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By J. C. Engel

Recent innovations in mine safety include the use of mercury vapor lamps for mine vehicle illumination. Such lamps, however, extinguish whenever the line voltage at the machine momentarily sags or is interrupted. The lamps must then cool for several minutes before they will restart. By supplying reduced high frequency power to the lamps from an auxiliary source, it is possible to maintain ionization in the arc tubes preventing the lamps from extinguishing. Essentially an auxiliary high frequency supply, the keep alive system provides additional power to the lamps automatically whenever the lamps are in danger of dropping out. The system can also provide the operator with the ability to dim the lamps at will for periods of up to three minutes by simply interrupting the 60 Hz power to the conventional ballasts. Each unit, housed in a steel explosion proof enclosure with a volume of approximately 0.6 ft3, is capable of servicing up to six 175 watt H-39 mercury lamps and two 100 watt H-75 reflector flood lamps. A total of 16 units were produced for the USBM under this contract and its extension.

Jan 1, 1979

By R. L. Mazza

This final report on methods of reducing and controlling methane in coal mine gob areas indicates that vertical degas holes are beneficial to the mines of northern West Virginia working the Pittsburgh Coal. The USBM funded project involved the drilling and testing of eight vertical holes (four over longwall panels and four over room and pillar panels) based on a review of 13 previously in existence. Areas of observation included gas production history, flow entry profile, underground methane reductions, strata separations, and casing loads (accompanying subsidence). Observations led to the drilling of successful holes drilled short of the mine. Eleven gas production response to applied vacuum tests were conducted at nine degas holes under the contract. Significant production responses were recorded over longwall gobs.

Jan 1, 1977

By Larry Stearns, Lori Tiefenthaler

Remediation of contaminated soil represents a significant market for application of Deep Soil Mixing (DSM). Eighty-one percent of U.S. Environmental Protection Agency (EPA) Superfund Program’s site remedies have involved contaminated soil. Contaminated soil is frequently treated by In-situ Solidification/Stabilization (ISS). ISS treatment of contaminated soil involves mixing binding agents into soil using DSM techniques. DSM is a core business for many DFI members. Members may improve and broaden their services to clients by learning about the recent ISS treatment of contaminated soil at a Superfund site. ISS treatment is part of the EPA-selected remedy for a Superfund Site in the metro New York City area. The property has seen heavy industrial use for more than a century. Soil at the site is contaminated with a variety of volatile organic compounds (VOCs), polycyclic aromatic hydrocarbons (PAHs) including coal tars and heavy metals, principally arsenic and lead. Beginning in 2017 and continuing through 2018, approximately 150,000 cubic yards (115,000 cubic meters) of soil will be treated by ISS at the case study site. Portland cement and slag cement are mixed into the soil by DSM techniques using GPS guided excavators to immobilize the hazardous constituents within the treated soil. ISS treatment by DSM will contribute to redevelopment of this valuable property. This paper will describe ISS constructability and performance, case study grout mix design with geotechnical results for strength and permeability, and deep soil mixing techniques. INTRODUCTION In-situ solidification and stabilization (ISS) is a deep soil mixing (DSM) technique applied in the environmental remediation field to physically encapsulate, or chemically bind, contaminates of concern such that the impacts to human health and the environment are mitigated. Common remediation applications of ISS include mixing cementitious reagents into contaminated soils to form a monolithic mass with desired performance characteristics, and the installation of vertical subsurface walls designed to control groundwater movement. A key characteristic of ISS is that the contaminated soils are treated in their existing location at the project site and then are left in place after treatment. Typical performance characteristics of the ISS treated soils include improved unconfined compressive strength (UCS), reduced hydraulic conductivity (HC), and reduced leaching potential of soil contaminants. Increased shear resistance of the treated soil may also be a performance requirement where seismic loading is a concern.

Jan 1, 2018

By L. Adler

Two basic cases involved in the design of an opening in bedded rock are: 1) where the beds deflect from each other so as to be separated; and 2) where the beds deflect onto their lower neighbor, loading the latter while reducing their own load. Analysis of case 1 is relatively simple, while the interference of the original deflection curves in case 2 complicates analysis of the latter. Figures and formulae are presented for determination of interference loading in this situation. The design of an opening in bedded rock involves two basic alternatives.1'2 In one case the beds deflect away from each other, so as to be separated from their neighbors; in the other case the beds deflect onto their lower neighbor, loading it, while reducing their own load. This is shown in Fig. 1. The first case lends itself to a simple analysis, since the upper and lower boundaries of each beam remain a free surface. In the latter case, however, due to the interference of original deflection curves, the analysis is more complex. Earlier investigators of this interference problem solved it by making the tacit assumption that this type of loading was uniformly distributed along the beam's length. While there is no intuitive justification for this assumption, its use does lead to an approximate solution. Still, a more exact solution does not require this apparently unrealistic restriction. To achieve initial simplicity, the analysis will at first be limited to a two-bedded sequence, as in Fig. 2. Since both beams have identical end conditions and spans, the original deflections of their center lines are members of the same family of curves, as shown in Fig. 3. Therefore, if interference occurs at one point along their center lines, it will occur at every point. For convenience, the midspan point is that usually examined. Deflection at midspan for a uniformly loaded beam regardless of end conditions is: where c is a constant depending on end conditions; w is the body load and equals yh, lb per ft; y is the specific weight of rock, lb per ft'; L is the span, ft; E is Young's Modulus, lb per ft2; I is moment of inertia (for a rectangular section), I = bh3/12 = h3/12, (ft4); b is the width of beam and equals one; and h is the thickness of beam, ft; or 3U > yB an Substituting the appropriate values into Eq. lb, interference between the two beds can be predicted. Should it occur, the additional loads along the lower boundary of the upper bed and the upper boundary of the lower bed must be determined. From the principle of action and reaction, these added loads are known to be equal and opposite, as indicated in Fig. 4. Since the final deflection curves for both beds are identical (Fig. 3), their successive derivatives of y with respect tox must also be identical. That is:

Jan 1, 1961

By W. C. Babcock

This report covers Phase V of .a continuing program to apply a new liquid membrane process called coupled transport to the recovery pf metals from hydrometallurgical leach solutions. During this phase of the program, a membrane system of moderate scale was constructed and field-tested at the Exxon Highlands Mine and Mill Co. site near Douglas, Wyoming. The test unit contained four hollow-fiber membrane modules, each with 100 ft2 of membrane area. In the field tests, about 1000 gallons per day of leach solution was processed. The unit was operated on the leach solution for about 50 days. Leach solution entering the unit contained 100 ppm uranium. This concentration was reduced to about 5 ppm by coupled-transport treatment, and the uranium was concentrated to about 2 wt% as a uranyl carbonate product. Under these conditions, a transmembrane uranium flux of about 2.5 lb/ft2-year was obtained. An economic analysis showed that the cost of recovering uranium from this leach solution via coupled trans-port is about $1.20/lb. At higher concentrations of uranium in the leach solution this cost is reduced. For example, at 1000 ppm the cost of uranium recovery is about $0.30/lb.

Jan 1, 1983

By Henry P. Wheeler

As recently as 1915, helium was available only in very small quantities at a cost equivalent to $2,500 per cubic foot. It was a laboratory curiocity, and its properties were of interest to a limited number of scientists (11).3/ During the past 30 years, however, helium has grown from a plaything of scientists to a factor of importance in the prosecution of the recent war. Navy blimps filled with nonflammable helium proved to be more than a match for German submarines operating in the Atlantic. American bombers were able to fly unheard-of distances to drop bombs on Tokyo, Nagoya, Yokahama, and other Japanese cities because they had been made lighter with magnesium, arc-welded in a helium atmosphere. The Army utilized helium-filled radio-sonde balloons to obtain vital information concerning weather conditions affecting D-day invasions and other military maneuvers.

Jan 1, 1946

By Vladimir Admek, Paul W. Jeran, Michael A. Trevits

It has' been found that lithological conditions over the Pittsburgh Coal bed cause the subsidence coefficient to vary within the area of the subsidence trough. This precludes the use of European developed predictive models, which are based upon a constant subsidence coefficient. Regression analysis of the distribution of subsidence coefficients from 11 Bureau of Mines, U.S. Department of the Interior, longwall panel studies on the location relative to the edge of the panel has yielded a third degree polynomial equation. This equation has been incorporated into a BASIC computer program for use on a personal computer that allows users with no previous knowledge of the theory of subsidence to predict vertical movements over typical longwall panels in the Northern Appa1achian Coal Basin.

Jan 1, 1986

By Martin Pratt

This paper is an overview of deep foundation engineering in Hong Kong past, present and future. The enormity of the subject compared with the space available makes brevity inevitable. Issues of construction and design are covered and some examples of recent challenging projects are given. The content is aimed at those with an interest in foundations generally, but with limited knowledge of the Hong Kong scene. Reference is made to informative publications for further reading on specific topics.

Jan 1, 2000

By R. C. D. Phillis

Conventional stoping in hard rock mining is largely considered an operational environment. This paper suggests that stoping falls within the realm of a project management environment typified by uncertainty, variation, and large numbers of interdependencies. Stoping was then equated to a micro-project with many simultaneous activities that had to be executed accurately using finite resources within limited shift durations in order to reach specific goals. Critical chain project management (CCPM) principles were applied to the stoping activities, and the results showed that the number of blasts per panel can be significantly increased by successfully moving the distribution of work as close as possible to the start of shift. Critical chain principles also assisted in facilitating re-focusing and teamwork among stoping crews as well as between day- and night-shift crews. The main recorded success was in managing inherent protective capacities/local contingencies/fat/buffers that are found in all projects. The impact on mine health and safety (MHS) was significant as individual operators and crews became convinced that they could perform all stoping tasks (activities) without compromising accuracy or speed.

Jan 1, 2011

By Q Johnston

Since its inception in 1990, improved metallurgical processing technologies, coupled with mine planning enhancements and improved geological knowledge, have sequentially enabled better efficiencies and economies of scale at the Macraes Gold Project. Over a period of 11 years, processing enhancements have been achieved by: +        increasing mill throughput, from one million tonnes per year, to current throughput of 3.9 million tonnes per year; +        improving recovery rates, from 70 % to approx 84 %; and +        performance enhancement through innovation, eg the use of kerosene to combat ClL pregrobbing. Future processing improvements have been identified in optimising the ore feed and processing flowsheet. The introduction of the autoclave has transformed the process flow form a traditional 'mill headgrade and tonnes milled' operation, to a 'sulphur/gold ratio and sulphur tonnes oxidised' operation.

Jan 1, 2001

By George L. Wilhelm

Timber support of mine openings continues to be an effective system for ground support, due to its avail¬ability, flexibility, and ease of installation. Timber support of mine openings as a primary method to support loose rock has been replaced to a large extent by rockbolting and by filling systems. How¬ever, the many designs of square-set timber and varia¬tions of crib and stull support that have been developed to suit many stope configurations have proven reliable over many years of application. Integrated in modern excavation and stoping methods, timber remains an im¬portant ground support material for today's mines. ADVANTAGES AND DISADVANTAGES OF TIMBER SYSTEMS Timber, when used as a part of the total support system, is recognized for its unique support properties. More than a cover to prevent minor falls of ground, timber systems have been carefully designed to provide adequate support with sufficient compressive qualities to achieve a safe working environment in extremely diffi¬cult ground conditions. In some cases, a timber support method is designed to yield while retaining its protec¬tive support qualities. Little or no initial investment in equipment or plant is required for incorporating timber into the mining support system. Low cost cutoff saws and portable chain saws are sufficient equipment for effective use of dimen¬sioned (sawed) or round (stull) timber support. Until recently, small sawmills of various complexity were com¬mon at mine surface plants. Sawmills at the mine sites have generally been replaced by timber vendors' mills. Suppliers have been able to use efficient cutting and lumber handling methods to reduce the cost of mine timbers. Most suppliers will package dimensioned mine timber into bundles that are suitable for handling down mine shafts and on level conveyances. The principal disadvantage of timber as a support method is higher material cost and labor cost associated with its labor-intensive installation. Furthermore, stand¬ing timber reserves of mine quality wood are in short supply in some areas, and heavy competition exists for alternative uses of the timber supplies. Vendors are reluctant to supply large cross section dimension tim¬bers relatively free of defects. Some mine operations require 4.8-m (16-ft) lengths of firm timber over 0.09 m2 (144 sq in.) in section and these are difficult to obtain in large quantities. APPLICATION OF TIMBER FOR MINE SUPPORTS Timber used in mine support has been cut from many species of trees. A firm hardwood with physical properties similar to western Douglas fir has been pre¬ferred in the US. Other harder and softer woods, how¬ever, have been used when readily available or where the specific strength or crushing quality of the wood is a desired specification of the support system design. Hard¬ wood, commonly oak, has been used where maximum crushing resistance is required. Mahogany and fir are widely used for shaft guide timber. Normally, timber is used with its core axis parallel to the long axis of the timber dimension. However, in some cases, it is placed normal to its core in a "butt" log position, so as to provide maximum resistance to abrasion of the ore passage adjacent to the cut end of the block. By selective placement of timber block¬ing, controlled resistance to ground closure can be achieved which will prevent early failure of primary sup¬port members of the timber structure. Timber is widely used in modern mining operations as a construction member for chute-lip support. These designs are tailored to each operation to conform to the dimensions of the haulage equipment being used. As a construction material, wood requires none of the spe¬cial equipment necessary for placement of concrete or steel support. Placement of these alternate support ma¬terials requires carefully dimensioned and engineered excavation for their installation. Wood can be easily sawed to fit on location. The successful use of timber in heavy ground de¬pends on the careful and accurate placement of block¬ing and bracing to achieve the controlled yielding re¬sistance needed to support the mine opening. Similarly, frequency, size, and placement of top and bottom block¬ing stulls in flat-bedded deposits are carefully determined to provide adequate support at the mining face. Con¬trolled caving through failure of the stulls may be required as the scope retreats from the earlier mined-out sections. The support program must achieve both of these dimensionless qualities by specification of stull frequency and size. The utility of the square set-system of ground sup¬port and timber support is described in Chap. 2, re¬printed from US Bureau of Mines Information Circular 6691. Four examples of effective use of timber for support of stoping and other mine openings are pre¬sented in other chapters in this section. The Gilman mine's use of Mitchell slice stoping described in Chap. 3 is an early modification of the square-set mining system. This application proved reli¬able for heavy ground and overcame some of the dis¬advantages of conventional square-set timber. Chap. 4 describes the Burgin mine's use of timber with other reinforcement material. This combination of materials achieved high strength and control with yielding com¬ponent members necessary for heavy, squeezing ground. Chap. 5 describes the Bunker Hill mine's use of square¬set timber in a new configuration that provides an effi¬cient and safe support for stoping using small load¬haul-dump (LHD) mobile equipment. Chap. 6 describes some considerations in placing the widely used stull in bedded ore deposits. Finally, in Chap. 7, cost calcula¬tions for

Jan 1, 1982

By A. Haines, O. Varaud, I. Baidoo

Abosso Goldfields Limited (AGL) is in the process of developing an expansion of their Damang Open Pit gold mine in Ghana. AGL acquired the Damang mine in January 2002, with SRK participating in the geotechnical investigation and design for the project since 2001. A deep resource drilling program, completed during 2004, intersected an extension of the orebody below the then planned final pit floor. A feasibility study has been completed to determine the economic extraction of this deep ore with an expanded pit shell. The Damang mine is in a stockwork sulphide deposit at the culmination of the Damang anticline. The deposit occurs as hydrothermal mineralisation associated with dominantly east dipping thrusts and sub-horizontal quartz veins. Primary gold mineralisation also occurs in the conglomerates of the Tarkwaian Formation. The geological units consist of steep easterly dipping dolerite, sandstone, siltstone and phyllite beds, with the weathering profile comprising saprolites overlying a relatively thin joint oxidized horizon. It is planned to deepen the current open pit to a final depth of up to 270 m, primarily by the development of a push-back of the eastern and western walls. The edge of the Eastern Tailings Storage Facility (ETSF) is currently located within 80 to 100 m of the crest of the existing pit. The geotechnical design focused on the optimization of the bench face angle and finally recommended a ?Steep Slope Strategy?, involving 24m high near vertical benches. Limiting bench stack heights of 96m at a maximum of 66° were derived from the influence of major structures and the variation in rock mass conditions. The overall slope angles in each pit sector were developed around the requirement for haulage ramps. One of the main design challenges was to optimise the standoff distance between the final pit crest and the ETSF. This process had to consider maximum access to the resource without undue influence on or from the nearby tailings dam. A planned increase to the height of the dam wall was an additional factor in the design. Dewatering of the pit walls was also a major consideration in this tropical environment.

Jan 1, 2006

By A M. Sherwood

The Otago and Southland lignite deposits represent by far the largest known fossil energy resources in New Zealand. Despite their size they have remained virtually untouched since exploration in the 1970s and 1980s defined their extent. In total there is an estimated 10.9 billion tonnes of lignite in 13 defined fields in Otago and Southland. Much of the exploration work only targeted seams at shallow depth and it is highly probable that there are further resources at depth in the fields that have been explored to date.   L&M Lignite Limited (L&M) holds exploration permits over a number of lignite deposits and is currently engaged in pre-feasibility studies to investigate the potential of the lignites for gasification. L&M is focussing its studies on the Hawkdun and Ashers-Waituna deposits. Coal quality in these deposits, particularly Ashers-Waituna, is highly suitable for gasification. In total the two deposits contain 1647 Mt of potentially recoverable lignite. L&M has engaged a variety of consultants to progress this project. The Hawkdun and Ashers-Waituna deposit databases have been re-evaluated and the resources remodelled. Further drilling has been carried out and the coal quality database has been expanded. The baseline project is to develop a mine to feed a plant that will produce liquids, specifically low-sulphur diesel and naptha, using the Fischer-Tropsch process. The project anticipates a staged development of 10 000 barrel per day units, each requiring mining at the rate of 12 700 tonnes of lignite per day. The production of other products including ammonia-urea, methanol, hydrogen and electric power is also under study.

Jan 1, 2005

By Walter D. Holland

This is one of a series of instruction guides developed to help instructors present health and safety training courses to workers in the coal mining industry. This course is intended for training those, usually the safety officers, who perform surveys fur inhalation contaminants in above ground work areas. The handbook entitled ?Handbook for Surveys of Inhalation Contaminants in Above Ground Coal Mining and Processing Work Areas? (NTIS #PB-243-35";) is used as a manual for the course and as a prime reference when performing the actual surveys or interpreting the sampling results. There are six experiments for the students to perform during the course to familiarize them with the sampling devices routinely used during the surveys.

Jan 1, 1976

By Catherine N. Mulligan

Thickening of mine tailings is a relatively new concept for their sustainable management. Removal of water from the tailings to form a paste instead of slurry disposal decreases environmental and geotechnical concerns. As the use of these pastes is relatively new, their behaviour requires investigations such as liquefaction and seismic stability, freeze-thaw behaviour, consolidation and leachate characterization. Slurry density, ore type, particle size distribution, specific gravity and environmental conditions can all influence paste characteristics. In this paper, the effect of the above-mentioned parameters is examined. New developments in water removal, and additives (such as flocculating agents, cements, organics, fertilizers, etc) leading to low moisture content tailings are reviewed, and the potential for thickening to enable sustainable management of mine tailings is discussed with respect to storage volume requirement, use of virgin land, consolidation of the tailings, land use after decommissioning.

May 1, 2007

Caterpillar’s 797 327-t (360-st) mining truck is currently being tested at the company’s proving facilities. Mine evaluations began in the second quarter. The unit will be commerically available in North America in 2000 and worldwide in 2001. The new model is the largest of Caterpillar’s off high-way truck line. In addition, the company has replaced its 966F series II and 970 F wheel loaders with the966G and 972G models. 797 mining haul truck Caterpillar developed the 797 mining haul truck in response to mining companies seeking to reduce cost per ton in large-scale operations. The 797 is sized to work with loading shovels used in large mining operations. And Caterpillar will match the body design to the material being hauled, to optimize pay-loads.

Jan 1, 1999

By L. D. Johnson

On a project which is to develop a system to suppress coal dust explosions, a facility has been built and several devices tested. The facility is a 317-foot, 4.5-foot diameter shock tube and to date 53 tests have been carried out with methane-air and methane/coal dust-air as the explosive mixtures. Suppression of slowly propagating (up to 300 ft/sec) flame fronts has been successfully carried out on two tests using the dry chemical extinguishing agent Purple K. Delivery of the material directly into the flame front Seems to be required if effective suppression is to be accomplished.

Jan 1, 1972

By James L. Eirls

Tracor MBA under a contract to U.S. DOI Bureau of Mines designed, developed, fabricated and demonstrated a conveyor belt service machine. It is self-contained, battery powered, rubber tired and capable of handling, storing and transporting conveyor belting, wire rope and associated structures for sectional conveyor belts. While moving the tail section to its next position the machine discharges the belting, wire rope and belt structures. The belting is elevated and separated to provide for the insertion of the structures with minimum expended effort. A hydraulic system provides the power for steering, braking, winding or unwinding under controlled tension the belting and wire rope, operating a load-bed slat conveyor, raising, lowering and locking connection hitches and powering external hydraulic tools. Also, a pneumatic system is available to operate air impact tools. The service machine, with its present components can function in coal seams as thin as 48 inches, double wind conveyor belting 42 inches wide, 400 feet long, load or unload 3/4" wire rope on two separate reels and is controlled by two operators. A complete belt move using this machine requires only four workers. Successful underground demonstrations were conducted in coal mines located in West Virginia and Kentucky.

Jan 1, 1983

By S Henderson

The Thames gold-silver deposits are part of the Hauraki goldfield, situated within the Miocene to Pliocene calc-alkaline Coromandel Volcanic Zone (CVZ). The Waitangi vein system is one of the mineralised ore shoots in the Thames district. The Thames gold deposits are characterised by shallow level epithermal vein mineralisation with phyllic to advanced argillic alteration assemblages and abundant sulphide minerals including pyrite, arsenopyrite, chalcopyrite, galena and sphalerite. Gold occurs as electrum in association with sulphide minerals. Microprobe analyses.of sphalerite grains from the Waitangi deposit mostly range from 0.8 to 1.5 mole % FeS, although one sample contains 9.5 mole % FeS. Arsenopyrite from Waitangi yields a range from 33.1 to 34.6 atomic As (%). There is no discernible correlation between the FeS content of sphalerite and gold grade in the Waitangi deposit suggesting that gold deposition is probably not controlled by changes in temperature and activity of sulphur aS2 that control the FeS content of sphalerite. The possible causes for gold deposition are thought to be boiling, mixing and changes in pH. Sulphur isotope analyses of mixed sphalerite-galena and sphalerite-galena-ehalcopyrite samples yield a narrow range of d34SCDT values (-1.0 to 0.9 ë;n=5), whereas late spongy pyrite gives unusually light sulphur isotope values (-16.7 to -27.9 ë; n=4). The sulphur isotopic values of base metal sulphides from Waitangi suggest that the sulphur was derived from a magmatic source. However, the source of light sulphur in the late pyrite grains is not known. Preliminary fluid inclusion+studies indicate homogenisation temperatures between 173¦ and 284¦C and salinities of 0.23.0 NaCI equiv. wt % (uncorrected for C02). Vein quartz at Waitangi yields d18OSMOW values from 6.8 to 12.7 ë (n=23). The calculated oxygen isotopic composition of ore fluids is between -2.1 to 3.8 ë at 250¦C and -0.1-5.8 ë at 300¦C. Oxygen isotope analyses have revealed significant variations in d18O values with elevation and gold grades. Zones of gold enrichment coincide with a zone of variable oxygen isotope values at the top of the vein system, where boiling and/or fluid mixing most likely occurred. Oxygen isotope values varying with gold grades within the Waitangi conduits suggest that d18O values may be useful in targeting bonanza grade gold mineralisation in epithermal vein systems.

Jan 1, 1993

By Steve Kral

Competition from foreign coal producers could displace as much as 9 Mt/a (10 million stpy) of US coal bound for power plants located near waterways. But, according to a Maryland-based coal consultant, it could be worse. Theoretically, about 52 Mt (57 million st) of domestic coal could be vulnerable to imports by 1990, said Forrest Hill, of Hill & Associates of Annapolis. Hill was speaking to about 150 coal industry executives and experts at the third annual Coal Marketing Strategies Conference in November. Most were at the Denver, CO conference to pick up tips on how to sell coal in an oversupplied market. Imports threaten domestic markets Of the 200 utilities studied by Hill and his staff, 119 are situated near major waterways, he said. However, most of those waterways are not equipped to handle coal from the shipping lanes. Good news for US coal producers. But don't breathe too easily. Foreign coal still poses a major threat to domestic markets, Hill continued. The strength of the US dollar is an obvious factor. But easy access to US utilities located on waterways combined with low rates for ocean vessels give foreign producers another edge. And foreign mines are typically low cost producers. For example, Hill said Colombia's huge Cerrejon mine can deliver coal to an Illinois power plant for $47.87/t ($43.39 per st). That compares to $52.85/t ($47.95 per st) from a Kentucky coal mine. Also, Colombian coal producers can generate a cash flow even if the coal sells for $27.50/t ($25 per st). The main competition US producers face from abroad, as Hill sees it, comes from Australia, Canada, Colombia, Poland, South Africa, and, perhaps, from Venezuela. Domestic producers, however, do have some things going for them. Most US coal buyers, Hill said, "are not wild about the idea of buying foreign coal." A 10% price advantage or pressure from public utility commissions would be needed to force some of them to buy foreign coal, he said. Some of the utilities contacted said they would not commit to more than one-third of their stockpiles to a foreign source. Another advantage for US producers is that they have room in their long-term contracts to cut prices and still maintain a profit, Hill said. Railroads, too, have high profit margins written into their rate structures. They are also aware of the import threat. Therefore, they may reduce their rates accordingly to keep their markets. Marketing's role The energy price shocks of 1972 and 1976 caused major adjustments in world economics. Coal was no exception. High oil prices caused many utilities to look at less expensive coal. As the market improved, coal prices began to respond, said R. Gale Daniel, of Anaconda Minerals Co. But clean air legislation and the strengthening dollar caused havoc in the coal markets, he said. The price of oil crashed, taking with it predictions of record coal use. The result is an oversupply of coal that has led to price cutting. Now, coal marketing must be recognized in its "true leadership role," Daniel said. Marketing people must know when to use spot sales to balance production objectives and maintain cost-effective-

Jan 1, 1986