayed by water trucks. Speed limits can be enforced and use of tracked mobile equipment for stockpile handling rather than rubber-tired loaders is encouraged by authorities. Noise Abatement Terminals located close to residential areas are often faced with noise control problems. Noise can be one of the most difficult environmental problems to solve. Usually, use of electrically-powered equipment is encouraged to reduce noise levels. Rail car dumper houses can be totally enclosed to reduce both dust and noise emissions. Diesel locomotives can be fitted with special muffling devices. Green belts of trees surrounding a terminal or the ap-

Jan 7, 1983

By Sabina Brady

Nearly a decade and a half after the US and China established formal diplomatic relations, and two decades after the two countries signed the Shanghai Communique and established commercial ties, the world, and perhaps China itself, has discovered that a wealth of natural mineral and energy resources lie beneath China's soil and directly off its coast. The country's coal reserves and oil and gas potential are well known. Its ferrous and nonferrous metal reserves are respectable and in a number of instances pre-eminent. According to 1981 Minerals Yearbook estimates - more often than not below those now being claimed by China - the country's aluminous metal reserves are about 907 Mt (1 billion st); iron ore reserves are 40 Gt (44 billion st); and copper reserves are about 46 Mt (54.4 million st) of contained metal. In addition, the country has about 10.7 Gt (11.8 billion st) of phosphate reserves, the fourth largest in the world, and 3 Gt (3.3 billion st) of pyrite. China's national Sixth Five Year Plan promulgated in late 1982 ended a stringent three-year retrenchment or readjustment period in which a number of major development projects involving foreign participation initiated in the late 1970s were shelved. The new Five Year Plan is a signal both within and outside of China that things are now moving again, and that major industrial and service sectors are receiving the kind of funding and flexibility they need for expansion, construction and modernization. The new plan's strategy for growth is measured and much less grandiose and frenetic than it was five years ago when China flung open its doors to foreign companies and invited participation in large-scale development projects. Now, the country's reticence to spend foreign exchange to purchase key equipment, technology, and services -a reaction to these projects and the spending they entailed - is clearly on the wane. In China's effort to quadruple its GNP by the year 2000, there is a new willingness to use some of its substantial foreign reserves. In fact, it is projected that 1983 will witness a $1.9 billion deficit, with a $2-3 billion deficit in 1984 and 1985. The following article discusses implications the Sixth Five-Year Plan has for nonferrous metal development in China. It is the first in a series of three articles on Chinese mineral resource development to be published in Mining Engineering over the next few months. The second article will identify specific nonferrous projects underway, while the third in the series will focus on trade and development opportunities for phosphate and potash producers in China. China's Ambitious Plans In the last few months, the exploitation of China's nonferrous resources and development of its industrial processing capabilities have begun to receive increasing attention on both provincial and central levels. Unlike the earlier modernization drive of 1978 when China's ferrous sector - best typified in the Baoshan iron and steel project - got the lion's share of the Ministry of Metallurgical Industry's (MMI) energy and resources, it now appears that in some respects the nonferrous and industrial sectors are finally moving out from beneath the dominating shadow of ferrous and getting their own day in the sun. Separation of Nonferrous from Ferrous One clear demonstration of this is the establishment in April 1983 of the China Nonferrous Metals Industry Corporation (CNFMIC). The corporation is composed of 819 enterprises with over a million workers, and also includes 12 nonferrous metal construction companies, eight design institutes, and three prospecting companies. Of ministerial rank, CNFMIC is responsible for the development of both the country's nonferrous resources and its processing facilities. Although closely tied to the parent ministry from which it sprang (i.e. MMI), CNFMIC, at least theoretically, is separate and independent from it. One strong indication that this independence is, or soon will become a reality, can be seen from the fact that the new corporation is not headed by the former MMI officials, not even those who made up the ministry's now defunct nonferrous bureau. Instead, its president Qiu Chunfu is formerly of the State Economic Commission and the China International Trust and Investment Corp. Its general manager Fei Ziwen, an engineer in his early 50s, is from the Jiangxi Province Copper Corp. The new nonferrous corporation appears to be powerful

Jan 7, 1983

By Lynton B. Manssen

Introduction Net Present Value (NPV) techniques are becoming widely used in industry as a standard analytical tool in making capital budgeting decisions. However, NPV techniques are often misused in "common practice." A comparison was made between the use of NPV techniques in common practice and an Adjusted Net Present Value (ANPV) approach to capital budgeting in the financial analysis of a mining project. The comparison was made by applying both methods to a hypothetical copper project. The intent of the analysis is to provide an example for practitioners to follow when financially analyzing mining (or other) projects. To maintain the thrust of the analysis, the project has been evaluated as a stand alone, total project. No consideration has been made of the division of cash flows accruing to various owners over the life of the project. This omission will not affect the comparative nature of the analysis. This discussion assumes that the reader is familiar with present value as a concept and as a tool in capital budgeting. Finance theory has embraced NPV analysis as the correct way to evaluate capital budgeting alternatives. Many articles have been written expounding the virtues of NPV over other capital budgeting methods, such as Internal Rate of Return (IRR), Payback, Accounting Rate of Return, and others. It is not the purpose of this article to review all of the literature in this area; suffice it to say that in academic circles NPV concepts are accepted as the norm. A survey by Schall, Sundem, and Geijsbeck (1978) indicates that major US companies are finally following in academia's footsteps. Fifty-six percent of the companies responding to the survey use NPV techniques in their capital budgeting process. Further, some 86% of the companies surveyed use discounted cash flow methods (NPV or IRR) for capital budgeting decisions. This compares with a survey by Klammer (1972) that showed 57% of companies using both techniques, a considerable increase in seven years. With the increasing use of NPV techniques in industry, there are certain uses in common practice that can give misleading results. Five common errors in NPV analysis of large projects are: • No distinction is made between real and nominal cashflows. • The discount rate(s) used in the NPV analysis is not formally adjusted for risk. • There is no distinction of possible differences in the riskiness of different project cash flows; i.e., revenue vs. depreciation. • There is no recognition of the cash benefits to the project from interest tax shields (interest payments on the project's debt that are tax deductible). • There is no clear recognition of subsidies to the project from concessionary debt financing. No Distinction Between Real and Nominal Cash Flows Often, expected cash flows for a project are stated as a mixture of real (in constant dollars) and nominal (in current dollars) cash flows. For example, expected revenue cash flows may be stated in real terms and depreciation may be stated in nominal terms. If cash flows are added together to give an after tax cash flow, and this single cash stream is discounted, care must be taken to ensure that cash flows are consistently stated. All cash flows should either be stated in nominal terms or in real terms. In addition, the discount rate used must be stated in the same terms as the cash flows being discounted. Real cash flows must be discounted using real discount rates and nominal cash flows using nominal discount rates. Discount Rate Not Adjusted Numerous methods for obtaining discount rates are used in common practice. Schall and others

Jan 6, 1983

By R. W. Carn, D. Vincent

During the next 15 years, US coal production is expected to double, with the increased production evenly divided between the East and the West. Along with greater production, coal export markets should increase dramatically from East, West, and Gulf Coast ports. The annual overseas export capacity of US coal-loading terminals is expected to rise from 147.1 Mt (162.1 million st) in 1981 to a minimum of 278.1 Mt (306.6 million st) in 1985, according to the US Maritime Administration. Increased coal production and use will lead to more development of import and export terminals, a vital link in the coal transportation chain. With continually escalating capital costs and the competitive markets that the terminals will serve, a well designed and efficient terminal is necessary. This article begins a two-part series that presents concepts presently used in coal export terminal design. Part I looks at site selection factors and equipment needs, while Part II will examine environmental considerations in building a terminal as well as typical capital and operating costs. The world is nearing the end of the oil era. In a few years oil will not be available to sustain the growth rate and increasing standard of living we have known in our lifetime. The big question is what energy era are we moving into? With the decline of readily available oil reserves and rapidly increasing prices, many countries are trying to switch to alternate energy forms. While intensive efforts to find new oil reserves continue, alternate energy sources such as natural gas, coal, synthetic fuels, nuclear, hydroelectric, solar, and wind power are being developed. Recent indications are that coal is expected to bridge the energy gap over the next 25-30 years until the technology and economics of the alternate energy forms reach satisfactory levels. Use of coal for energy is receiving strong attention due to its long-term availability (200-300 years minimum), relative ease of development, and its low cost per unit of power produced. By the year 2000, it is expected that 25% of world energy supply will be met by direct coal combustion and possibly another 5-10% by synthetic fuel from coal. Coal's expanding share in the world energy market, along with an increase in coking coal requirements, will result in a large increase in the world's seaborne coal trade. Recent statistics and projections for the future are shown in Table 1. This phenomenal development rate includes increases in both coking and thermal coal requirements. Because of the rapid increase of seaborne coal trade during the last 10 years and the even greater projected increase of trade to 2000, various sectors of the coal industry are faced with enormous technical challenges and huge investments in equipment, land, transportation systems, and port facilities. Very large bulk terminals are under development throughout the world. Latest surveys indicate that there are about 30 new coal export and import terminals under consideration and at least 30 existing terminals have expansion programs planned or underway. With the high cost of borrowed capital and rapid inflation rates there is great emphasis on new planning and design techniques to minimize capital and operating costs of coal transportation systems. Terminals A total coal supply system can be considered to consist of one or more mines; a train, barge, truck, or other haulage system; an export terminal; a fleet of bulk carriers; a receiving terminal; and possibly, local inland distribution networks that include barges and railways. Terminals, though only a small link in the total transportation system, play a key role in overall system efficiency. At ports or inland distribution centers, terminals act as transportation links bringing trains, ships, barges, or trucks together for cargo transfer and temporary storage. A well-designed terminal can provide maximum independence between two modes of transportation and optimum freedom for intermodal interference. A terminal acts as a buffer between the two transportation modes by providing sufficient storage capacity so a ship need not wait for its cargo on, for example, a train-by-train basis, but can load immediately from the ready stock. Similarly, a train need not wait for a ship to unload its contents but can dump immediately into storage. A terminal also can be used to properly mix various types of coal to satisfy a buyer's requirements. Consider the relative value of various production and transport segments for a typical steam coal

Jan 6, 1983

By Andrew N. Peterson

US mine operators frequently fail to investigate more cost effective and productive bulk material handling systems because surface mines seem to lend themselves to truck ore haulage. In this country, as a result, use of conveyors to move heavy loads from mine to process facilities has been minimized, if not actually neglected. In contrast, there are more than 50 conveyorized surface mines in successful operation around the world. These mine operators have learned that properly applied conveyorized systems can offer major savings in capital and operating costs, which contribute to improved profits when combined with other proven mining technologies. Growing acceptance and application of conveyorized bulk material handling in surface mines also points up how unique each mine is and how careful planning contributes to maximum mine effectiveness. Because of these differences, mining executives and technical and operating staffs need to develop an understanding of three factors in applying conveyorized bulk material handling in surface mines: • Why each mine will benefit from the type of automation permitted by conveyorized operation, •What kind of equipment is available, and • What applications most effectively demonstrate the first two factors in action - hauling either ore or waste. The conveyorized systems considered in this presentation have production rates from 0.5-2.7 kt/h (500-3,000 stph). Worldwide, these systems have been operating since the early 1960s. Advantages of Conveyors Why do you want conveyorized bulk material handling? First, it almost always provides lower operating and maintenance costs. Second, it frequently requires lower initial capital costs and almost always requires lower capital costs over the life of the surface mine. Third, it provides comparable operating availability, and finally, it frequently gives comparable operating flexibility - depending on the mine plan. Cost avoidance can be accomplished with modern production methods. These, in turn, permit increased productivity and reduced operating costs such as those for energy, maintenance, and manpower. It has been demonstrated in European surface mines and elsewhere, that conveyor systems frequently require lower initial costs than does truck haulage. Almost always such operations require lower capital costs over the mine life. Those costs include the continual addition of haulage trucks to both accommodate the increasingly difficult haulage routes and fulfill replacement requirements when trucks wear out. Conveyor systems handling ore in numerous large crushing and port facilities, which have operated since the early 1950s, have clearly demonstrated a useful conveyor life of more than 25 years. In contrast, off-highway trucks have life spans of six to eight years. The following examples illustrate comparative capital costs to purchase conveyor systems and comparable truck haulage units. Example 1 The ore haulage route from point A to point B is level and 610m (2,000 ft) long. The material weighs 1.8 t/m3 (110 lbs per cu ft) and must be transported at a rate of 1.8 kt/h (2,000 stph). The installed capital costs to provide a properly designed conveyor that will transport the described material from point A to B is about $450,000. The capital cost to purchase three 77-t (85-st) off-highway trucks and one spare truck - which would provide equivalent capacity - would be about $1.2 million. The truck cost estimate is based on a 6 min. or 771 kt/h (850 stph) truck cycle time. Truck efficiency is estimated at 0.8. Each 77-t (85-st) truck would have an actual haulage rate of 617 kt/h (680 stph). Therefore, three trucks would be necessary to transport the designated tonnage of 1.8 kt/h (2,000 stph). A movable crushing plant would be located at point A for the conveyors and a permanent crushing plant at point B for the truck haulage system. Capital costs for these primary crushing plants were not included in the calculations for either system because the capital costs are frequently comparable. Example 2 The transport route from point A to point B is 610 m (2,000 ft) horizontally and 122 m (400 ft) vertically - on a 20% grade (Fig. 1). The material weighs 1.8 t/m3 (110 lbs per cu ft) and must be moved at a rate of 1.8 kt/h (2,000 stph).

Jan 6, 1983

Although out of the ordinary, MINING ENGINEERING is pleased to present a few photographs that typify Western US mining activity during WWII. The photographs, taken by R.G. Zellers at Colorado mining operations between 1942 and 1946, were primarily intended for equipment manufacturers. The pictures capture scenes of hardworking miners during a time when output was essential to fuel a wartime effort. In addition to providing a rare opportunity to step back 40 years and view the equipment and activity common at the time, Zellers' skill with photo composition and his ability to obtain clarity in dimly lit underground operations gives viewers an acute awareness of the dampness and dirt of the mines, and a sense for the miners' limited working space.

Jan 6, 1983

By S. P. Chong, Peter V. Avotins

The iron and steel industry continues to operate at depressed production levels due to the low level of demand for steel and foundry products. Crude steel production in the Western world dropped by 13.7% from 459.3 Gt (506 billion st) in 1981 to 396.4 Gt (437 billion st). The reduction was particularly severe in North America where the industry suffered a loss of 37.3% from 123.6 to 77.5 Gt (136 to 85 billion st). This reduced level of production severely affected iron ore and agglomerates output. Substantial curtailment was made in both sintering and pelletizing plants to meet reduced demand. The pressure on these plant operators shifted from quantity to quality. With energy cost becoming an ever increasing part of production costs, conservation was a major area of emphasis. Iron Making Sinter has continued to be the favored burden for blast furnaces overseas. As hot metal production declined and excess sintering capacity developed, many of the overseas operators that have been using pellets found it advantageous on hot metal production cost to increase the ratio of sinter at the expense of pellets. This was the case despite the depressed price level of pellets in the world market. In North America where pellets have been the predominant burden material-mainly because it is necessary to pelletize the fine grain iron ores available domestically-there was also increased interest in sinter usage. Bethlehem Steel Corporation's 13.6-m (44.5-ft) furnace at Sparrows Point experimented with a burden with more than 70% of sinter during the second half of the year and indicated some favorable results as compared to its previous 50% super flux sinter and 50% acid pellet burden. The blast furnace operators continued to press for improved burden quality. In addition to the emphasis on the importance of burden chemistry and quality, uniformity, much emphasis was placed on improving reducibilitiy and high temperature metallurgical qualities. These burden properties were recognized to hold further promise in reducing fuels rates. Sintering With reduced consumption caused by the cutback in hot metal production, many sinter plants sat idle while others operated at greatly reduced rates. The deemphasis on production in many plants allowed them to experiment with various means to reduce operating costs. The most notable action was the introduction of low cost South American pellet feed fines into the sinter ore mix. These feed fines, which are finer than 150 µm (100 mesh) ore, were previously thought to be too fine for sintering. However, when the full production rate is not required the use of up to 40% in the ore mix was reported to be successful with the aid of burnt lime and adequate premixing and granulation of the sinter mix before sintering. The emphasis on quality and tighter cost control also has resulted in a further breakthrough in sintering technology. It was recognized that good feed preparation-including selection of compatible ores, good blending, good pseudo-particle formation, additive size control increased bed depth, and closed control of the sintering bed heat pattern-could allow the production of high quality sinters with much lower heat input and FeO level. Bed depth of more than 600 mm (23.6 in.) was practiced in a number of operations. Total heat input of better than 1.3 GJ/t (290,300 kcal per st) has been achieved. Kawasaki Steel's Chiba Works has also achieved a 5.3% SiO2 in the sinter with good quality. The low heat input approach allowed production

Jan 5, 1983

By Clement K. Chase, J. A. Eisele, Paul D. Chamberlain, Terry Laverty, Lee Rice, Larry Sevenker, Albert G. Law, Daryl Tweeton, John Peters

"Name your poison," wrote Forbes, Jan. 3, 1983, in an article describing the plight of much of the mineral industry as it entered the new year. "To ask which (mining) segment is better these days is almost like asking which of several stones would make a better life preserver." "The scene has seldom seemed darker or apparently less promising," said the Mining Journal in June 1982. And the Northern Miner described the year as the third in a "3-year drought which has completely dried up (company) coffers." Thus, 1982 became the worst year for much of the mining industry since the Great Depression. Low prices, commodity surpluses, output reductions, layoffs, temporary and permanent closures, and financial losses made headlines as the general recession continued to hurl blows at an industry facing strong foreign competition, increased government regulations, and plummeting market demand. At fault were tight US monetary policies and the resulting high interest rates that, while forcing inflation to slow, also threw the economic wheels of the country into reverse gear. Automobile production, housing starts, consumer durable sales, and capital spending all fell dramatically. US industrial production fell about 8.5% in 1982, with the GNP dropping by 1.7%. Production Value Not a single mineral escaped this recession. According to the US Bureau of Mines, US nonfuel production value dropped for all but four out of 21 metals and 14 out of 44 nonmetals. Production quantities increased for only gold, lead, and zirconium among metals and for only six nonmetals. Total nonfuel mineral production value dropped a whopping 21% from 1981 levels, the largest decline since 1938 and the first since 1971. Production value was estimated at $20 billion. Metal commodities showed heavier losses than nonmetals-37% vs. 12%-because of their link to depressed automobile and construction industries. Prices From peaks in early 1980, prices of precious and base metals, ferrous and nonferrous metals, and virtually every mineral dropped to 30-month lows in June 1982. Gold dropped to $9.64/g ($300/oz) compared to a high of $27/g ($850/ oz). Silver was quoted below 164/g ($5/oz) versus a $1.61/g ($50/oz) high. Copper was offered at a five-year low of $1.22/kg (55.5¢/lb) compared with a high of $3.30/kg ($1.50/lb). Lead went for 53¢/kg (24¢/lb) versus $1.21 (554). Nickel begged for buyers at $4.19/kg ($1.90/lb) compared to a high price of $7.72/kg ($3.50/lb). Molybdenum was available at or below $8.82/kg ($4/lb), down from a high of $44/kg ($20/lb). Cobalt went for $11/kg ($5/lb) versus $55/kg ($25/lb). Adjusted for inflation, increased currency costs, and currency devaluation, many of these prices are the lowest reached in decades. Financial Profits & Losses Low prices severely impacted companies' earnings, turning profits into sometimes disastrous or fatal losses. Robert Norton, director of the US Bureau of Mines, noting there has been a recession in the mineral industry for years, said, "Profit rates as related to invested capital have been considerably lower (for mining) than those of other industries. Mineral industry profits have been subject to greater cyclical swings and debt equity ratios have been significantly greater than

Jan 5, 1983

By S. K. Kawatra

Three International Symposiums-the 14th International Minerals Processing Congress, the 17th APCOM, and the SME-AIME Fall Meeting special symposium on Design and Installation of Com¬minution Circuits-held in 1982 contained a number of papers relating to the fundamentals of processing coals and metallic minerals. In addition, many papers were published elsewhere in the literature. Some of the more significant papers are discussed below. Flavel reviewed key performance parameters, such as energy-size relationships for crushing processes and presented a fundamental basis for optimizing crusher productivity and possibly for development of improved crushers. Pascoe et al. reviewed the use of such control schemes. Magerowski and Karra presented a paper on a computer program developed to and in the design of crushing circuits. The problems associated with the scale-up to very large ball mills were discussed by Arbiter and Harris, and by Kavetsky and Whiten. Both groups concluded that limits on mill productivity arise due to problems associated with particle breakage and transport through mills. Austin et al., and Herbst and Rajamini reviewed the state of the art for the use of grinding circuit simulators for design and control. The effects of mill operating and design parameters on selection and breakage were discussed in detail. The philosophy of control and instrumentation for grinding circuits was extensively discussed by Kawatra and Seitz. Their paper presented for the first time an analytical basis for the inferential particle sizing technique and provided a fundamental basis for the implementation of this technique. The effect of reagent addition variation's on the performance of coal flotation circuits was reported by Kawatra and Waters, and on sulfide flotation circuits by Klimpel et al. Both groups analyzed circuit behavior from a kinetic point of view and reached similar conclusions on the effects of collectors and frothers. The computer simulation of an iron ore flotation circuit also was reported by Kawatra et al. In this work particular attention was paid to the phenomena of froth overloading. Klimpel et al., Kawatra and Waters, and Niemi et al. discussed the philosophy of control by flotation circuits from a fundamental kinetic point of view. An extension of the use of high intensity magnetic separators to the beneficiation of specular hematite was discussed by Thayer and Linkson.

Jan 5, 1983

The administration came on as a strong supporter of the mining industry in April of 1982 when President Reagan delivered his long-awaited minerals policy statement. He promised to reduce America's minerals vulnerability, and called for spending billions on meeting stockpile goals for strategic minerals, opening up federal lands for mineral exploration, elimination of barriers to deep sea mining, and regulatory relief. He defended the favorable tax incentives in the Economic Recovery Act as a stimulus to private research and development that would ensure the availability of materials essential to the nation's economy and national defense. But the administration just didn't seem to get anywhere. Congress, environmentalists, and even foreign governments fought White House-proposed legislation on all fronts, delivering the ultimate coup in forcing Environmental Protection Agency Administrator Anne Burford's resignation and the subsequent EPA staff house cleaning in early 1983. Anti-Reaganites scored victory after victory against Reagan's efforts to stimulate the minerals industry. Congress was stalemated on so many mining-related issues that not much was done either for or against the industry. And the US was not to get its way on the issue of sea mining either. Most of Reagan's mineral policy objectives failed to be met. Three months after the National Materials and Minerals Program Plan was presented and the Cabinet Council on Natural Resources and the Environment was made its coordinator, the head of the Cabinet Council James Watt blamed lack of progress in reviving the mining industry and creating a better strategic stockpile on the weak economy and the House of Representatives, which repeatedly thwarted efforts to open wilderness lands to mining. Congress The 97th Congress spent much of its time saying no in 1982-to the Reagan administration's deep cuts in energy and environment programs, to major changes in clean air and water laws, to oil and gas leasing in wilderness, and to killing the Department of Energy. Most of 1982 (and 1981) was spent in heated budget disputes. Some things that did not happen: • The administration and industry failed to get changes in controls of hazardous air pollutants and sulfur dioxide emissions that are implicated in the phenomenon known as acid rain. Industry had wanted to relax requirements for new industries building in clean air regions where the air act demands prevention of significant deterioration (PSD) of air quality, and to relax requirements tightening up the regulation of emissions of hazardous air pollutants. The air battle is expected to continue on five major fronts-acid rain, hazardous air pollutants, PSD, automobile pollution, and nonattainment. • Regulatory reform legislation to overhaul the way government carries out the law died a slow death last year. Business groups and the administration said federal agencies should be required to consider cost-effective measures of reaching regulatory objectives of protecting public health, safety, and the environment. Opponents, including environmentalists, feared such action would delay, weaken, or scuttle important regulations. • Congress turned thumbs down several times on proposals for oil and gas leasing in wilderness but could not agree on any new wilderness recommendations (see The Wilderness Battle). • Congress refused to open the door to the Reagan administration's plan to raise up to $4 billion a year from sales of federal lands. The administration identified surplus and excess federal lands, mostly obsolete buildings or isolated tracts of land, that could be sold by the General Services Administration (GSA) to help out the federal budget deficit. Congress took no action. Some things that did happen: • Congress extended the Defense Production Act (DPA) for six months through March 1983 without changing the 32-year-old law. That came after it failed to resolve sharp differences over proposals for critical minerals programs. Differences concerned both the amount of funds and the scope of programs that would be authorized under the DPA's Title III. Some proponents pressed for $5 billion in funding for loan guarantees or purchase commitments to spur domestic production of minerals such as cobalt. Other members of Congress wanted smaller amounts of funding, and the Reagan administration, until about November, had opposed any use of federal funds for strategic mineral programs. These measures were certain to come up again before the DPA extension expired in March. • House supporters of the Critical Materials Act of 1982 were unable to come up with the twothirds majority needed to pass the bill, so it died on the House floor in December. The bill proposed that a council be established with responsibility for coordinating federal materials research and development. The administration opposed the council creation contending that the Cabinet Council

Jan 5, 1983

By Donald E. Ralston, A. T. Yu, Richard P. Killmeyer, Peter Phillips, R. W. Vander Laan, John N. Murphy, John R. Messineo, John Peters

Overview Coal production in the first half of 1982 remained near the high levels begun in mid-1981. Production then fell sharply during the latter part of the year due to recession-weakened demand. Even so, 1982 coal production was estimated at 756 Mt (833.4 million st), a record high that exceeded 1980's previous production record of 752.7 Mt (829.7 million st). Though 1982 coal production was substantially below industry expectations, the attained production represented a modest achievement in view of the recession's severity. In 1982, the gross national product declined 1.8%, its worst performance in 36 years. The recession, along with mild weather, improved energy efficiency, and conservation efforts caused the nation's energy use to drop 4.1%. With the iron and steel, construction, and auto industries experiencing production declines, industrial energy use fell 10.8%. The extent to which the nation's economic slump affected coal markets in 1982 varied: • total domestic coal use declined 3.4%; • exports remained strong for most of the year; • electric utility coal use declined for the first time in 25 years; • coal use at coke plants declined by one-third; and • coal use in other industrial sectors stayed surprisingly near the 1981 level. Coal Use Domestic coal use totaled 641.8 Mt (707.5 million st) in 1982,22 .9 Mt (25.2 million st) below the 1981 level. Nearly all the decline occurred at coke plants where use dropped to 37.1 Mt (40.9 million st) in 1982 from 55.3 Mt (61 million st) in 1981. The decline in all other industrial and electric utility coal markets was only 5.3 Mt (5.8 million st). Residential and commercial coal use increased 635 kt (700,000 st) to 7.3 Mt (8.1 million st) from 6.7 Mt (7.4 million st). Power generation decreased 2.3% in 1982, the first year since 1945 that output failed to increase. The decline was due to a drop in industrial demand. Electricity sales to residential, commercial, and other nonindustrial users increased slightly. But coal's competitive position stayed strong. Power generation from oil and natural gas fell 28.9% and 11.7%, respectively. Power generation from coal declined only 0.9%. Among the primary energy sources, coal fueled 53.2% of US electric power generated in 1982, compared with 52.4% in 1981. In 1982, US steel production declined to 66.1 Mt (72.9 million st), the lowest level in 50 years and down from 109.6 Mt (120.8 million st) in 1981. The reduced steel demand forced 13 coke plants to shut down. Coal Exports Coal exports in 1982 totaled 96.4 Mt (106.3 million st), 5.7 Mt (6.3 million st) less than in 1981. Despite the worldwide recession and above normal coal stockpiles in many countries, exports were higher than many expected. This showed the relatively strong US position in international coal trade. The US continued to export near-record coal tonnages despite increasingly competitive influences. These included an improvement in Australia's labor difficulties, the return of Polish coal to Western European markets, and lower oil prices. In 1982, US port facilities were improved and expanded, and more efficient methods for scheduling foreign vessels were implemented. As a result, high volume coal shipments to US ports were routinely loaded and dispatched unhampered by bottlenecks that plagued East Coast ports in 1981. Appalachian coalfield production declined 1.4% from 1981 output and 3.9% from 1980 output. The interior region of the US showed an increase of 7.8% in production. This was primarily because of a

Jan 5, 1983

The value of US industrial mineral output last year was $20 billion, a 12% decline from 1981. A glance at the accompanying table and a review of the comments made by several contributors reveals how poorly many industrial minerals fared during 1982. Bromine and peat posted a 6% increase in production while recovered sulfur showed only a 3% gain over 1981. Pumice, salt, and dimension stone managed to stay more or less even with 1981 production. However, most industrial minerals posted losses for the year from 3% for vermiculite, sodium carbonate, and gypsum to 49% for ilmenite. Naturally, the depressed economy is to blame for decreased production and consumption. Low steel and auto production, lower housing starts, and many other factors impacted the industrial mineral industries. Hopefully the worst is over. Interest rates are down, energy costs are decreasing, the automobile and housing industries show signs of picking up. Perhaps the 1983 annual review will be less gloomy. Many thanks to these industrial minerals technical committee members for their contribution to this year's annual review: G. S. Austin, E. S. Montgomery, H. P. Ehrlinger III, D. B. Jorgensen, R. L. Parratt, J. F. Burst, W. Mallory, N. C. Trivedi, and N. K. Olson.

Jan 5, 1983

The only good news in the exploration sector in 1982-a year plagued by low metal prices and weak demand-was precious metals. Gold in particular remained in the forefront, as it has for at least the past three years. The reason for this is partially due to gold's seeming resilience to conventional supply side factors-such as new production-that normally influence many other metals. Also, with projected production costs of about $6.40-$9.65/g ($200¬$300/oz), modest deposits with average grades can offer an early return on capital investment and good profit potential. Keeping escalating capital costs for new mining ventures within reason has shifted gold exploration efforts in recent years. Many mining companies are seeking relatively low grade, modest tonnage, near-surface gold mineralization. This, of course, leads to lower development costs using open-pit mining methods. Recent refinements in the carbon-in-pulp recovery process also has enhanced the economics of such deposits. Slumping economic conditions certainly played a key role in shaping exploration activity last year. Nearly every major mineral-producing state recorded exploration slowdowns. In Alaska, for example, development expenditures approached the level of exploration spending for the first time in the state's history. This not only reflects major companies' decisions to move toward production but also the economic slowdown. The worldwide recession stopped Nevada's exploration and mining boom "dead in its tracks," said John Schilling, state geologist. The year was one of layoffs and closings for the state's mines and exploration offices, he reported. Similar trends were noted in most other states, especially in the West and Southwest. In the Pacific Northwest, however, exploration appeared to continue at a relatively good pace considering the metals market. In the mining geophysical community, recent advances in telecommunications and microprocessor technology are continuing to provide a positive impact. Many geophysicists have begun using satellite digital communication links to access computer systems from remote sites where using a microcomputer would be difficult. There were also major contributions made in exploration geochemistry last year. Highlights include progress in formulating mineral deposit models, geochemical exploration in glaciated and arid environments, and publication of many informative books. The following state-by-state summary and articles on geophysics and geochemistry provides a detailed view of exploration events throughout the US in 1982.

Jan 5, 1983

By Michael Chender

The rapid and continuing expansion of computer and communication capability is giving birth to profound changes in the business environment. Some commentators hold that the basis of the world economy has already shifted from industry to information. Regardless of the overall implications of these changes, it is now clear that every company potentially has both access to and a need for much more information for decision making than was the case a few years ago. The importance of information to the mining industry has been underlined by the rash of unexpected economic and political developments and by the accompanying market volatility that have marked the past decade. It should be abundantly clear to even the smallest mine operator that the price for his output can be instantly affected by unexpected developments halfway across the world. Nevertheless, many mining companies still are much less sophisticated about information than they might be. For many, the historical feeling that information is an unnecessary luxury for a production-oriented business still seems to linger. On the other hand, the overwhelming volume of source material, uncertainty as to its accuracy, and the problems of finding relevant material when needed, presents stumbling blocks to viable systems of information management. Introduction When a company needs certain information, it has two basic alternatives. It can either research and develop the information in-house or pay for someone else to do it. Few mining companies have the in-house capability to assemble information needed for careful planning. On the other hand, companies often engage consultants to find information that is in fact easily accessible. All too often companies give up on procuring needed information because of the frustration of not being able to find it, and of not wanting to pay seemingly exorbitant sums for someone else to produce it. The result is poor planning. This article addresses two aspects of the information problem-finding the right sources and then accessing the particular information desired, especially as it pertains to nonferrous metal exploration and development issues. In the first section, major English-language sources that report on exploration and development (excluding primary sources of geological information, such as technical journals) are discussed.* In the second section, some available techniques for efficiently accessing this information are presented, focusing on the new MINESEARCH database system. Part One: The Information Following the News The most obvious way to follow exploration and mining developments from a distance is through regular mining media. Many active mining districts have local newspapers, usually published in the district's major towns, that give extensive coverage to miningrelated activities. For instance, to follow activities in Idaho's Coeur d'Alene silver district, one might subscribe to the Kellogg Wardner News and/or the Wallace Miner. Similarly, one might get the Sacramento Bee for news of current mining developments in north-central California. The American Metal Market, published in New York, is the daily newspaper that covers the metals industry as a whole, both in the US and abroad. Its coverage is weighted towards the refining, manufacturing, and consumption end of the business, but it frequently carries stories on mining activity, company dealings, and market outlooks. For news of major mining companies, the daily Wall Street Journal provides occasional coverage of North American companies, while the Financial Times of London serves as probably the best single source for worldwide company information. International Coverage There are three metals industry weeklies that have broad international coverage and readership. These are Metal Week, Metal Bulletin, and Mining Journal. Each has its strengths. Metals Week, a McGraw-Hill newsletter, focuses primarily on news of the metals markets, concentrating on those developments that are seen to most directly affect the price of nonferrous metals. Metals Week is strongest on North American news. Metal Bulletin, published in London, is particularly strong on

Jan 4, 1983