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By B. F. Westfall

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

Jan 1, 1986

By C. D. Harrison

The 1990 Clean Air Act Amendments specify national objectives for reducing sulfur dioxide emissions from coal-fired power plants System-wide reductions can be achieved by combining various emissions controls technologies and allowances, or compliance credits, that can be purchased, sold, or traded. As part of the Coal Quality Expert development project funded by U.S. Department of Energy and the Electric Power Research Institute (EPRI), Black & Veatch has developed an interactive computer tool, the Acid Rain Advisor (ARA). ARA allows the user to develop integrated system-wide compliance plans by comparing the costs and emissions reduction benefits for emissions allowances and various SO2 control technologies such as coal cleaning, fuel switching, and scrubber retrofits.

Jan 1, 1992

By D. R. Wilburn

This summary of international mineral exploration activities for 2012 draws upon information from industry sources, published literature and U.S. Geological Survey (USGS) specialists. The summary provides data on exploration budgets by region and mineral commodity, identifies significant mineral discoveries and areas of mineral exploration, discusses government programs affecting the mineral exploration industry and presents analyses of exploration activities performed by the mineral industry. Three sources of information are reported and analyzed in this annual review of international exploration for 2012: 1) budgetary statistics expressed in U.S. nominal dollars provided by SNL Metals Economics Group (MEG) of Halifax, Nova Scotia; 2) regional and site-specific exploration activities that took place in 2012 as compiled by the USGS and 3) regional events including economic, social and political conditions that affected exploration activities, which were derived from published sources and unpublished discussions with USGS and industry specialists.

May 1, 2013

By Simon D. Strauss

The recession that began in late 1980 has proved to be not only prolonged and severe, but in certain ways unique in its effect on the mineral industries among the periods of economic slowdown experienced in the Western world since the end of World War II. This time almost all minerals have been affected. In previous business turndowns, by contrast, some mineral sectors have with-stood economic adversity well. They experienced little or no adverse effect-thanks either to a strong secular expansion in the markets for their particular product or to specific factors that caused demand to be well maintained. For example, aluminum, molybdenum, and nickel are three metals that enjoyed extraordinary growth in applications during the years 1946-1973. These metals were little affected during the recessions that occurred in that era. Similarly, coal did not suffer a pronounced drop in sales in the 1974-75 turndown because, with the price of oil rising sharply, a switch away from oil and back to coal was clearly indicated for some energy-intensive applications. Oil itself was largely impervious to the ups and downs of the business cycle until very recently. And the precious metals, gold and silver, have often been regarded as benefiting from reduced economic activity because labor becomes more available, productivity rises, and operating costs diminish. In the current recession, however, no major mineral has escaped the broad trend. The secular growth factors that were previously so evident for aluminum, molybdenum, and nickel have disappeared, at least temporarily. The stable pricing behavior that previously characterized all three of these commodities has been replaced by extreme price weakness and apparent inability of the major producers to continue their roles as market leaders. Coal and oil both have suffered from a sharp drop in energy requirements. There are those who now anticipate a collapse of the market control over oil prices so clearly exercised by OPEC since 1973. If oil prices are no longer effectively controlled by the governments of the exporting countries, then coal prices are also certain to be affected. And the combination of high interest rates, tight money, and a change in public perceptions of precious metals put the skid under gold and silver quotations in 1981 and early 1982. Although inflation has been viewed as the scourge of most Western countries ever since the oil crises of 1973-74, prices-in constant dollars-of most minerals have not risen. On the contrary, with the exception of the precious metals and oil, for most minerals the prices that prevailed at the end of 1982 were close to the levels of the Great Depression of the 1930s in constant dollar terms. Table 1 compares prices for copper, lead, zinc, and aluminum at the end of 1982 with the average prices in 1934, stated in constant 1967 dollars. This emphasis on prices for mineral commodities reflects the fact that profits of mining enterprises vary directly with the level of prices. Manufacturing and retailing enterprises march to a different tune. They establish sales prices based on costs. Their profits tend to vary with volume. Commodities are for all practical purposes fungible, that is the advantages of known brands in marketing manufactured goods have little application in a commodity market. Thus the individual seller of minerals is unable to establish his sales prices. Except where a monopoly is present, he must sell at the going market. His option is to abstain from selling if he finds the price unremunerative. In past recessions, some mineral producers chose to do precisely that-either accumulating a substantial share of their output in inventory or, in prolonged downturns, abstaining from production. During the current recession, however, private-sector mining companies did not have the option of accumulating inventories to any great extent. Capital costs for new mineral projects or for expansion of existing facilities have escalated at an alarming rate since the early 1970s. Added to this has been the heavy cost of installing pollution control or safety equipment to comply with the regulations adopted in most industrialized countries (and particularly the United States) since 1968. The consequence has been that the financial position of most major mineral enterprises in mid-1980 was already strained. To finance increased inventories meant incurring additional funded debt at high interest costs, thus impairing the concern's credit rating. Management Choices Private-sector managements have had to face up to the alternative of either continuing to produce at an unchanged rate and marketing output at unremunerative prices or reducing output. The latter has meant either operating at a curtailed rate, with con-

Jan 3, 1983

By William Gleason

"It has been more than 10 years since Montana Resources’ copper/molybdenum mine has had a lost-time injury at its site in Butte, MT. With more than 350 employees and an average production of about 15.5 Mt/a (17 million stpy), which includes 29.5 kt (65 million lbs) of copper and 4 kt (9 million lbs) of molybdenum, the mine’s journey to a decade of exemplary safety is an impressive feat that has required hard work, commitment and, most of all, leadership from every level of the operation.It has not always been an easy journey, nor has it been one without scrapes and bumps along the way, but it is one that has produced stellar results. Mike McGivern, vice president of human resources, and Pete Steilman, safety manager at the mine, spoke with Mining Engineering about how the operation transformed from a site that was accustomed to collecting citations for safety violations to one that is now collecting awards for its safety record.Simply put, Montana Resources has made safety a value and the people its top priority.The operations faced many predictable challenges in 2003, when the mine was being brought back online after three years of sitting in care-and-maintenance status. It had been shuttered in 2000 because of low commodity prices and high operating costs, and, in the three years that the mine was idled, the equipment became dilapidated, and some of it was no longer in compliance. Less than half of the workforce returned to the site for the restart, and the team was challenged with getting the gears turning again to produce copper and molybdenum. But the most daunting challenge of all of was keeping the workforce safe during the transition.In the first few years of operation the mine racked up citations from the U.S. Mine Safety and Health Administration (MSHA) at an alarming pace, so much so that in May 2006, Montana Resources received a letter from the MSHA District Office informing the company that the operation was being placed on the Potential Pattern of Violations list due to its excessive citation history and high rate of significant and substantial citations. It was clear that something significant had to be done to change the course of action at the mine."

Oct 1, 2019

By G. Pierson

Explanations of commodity price levels, or movements, commonly focus on the supply and demand fundamentals of the particular commodity, or else are assigned to speculative activity. Comparisons of metal price histories with monetary and other economic data support the argument that the supply of and demand for money are no less important in price determination than are the supply and demand of the commodity itself. That these relationships should exist is evident in the price identity and are consistent with monetary theory. The patterns developed have limited usefulness as predictors, but their recognition is essential for the construction of price scenarios for planning purposes.

Jan 1, 1996

By MATT RENAUD, Mustafa Kumral

Mining corporations have spread their operations worldwide in the last few decades. The reason behind widening operations geographically can be seen as it being part of a risk diversification strategy. Given that the technical, financial and social risks are high, favorable deposits, taxation regimes and legislative frameworks create incentives for international mining operations. On the other hand, international mining activities add the risks of permitting, investing, operating and decommissioning to the corporations. These risks could emerge from defaulting, corruption, resource nationalism, social license to operate, and political and legislative uncertainties and instabilities.

By S. F. Willey

The difficulties encountered in justifying replacements for over-age mobile mine equipment at the Gay Mine are common to most mining operations. More critical management reviews, resulting from ever rising capital expenses, increased such difficulties. These increased difficulties are especially apparent to those who are primarily operators and are not statisticians, mathematicians, or computer oriented. The Gay Mine is located 17 miles east of the town of Fort Hall in southern Idaho. This open pit operation annually supplies the J. R. Simplot Company and the FMC Corporation with 1.5 MM - 2.0 MM tons of phosphate ore. Stripping ratios average approximately three bank cubic yards of waste per ton of ore mined. The mobile mine equipment fleet consists of ten 24 yard scrapers; twenty-one 30-50 ton end dump trucks; four 32 42 yard shovels; fifteen dozers in the D-8 and D-9 classes; and three road patrols. Equipment replacement is based on the results of evaluations made on individual units. Authorization of capital expenditures for equipment replacement is dependent upon a favorable profitability index (true rate of return on investment) plus a favorable payout time. The system is based on cash flows and requires the determination of (1) the net cash outflows in the form of capital expenses plus (2) the expected cash inflows resulting from reduced expenses and depreciation tax credits. After adjustments for taxes and the time value of money, the net amounts are used to calculate the required indices. The basic elements for the system related to the replacement of mobile mine equipment include: (1) the determination of dollar penalties to be expected from the continued use of aging equipment; (2) the selection of equipment that will provide the greatest return on the investment dollars; (3) the quantification of the expected savings; and (4) the calculations of the prescribed indices. Inadequacies inherent in previous evaluating methods led to the search for more

Jan 1, 1972

By Richard J. Stoehr

Man has mined in all his time on earth about 3 billion ounces of gold. About one-half of this has been mined in the past 35 years. This gold is roughly in 3 large holdings: one-third held as reserves in Central Banks; one-third held as personal reserves; and one-third is in jewelry or other fabricated products. The world per capita availability of mined gold is increasing and there are many factors and forces shaping gold's future. Currently, gold has a favorable exchange ratio and this is encouraging many new gold-mining developments. Production is increasing and new techniques are surfacing. The use of gold in the financial markets is increasing in some unique ways and gold is again fulfilling its role as a universal money, making gold's future predictable. Currently, man is mining gold at the rate of approximately 44 million ounces annually and is therefore adding to the total supply of gold approximately 1.5% of newly mined gold each year. This current production plays a small role in the pricing mechanisms since a very large part of the 3 billion ounces mined in all of history is available to the market in one form or another.

Jan 1, 1984

By Florian Festge

It has been said that good things come in threes. In the case of screening for mining and quarry operations, profit comes in three distinct phases: layered, basic and sharp screening. But how good they are ? whether they maximize efficiency and improve the potential for success ? depends on having the right screen media on the deck for each of the three phases. A relatively new method for achieving that goal is a blended screen media approach that incorporates the ideal screen media for each phase and the ideal mix of media for the process overall. The goal in implementing a blended solution is to find the optimal combination of open area and durability. If this combination is found, maximum product quality and profits will be realized by increasing efficiency of classification while minimizing downtime and maintenance costs.

Jan 1, 2012

By C. R. Tinsley

In maybe the world's first in a mine project financing, a US $55 million Rehabilitation Indemnity was given on behalf of the banks in a US $250 million loan to develop the Ranger uranium mine, Northern Territory, Australia. The basis of the financing was an estimate of removal of the tailings and replacement into the pit. The Indemnity was amortized by a sinking fund from the mine's revenues. Such a concept could be valuable for mineral developments in sensitive areas or jurisdictions such as British Columbia or Alaska.

Jan 1, 1992

By Jon C. Yingling

Lean manufacturing, pioneered by Toyota, has been credited with the most significant improvements in production efficiency and product quality since the transformation from craft manufacturing to mass production in the early 20th century. It represents a comprehensive philosophy for structuring, operation, control, and management of production systems that is believed to have wide applicability. This paper outlines major lean manufacturing principles and discusses their potential for application in the mining industry.

Jan 1, 1999

By G. W. Luxbacher

With the advent of acid rain legislation included within the Clean Air Act Amendments of 1990, a great deal of uncertainty with regard to price, source and production quantities has been cast into the coal market. Powder River Basin and other western coals continue a rapidly accelerating migration eastward, South American coals move into the northern markets, states propose legislation to assist utilities in complying with the new regulations in hopes of maintaining their own coal industries, while some utilities question the long term availability of eastern compliance coal. Any major coal producer must make decisions now to assure their continuing presence in the market place; several companies have adopted a strategy to acquire eastern compliance reserves while others have invested in technology to compete as a low cost producer. This paper discusses some of these options in light of the uncertainties of the market place, from an eastern coal producer?s viewpoint.

Jan 1, 1992

By Fabio Mielli

The mining industry is a multifaceted industry with special characteristics that make efficient and intelligent operations uniquely challenging, and subsequently call for distinctive and tailored solutions. Not only does mining call for processes that are complicated and energy intensive, but complex material movements and an intricate logistical chain add to the industry?s obstacles in achieving sustainability and performance. This article explores three major challenges and the resulting issues currently being faced in the industry, as well as potential solutions to these impediments by use of energy management, automation and control strategies.

Jan 1, 2011

By Peter Werner

Technological advances in mine equipment and milling processes have enabled mining companies to exploit ever lower grades of ore. The result has been larger disturbances, greater volumes of waste, a complex web of infrastructure, and an overall trend towards mega-projects that can extend over several square kilometers. This explosive growth in a mining operation’s disturbance footprint provokes an obvious question: What’s it going to cost to reclaim all of this? At face value, this can be an enormous financial liability for a company, but since the timing of reclamation may be years in the future for many operations, these costs can be heavily discounted thereby limiting the burden on the corporate balance sheet. Nonetheless, mining companies are eager to remove these liabilities as quickly as possible, conversely, regulators want assurance reclamation will, in fact, occur. How might one bridge these competing interests? Navigating the practical and financial requirements of a post-closure landscape requires foresight, judgement and assumptions, however, companies who do not adequately plan for these future expenditures when there is no off-setting income stream will likely face some difficult decisions. Simple risk analysis tools and utilizing the time value of money can help bring some clarity to this end-of-mine life phase.

Feb 1, 2025

By J. T. Crawford

The purpose of this paper is two fold. It will: (1) examine leasing analysis as a project evaluation criterion, and (2) compare the cost of leasing with other methods of financing. The use of leasing has grown extensively in recent years as a method of obtaining equipment. The computer industry has been highly dependent upon leasing from its earliest days to dispurse its equipment to the customer, while airlines and railroads acquire large segments of their aircraft and rolling stock by leasing. Over the last few years the mining industry has leased haulage trucks, bulldozers and other equipment of similar nature.

Jan 1, 1974

By Douglas F. Stevenson

Your committee doesn't assign any easy topics to us speakers. How do you define "successful" in what is essentially a losing game? I am reminded of the fellow who returned from a one-week vacation in Las Vegas, and proudly stated, "I only lost $150." To him, that was "success." I am afraid that workers' compensation is a losing game for employers, too, and success has to be defined in terms of how much or how little is lost. We have no chance of producing a profit for our employer. We will narrow down to some suggestions about conducting a workers' compensation program at the plant level, but first I want to discuss the general legal, social and legislative climate in which your plant program operates. Workers' compensation is a statutory program with its general parameters established by the legislature. These parameters are then amplified by the boards and commissions established to administer workers' compensation. What influences the legislature and the boards and commissions as they establish the framework in which we must function?

Jan 1, 1986

By N. A. Karl, D. R. Wilburn

"This summary of international mineral exploration activities for the year 2016 draws upon information from industry sources, published literature, SNL Metals & Mining (SNL), an offering of S&P Global Market Intelligence (New York, NY), and specialists in the U.S. Geological Survey (USGS) National Minerals Information Center. Three types of information are reported and analyzed in this annual review of international exploration: 1) budgetary statistics expressed in U.S. dollars provided by SNL; 2) regional and site-specific exploration activities that took place in 2016 as compiled by the USGS and 3) regional events and legislation that affected exploration activities including economic, social and political conditions, which were derived from published sources and discussions with USGS and industry specialists. Commodity and regional compilations are presented in this summary. Because multiple sources were used to develop commodity and regional compilations, statistics may vary depending on the source and type of data that are being reported. The SNL data summarize budget estimates for worldwide exploration activities in 2016 for 30 nonfuel mineral commodities and metal alloys, based on company surveys. Surveys focused on precious metals (gold, platinumgroup platinumgroup metals (PGMs) and silver), base metals, (cobalt, copper, lead, molybdenum, nickel, tin and zinc), bulk commodities (bauxite, chromite, iron ore, manganese, phosphate and potash) and other commodities (aluminum, antimony, diamond, graphite, heavy-mineral sands, lithium, niobium, rare-earth elements (REEs), scandium, tantalum, tungsten, uranium, vanadium and yttrium). Information on uranium exploration activities was included in SNL’s survey for the first time in 2007. Data on lithium, niobium, phosphate, potash, REE and tungsten were compiled for the first time in 2010, and scandium, vanadium and yttrium were added in 2014 because of their increased topical significance. Since 1999, companies with exploration budgets of $100,000 and greater were included in the SNL surveys. SNL budget estimates exclude coal, and oil and gas. The 2016 SNL mining company survey compilation was reported by SNL to include an estimated 95 percent of the world’s nonfuel mineral exploration budgets. The 5 percent that was not covered was accounted for by companies that chose not to participate in the SNL survey, private companies that do not publish their budget data and government-funded exploration activities."

Jan 5, 2017

By A. Wang

This paper defines the elements of a basic economic model for decision-making when considering a methane drainage system for an underground coal mine. A drainage system will require significant capital and operating expenses; hence the decision to utilize drainage must be made carefully. The model outlines the basic structure of decision-making and considers the costs and benefits when the methane is marketed and when the methane is vented to the atmosphere. The effects on mine safety and the dust levels in the mine are also considered, both in a general format and as economic variables. Sources of information for executing this decision-making are provided for an actual mine decision.

Jan 1, 1997

By R. L. Virta

Ball Clay -- Four companies - H.C. Spinks Clay Co. Inc. (owned by Lhoist Group), Imerys Group (formerly Kentucky-Tennessee Clay Co.), Old Hickory Clay Co. and Unimin Corp. - mined ball clay in four states during 2010. Production, based on preliminary data, was 910 kt (1.11 million st) with an estimated value of $42.9 million. That was a 10-percent increase in tonnage from 831 kt (916 million st) with a value of $37.7 million that was produced in 2009. Tennessee was the leading producer state with 61 percent of domestic production. It was followed by Texas, Mississippi and Kentucky. About 70 percent of production was airfloat, 20 percent was crude and 10 percent was water-slurried.

Jan 1, 2011