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By Craig E. Saporito

INTRODUCTION Freeport-McMoRan Inc. has been very active recently with two major discoveries and its restructuring activities. This paper describes Freeport-McMoRan's businesses, the two major mineral discoveries, and exciting opportunities within the oil and gas operations. BUSINESS ACTIVITIES Freeport-McMoRan is the largest and one of the lowest cost fully integrated U.S. phosphate fertilizer producers. It is the second largest domestic Frasch sulphur producer. Freeport- McMoRan will become the largest domestic producer of Frasch sulphur when its Main Pass Block 299 sulphur deposit reaches full production in 1993. Furthermore, it is the largest transporter of sulphur produced by others. Its oil and gas activities rank among the largest U.S. independents in terms of production and proved reserves. The copper/gold operations in Indonesia are among the world's lowest cost. When expansion operations reach full capacity levels in 1992, the Indonesian copper/gold complex will be the fifth largest copper operation in the world. Operations are divided into three business segments that include: 1. Agricultural minerals, incorporating sulphur, phosphate rock and phosphate fertilizer activities; 2. Energy, including oil and gas activities; and 3. Metals, incorporating copper, gold and silver operations in Indonesia. In early 1989, Freeport-McMoRan announced the discovery of two world-class ore bodies; a sulphur deposit off the coast of Louisiana on Main Pass Block 299, and a copper/gold deposit -- the Grasberg in Indonesia -- approximately two miles away from the existing Ertsberg East operations. As a result of these major discoveries, Freeport- McMoRan decided to carry out a restructuring program. Its purpose was to sell $1.2 to $1.5 billion of non-strategic assets. Debt levels and associated interest expenses will be significantly reduced, and general and administrative expenses will be reduced, which will place Freeport- McMoRan in an excellent position to fund the development of the Main Pass Block 299 sulphur discovery, the Grasberg discovery, and oil and gas discoveries. This restructuring program also will allow Freeport-McMoRan to achieve the greatest future value for shareholders by focusing on its principal businesses (Figure 1). Strategic Restructuring • Sell $1.2 - $1.5 Billion Of Non-Strategic Assets • Significantly Reduce Debt • Significantly Reduce G&A • Fund Development Of Main Pass & Grasberg • Stronger Company; Positioned For Future Growth • Focus Is On Principal Businesses: - Sulphur/Phosphate Fertilizers - Indonesian Copper/Gold - Oil And Natural Gas Figure 1 - Strategic Restructuring AGRICULTURAL MINERALS Main Pass Block 299 Discovery The Main Pass Block 299 discovery has a proven reserve of 67 million long tons of recoverable sulphur. This is the largest known Frasch sulphur deposit in North America. The discovery increased Freeport-McMoRan's sulphur reserves more than five-fold, and is synergistic with the company's phosphate fertilizer assets. The

Jan 1, 1990

By R. B. Stein

"Countercurrent decantation circuits(CCD) are often employed in hydrometallurgy to effect solids-liquid separation in combination with a barren solution wash to reduce losses of valuable solution component(s) from the tails. Bechtel Corporation uses its BEMSIM flowsheet-modelling PC computer program to simulate a CCD circuit where the ""dirty"" wash solution contains significant amounts of soluble components. An algorithm successfully models this condition and is simplified to a single expression when the wash solution is a ""clean"" solution containing no solubles. The CCD calculation module is compared to operating data from uranium and nickel-cobalt CCD circuits.IntroductionHydrometallurgical process schemes have often relied on countercurrent washing methods to reduce soluble losses of valuable product in the tails. Commonly used equipment to effect this operation is a CCD circuit of N thickeners in series, where a slurry is fed to thickener I and a wash solution to thickener N; clear pregnant solution overflows thickener I and washed tails exit as underflow from thickener N. CCD circuits of this type are typically employed when the solids tend to slime heavily and where a filter is not economic.A typical CCD circuit usually employs from two to five thickeners and can employ either a ""clean"" washing solution of, say, pure water or else the hydrometallurgical circuit may generate a ""dirty"" barren solution containing an appreciable amount of soluble component which may be advantageously returned to the process as CCD wash solution. Various authors have treated the case for clean washing solutions (Svarkovsky 1977, Merritt 1970). For the case of dirty wash solutions, an algorithm has been developed to enable efficient modelling by the BEMSIM computer program, because the need for an accurate method to calculate soluble losses is required when performing an economic trade-off analysis of the value of product lost in the tails as a function of the number of thickeners."

Jan 1, 1990

By Alain Simard, Sylvain Lacroix, Louis-Martin Dubé, Pierre Pilote

"The Harricana-Turgeon belt (HTB) is a poorly known volcano sedimentary belt in the NW part of the Abitibi Sub-province; it includes the Matagami, Joutel, Brouillan and Casa-Berardi mining districts. The HTB is dominated by volcanic rocks, which covers 65% of its surface area, followed by sedimentary (18%) and plutonic (17%) rocks. It is also transected by numerous deformation zones located either at the contacts of volcano-sedimentary units and granitoid bodies or cross-cutting them. A preliminary geological synthesis shows that mineral deposits are associated with certain regional geologic elements.The volcano-sedimentary units are grouped here into twelve band-shaped lithotectonic domains, most of which extend for more than 150 km E-Win the HTB. Each domain is defined by lithologies and facies associations, and gradiometric and electromagnetic signatures.Eight domains are composed of basaltic or basaltic to komatiitic associations, interlayered with thin pelagic sediments, representing sub-marine lava plains. Two domains are composed of basaltic to rhyolitic associations that are interpreted as volcanic arcs formed by one or several central volcanic complexes.The sedimentary rocks are grouped into two lithotectonic domains. Each is composed of rhythmic sequences of turbiditic sandstone- siltstone-shale, Algoma-type banded iron formations and conglomerates bearing plutonic and volcanic pebbles. These three facies come partly from mass flow at the bottom of a slope in a moderately deep marine environment. In each domain, a conglomerate sandstone- siltstone sequence, containing poly genetic pebbles of local provenance, is similar to Timiskaming-type alluvial deposits.The nineteen granitoids, found within the HTB and at its border, belong to numerous petrographic suites, and have been grouped into four structural families: pre-tectonic, pre- to early-tectonic, syn- to late-tectonic, and late- to post- tectonic. The pre- to early-tectonic plutons are presumed to be sub-volcanic and are generaly associated with the volcanism of central complexes.The HTB mineral resources consist essentially of polymetallic (Cu-Zn-Ag-Au) and gold (Au-Ag) deposits. The polymetallic deposits are located exclusively in the two lithotectonic domains composed of basaltic to rhyolitic associations (Matagami-Brouillan and Joutel Raymond). All gold deposits are associated with deformation zones superimposed on lithotectonic domain contacts and highlighted by graphitic units. Most of the deposits are hosted in the Casa-Berardi and Douay deformationzones, located at the contact of the Cartwright basaltic to komatiitic domain and the Taibi sedimentary domain"

Jan 1, 1990

By R. R. Klimpel

The grinding of coal-water slurries has received increasing industrial attention during the last decade. In particular, there is long-term interest in the use of pulverized coal-water slurries to replace oil in combustion equipment and the development of coal gasification/liquefaction processes which require coal-water slurries as feed. More specifically, the use of coal-water slurries in gasification requires grinding a high density slurry containing the smallest amount of water consistent with slurry pumping and spraying. As part of a fundamental engineering research support program aimed at the industrial implementation of dense coal-water slurry grinding, this author has published several papers on how specific rates of breakage vary as a function of slurry rheology, Klimpel (1982, 1982/83). These papers demonstrated that there is a consistent pattern of change in specific rates of breakage of coal in dense slurries with controlled variations in slurry rheology. By matching rheological data with laboratory grinding results, it was possible to identify directly slurry conditions that correspond to: (1) slowing down of breakage rates, (2) the occasional acceleration of breakage of some sizes, and (3) conditions where chemical additives will increase rates of breakage.

Jan 1, 1990

The National Institute of Occupational Safety and Health has classified diesel exhaust as a potential human carcinogen. Though standards for diesel particulate matter (DPM) in the work place have not been established, concern for the health of miners is prompting mine operators to consider methods for reducing worker exposure to diesel exhaust. Approach One of many methods for reducing DPM being investigated by the Bureau of Mines is the use of additives in diesel fuel to improve combustion. Research Results Three fuel additives have been tested in Caterpillar and Deutz diesel engines which are similar to types used in underground mines. One iron-based additive containing ferrous picrate had no effect on emissions. A second iron-based additive containing ferrocene reduced DPM between 5 and 45 pet depending on engine operating conditions. The 37-pct reduction for an 8-minute duty cycle, which includes a wide range of transient loads and speeds, is considered to represent in-mine performance.

Jan 1, 1990

By Pinn N

Geosynthetics is an all encompassing word to describe a number of man-made products usually from hydrocarbons which are used in conjunction with the soil. The specific products are:Geotextiles Geomembranes GeonetsGeogrids GeocompositesIn mine establishment and associated construction work, Geosynthetics have proven to be successful in a wide range of applications. For example, geotextiles are now used to assist with the establishment of access roads, site preparation, haul roads and in connection with the construction of embankments for storage ponds and dams as well as for general hydraulic and foundation engineering problems.

Jan 1, 1990

By L. Woollacott, R. P. King

Although several models for the carbon-in-pulp (CIP) or carbon-in-leach (CIL) processes have been published, most of these models do not consider in detail the way in which the carbon phase flows on large-scale plants. This paper illustrates the importance of these details if the CIP or CIL process is to be modeled correctly. An appropriate model, based on population-balance techniques, is then derived. Suitable mathematical techniques for the solution of the model equations are also described. Finally, a method for estimating the model parameters for a full-scale plant is described.

Jan 1, 1990

By R. L. Grayson

Productivity achievements in underground coal mining over the past ten years highlight the improvement of management practices as well as the adoption of new technology. Research findings and results from operational studies characterize the aspects of good management that translate into high productivity. In concert with these findings, the Mine Management Support System (MMSS) is being developed, under co-sponsorship of the U.S. Bureau of Mines and the West Virginia University Energy and Water Research Center, as a knowledge-based system to enhance more efficient management of underground coal mines. Concentrating on capturing the intricate knowledge needed to manage a mine effectively, MMSS will encompass information and rules on work scheduling, desired work practices, regulations impinging on operations and planning, responses to operating problems, and the labor-management work agreement.

Jan 1, 1990

By Phillip Crowson

INTRODUCTION This discusses some of the economic risks and uncertainties which face any company investing in new mineral ventures. These differ mainly in degree rather than kind from other large capital intensive projects, except that economic risks are compounded with technical risks. Mines face a wide variety of physical risks, and in addition the ore reserves may not prove as ample, nor as amenable to treatment as the feasibility studies indicate. On the economic front, mineral projects are subject to risks of fluctuating prices and sales volumes, no matter where they are located, or how they are financed. Typically, they are heavy users of capital compared with their owners' internally generated funds. Long term debt of various types is still the favoured form of finance. A project's currencies and cost often differ from each other and from those of the parent company. Facing up to the various risks associated with fluctuating and uncertain revenues, interest rates and exchange rates are amongst the hardest tasks for natural resource companies. ATTITUDES TO THE MINING INDUSTRY Some have questioned whether the game itself is now worth playing. They have argued that the mining industry's mediocre rewards in the past decade have been insufficient, compared with the risks involved. They can see no prospect of dramatic improvement in the next decade. Demand is highly cyclical and tends to grow less rapidly than economic activity, as a whole. Barriers to entry are low in most mineral markets, but impediments to exit can be substantial. Exit is especially problematic in those minerals where there are large state shareholdings and/or where less developed countries are major producers. The consequence is claimed to be an endemic tendency to excess capacity, and prices barely adequate to cover marginal cash costs. Many of the petroleum companies that moved into mining with such high expectations in the late 1970s have retreated, often bearing the scars of heavy losses. Individual shareholders, taken collectively, place low valuations on their investments in mining companies. The price/earnings ratios of the major mineral producing companies are low compared with their historical averages and with those of other industries. PRICE: EARNINGS RATIOS (October 1988) [UK Industrials 12.0 RTZ 8.4 Cons Gold 12.2 US Industrials 13 - 13.4 Alcan Alcoa Amax Asarco Cyprus Minerals Freeport Copper Inco Inspiration Magma Copper Newmont Mining Nord Resources Phelps Dodge Reynolds Metal Canada TSE 300 10.6 Cominco 8.7 Falconbridge 5.3 Noranda 7.0 Rio Algom 7.2 Teck Corporation 17.] NOTE: Mining companies' p/e based on prospective 1988 earnings, from Kleinwort Benson Securities' weekly Mining World, October 1988. Until 1987, it was argued that share prices correctly reflected the companies' poor earnings potential. Subsequently, the argument has been that earnings have been unnaturally boosted by cyclically high metal prices. The stock market valuations, therefore, correctly reflect future earnings, or at least expected earnings. This seems to be a case of Heads, I win; Tails, you lose. The underlying analysis of metal markets appears

Jan 1, 1990

By T. S. Bannos

Section 1417 of the Safe Drinking Water Act Amendments enacted by the O.S. Congress prohibits the use of lead containing solders for potable water systems in new construction or when making repairs. The legislature defines "lead-free" solder as containing less than 0.2% lead. In the development of a new solder it was recognized in addition to the lead free requirement, the alloy should perform as well as the popular 50/50 tin lead solder, both in application and properties. Another objective was to have only nontoxic elements. This led to the development of a 4.0% copper, 0.5% silver and 95.5% tin solder. Review of the merits of other alloy systems and the development of the physical properties along with test data are presented for the lead free tin. rich alloy.

Jan 1, 1990

By Carl E. Nelson

Shallow epithermal stockworks hosted by maar eruption craters contain over ninety percent of the bulk mineable gold identified to date in the Circum-Caribbean region. Pueblo Viejo (Dominican Republic) and Santa Rosa (Panama) contain combined gold reserves of over 600 tonnes. Bulk mineable gold deposits are also being discovered in and around veins that were formerly mined underground. Bellavista, El Recio and San Martin (Costa Rica) contain combined announced gold reserves of over 50 tonnes. Representative rock suites collected at 8 bulk mineable gold deposits include 291 samples of veins and vein stockworks, hydrothermal eruption breccias, sinter, variably altered host, unaltered host, nearby intrusive rocks and basement. Analyses completed to date show that Circum-Caribbean epithermal ores are enriched in arsenic, mercury and antimony as well as gold and silver. Exploration efforts in the region naturally focus on districts with past production. However, an order of magnitude more bulk mineable gold has been discovered in shallow epithermal stockworks outside of the old bonanza vein camps. Exploration guides include basal island arc volcanic sequences, hydrothermal and hydrovolcanic (maar) eruption breccias, thinly-bedded carbonaceous maar sediments, and hot spring-related silicification and argillic alteration.

Jan 1, 1990

The cost of constantly extending a decline tunnel that plays a part in the actual extractive process is a revenue cost. The characteristics of such a decline tunnel are that it is dug in a series of relatively small excavations. It follows the ore body and is dug as close to the ore body as practicable. In addition, the decline allows for the extraction of ore in the immediate vicinity, with the ore being extracted in a relatively short period of time.

Jan 1, 1990

By Ken Wood, Luc Duval

"The development and operation of the milling circuits treating the different Selbaie orebodies are discussed in this paper. The project is reviewed from metallurgical evaluation through construction to present operating status. The current flowsheets are described, with discussion of some unusual features.IntroductionThe Selbaie concentrator commenced initial production in August 1981, treating underground B zone copper ore in a single 1500 t/d circuit. Throughput was increased to 1650 t/d in 1985. The mill was expanded in 1986 to treat ore from the A-I zone open pit; an independent circuit was added to selectively treat 5000 t/d of copper-zinc ore. Current total mill throughput through both circuits averages 7200 t/d with the production of approximately 270 t/d of copper concentrate and 230 t/d of zinc concentrate.This paper describes the stages involved in bringing the project from initial laboratory testing to its current status as one of the most important producers of silver, copper and zinc in Quebec and a major employer in the region."

Jan 1, 1990

By Lynton Gormely

Oxygen transfer in a stirred tank bioreactor has been modelled mathematically to determine the trends in transfer efficiency (kg transferred per kWh) with transfer rate, tank depth, superficial velocity, and mixer power.

Jan 1, 1990

By John J. Sammarco

The U.S. Bureau of Mines seeks to increase safety and efficiency in U.S. coal mines. One approach is to develop technology for automation of a continuous mining machine. Realization of an autonomous mining machine requires development of subsystems for machine intelligence, navigation-positioning, and computer control. This report focuses on investigation of one subsystem, an onboard heading system, which would be responsible for determining and controlling machine heading. The onboard heading system investigated is a multisensor system to determine machine heading, pitch, and roll. A directional gyroscope provides heading (yaw), fluxgate sensors provide a compass heading, and gravity-referenced clinometers give machine pitch and roll. The system utilizes a dedicated microcontroller networked to an external system of computers. Tram commands, supplied to the network from external computers, are executed by the onboard system. Sensor feedback is employed for closed-loop control of machine heading by controlling pivots and turns. The report discusses operating limitations and error sources of system sensors and presents test results of closed-loop control of machine heading. Results of tests with a mining machine are used to exhibit various sensor shortcomings and to evaluate control of pivots and turns.

Jan 1, 1990

By L. G. Austin

The use of crushed power station slags, both natural and coated, as granules for roof shingles shows some promise. Test shingles weathered for some years showed rust spotting and granule deterioration as serious problems. Chemical analysis on a particle-by-particle basis using a scanning electron microscope-energy dispersive spectroscopy system showed the wide variability of chemical composition of the granules within a given sample. Analysis of particles acting as sources of spotting within the weathered samples showed high iron contents but no rules could he developed for predicting the long-term stability of different compositions.

Jan 1, 1990

By Arthur L. Holloway, James C. Mugford

"The Underground Research Laboratory (URL) is located in southeastern Manitoba, in the Lac du Bonnet granite batholith of the Canadian Shield. It was constructed by Atomic Energy of Canada Limited (AECL) to conduct geotechnical research for the Canadian Nuclear Fuel Waste Management Program, assessing the concept of permanent disposal of nuclear fuel waste deep in plutonic rock.One of the primary objectives of the research program at the URL is to develop a nondestructive rock mass characterization method that can be used during siting, design and construction of a used fu el waste disposal vault. An experimental program was established to assess radar reflection profiling as a technique for fracture characterization in granite. The highly resistive, homogeneous nature of the Lac du Bonnet granite is ideal for the propagation of electromagnetic energy at the radar range of frequencies and water-filled fracture zones act as excellent reflectors because of their contrasting electrical properties.Radar reflection profiling was undertaken to characterize a major fracture zone located between 5 m and 10 m below Room 211 on the 240 m level of the URL. The profiling was done at a frequency of 120 MHz, on a 1m grid laid out on the bare rock floor of the room. Reflectors identified in the analog data were correlated between the profile lines, digitized, and a three-dimensional surf ace for each recognizable reflector was constructed. These surf aces were then compared with data obtained from the examination of numerous cores from adjacent boreholes intersecting the fracture zone. A very good correlation was found between the major radar reflectors and the most intensely fractured regions of the zone. Modelling studies also showed that a series of prominent shallow radar reflectors were caused by a borehole drilled close to Room 211."

Jan 1, 1990

By Prisbrey K., N. Choi, A. Burbank

Large tonnages of low grade refractory gold ores are not presently being treated because they resist direct cyanide heap leaching and because they are too low in grade for more expensive oxidizing pre-treatments. If they could be oxidized while remaining in heaps, they could be economically leached with cyanide. The solution is to use bacteria to partially oxidize the encapsulating pyrite mineral which allows cyanide dissolution of the gold in a separate treatment. A variety of refractory ores from different locations was crushed to minus three quarters inch, loaded into columns, and inoculated with T. ferrooxidans. The bacteria attacked the pyrite causing biooxidation, and gold recovery increased 30 to 120 percent after three months curing.

Jan 1, 1990

By Maiman R

One method of forecasting prices of metals is based on analysis of historic relationships between prices, inventories and consumption. The first, but generally overlooked step in this analysis should be to remove from the inventory and consumption figures the effects of seasonal variations. The next step is to construct diagrams which show prices plotted against ratios of inventories to consumption. These diagrams indicate that, when inventories are high, prices show little response to changes in inventories. Below a critical level of inventories, however, the psychology of the market changes and small changes in inventories lead to large moves in prices. The critical level of inventories is termed the "pinch-point"; the diagram which shows prices in relation to ratios of inventories and consumption may be called a "pinch-point diagram".

Jan 1, 1990

By D. Butler

Subsurface density changes can be detected by very precise surface gravity measurements. A feasibility study, combined with field experience using modern instruments, will indicate the probability of success. In addition to projected anomaly parameters, surface conditions that effect the survey precision must be evaluated. Examples with excavated zones at 9 m (30 ft) of depth and [+] 22 microgal error are compared to the same model at 30 m (98 ft) of depth. The figures illustrate anomaly detectability. The survey error is a function of surface topography and lateral density variation in the very near surface.

Jan 1, 1990