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By R. G. Bottge

To better understand those factors which increase mining costs in Alaska, a Bureau of Mines study was conducted to compare the estimated costs of operating a 100,000-tpd open pit copper mine located on a hypothetical ore body in the Lake Clark area, Alaska, with the costs of mining a similarly sized hypothetical copper ore body near Tucson, Ariz. The information derived should be beneficial to the State and Federal governments in appraising the potential for development of large, low-grade porphyry copper deposits in south-central Alaska. Conventional mining and concentrating methods were assumed, and capital and operating costs were derived using flowsheets and standard costing methods. The total price required for copper mined in Alaska and Arizona was $1.12 and $0.63 per pound, respectively, plus or minus 20 percent. These values were obtained assuming no leaching of low-grade copper, recovery of gold, silver, and molybdenum as byproducts, 100-percent equity financing, and a 12 percent discounted cash flow rate of return. The average domestic and international prices for copper in July 1973 were $0.60 and $0.916 per pound, respectively. The existence of a developed transportation and power system in Alaska would have reduced capital and operating costs subs tantially. The required price for copper would have declined from $1.12 to $1.05 per pound, plus or minus 20 percent.

Jan 1, 1974

By M. C. Irani

This Bureau of Mines survey of methane emissions indicates that total daily emissions have declined from 227 MM ft3 in 1971 to 214.7 MM ft3 in 1973. The highest average daily emissions in million cubic feet per day observed in U.S. bituminous coal mines were, in decreasing order, Monongalia County, W. Va., 40.7; Marion County, W. Va., 23.1; Buchanan County, Va., 22.1; Washington County, Pa. , 12.4; Greene County, Pa. , 11.7; McDowell County, W. Va. , 11.4; Cambria County, Pa., 9.8; Jefferson County, Ala., 9.5; Wyoming County, W. Va., 6.0; Marshall County, W. Va., 4.8; and Indiana County, Pa., 4.8.

Jan 1, 1974

By John Paul Gries

This Bureau of Mines report reviews the mineral industry of the Black Hills area, including Butte, Custer, Fall River, Lawrence, Meade, and Penning- ton Counties, S. Dak.; and Crook, Niobrara, and Weston Counties, Wyo. It includes discussion of geological occurrence, processing, and potential of 27 commodities that have been produced from the nine-county area. The value of mineral production exceeds $70 million annually. Gold and petroleum account for two-thirds of the total, followed by clays, cement, sand and gravel, and rock. The combined mineral industries annually consume 268 million kilowatts of electrical energy, 933 million Mcf of gas, and 2 million barrels of fuel oil. Water consumption is about 10,000 gallons per minute. About 2,700 persons are employed on a year-round or significant part-time basis.

Jan 1, 1974

A symposium was held on January 30 and 31, 1973, at Pittsburgh, Pa., to review the state-of-the-art in designing and utilizing diesel-powered equipment in underground mining. The Health and Safety Activity of the Bureau of Mines sponsored the symposium with major assistance from the following four participating organizations: The American Mining Congress J. Allen Overton, President The United Mine Workers of America Arnold R. Miller, President The National Independent Coal Operator's Association Cloyd D. McDowell, President The Bituminous Coal Operators' Association, Inc. Guy Farmer, President Seventeen papers were presented during four half-day sessions devoted to the general subjects of the diesel engine, the place of the diesel in underground mining, health protection using diesels underground, and maintaining safety of diesels underground. Eleven of the speakers were from industrial organizations here and abroad; one represented the Provincial Government of Nova Scotia; two were with the Department of Health, Education, and Welfare; and three reported on Bureau of Mines work related to diesels.

Jan 1, 1975

The Florida phosphate industry, which supplies about three-quarters of the domestic phosphate fertilizer, produces tremendous volumes of phosphatic clay wastes (slimes). These clays retain a high percentage of water for extended periods of time. The clays also pose an environmental hazard because the disposal technique involves aboveground storage behind earthen dams. Although much research has been undertaken by numerous organizations to dewater slime, no completely satisfactory solution has been developed. In June 1972, a cooperative effort by the Federal Bureau of Mines and the Florida phosphate mining industry was initiated to develop a solution for dewatering the Florida phosphatic slimes. This report discusses various aspects of the slimes problem, reviews past research, makes recommendations for future research, and includes a bibliography of references and patents dealing with the subject.

Jan 1, 1975

By Robert G. Bottge

Hard rock mining has grown in importance in the Yukon Territory during the last 10 years while Alaskan hard rock mining has declined. One asbestos deposit in Alaska is dormant, but an asbestos deposit 55 miles to the east in the Yukon Territory is being mined by the Clinton Mine Div., Cassiar Asbestos Corp., Ltd. In this Bureau of Mines report, the economics of mining in the two locations were derived using the Clinton mine as a model. Both deposits were assumed to be of equal size and mined by similar methods. Conventional open pit mining and processing methods were assumed, and capital and operating costs were derived using flowsheets and standard costing methods. The estimated cost for the mine, mill, and support facilities in Alaska was about 30 percent more expensive than that in the Yukon Territory. The higher labor rates in Alaska were the primary contributor to the higher construction costs; freight rates added only slightly to the total costs. Approximately two-thirds of the additional annual costs of operating in Alaska were for wages and fringe benefits. The price required for the Alaskan asbestos fiber was $356.65 per ton compared with $287.44 for Yukon fiber, plus or minus 20 percent. A 12 percent discounted cash flow rate of return, 100 percent equity financing, and a rapid writeoff of assets were assumed.

Jan 1, 1975

By Sidney Katell

This study estimates capital investment, operating costs, and selling prices for four underground bituminous mines producing coal with annual production ranging from 1.06 to 4.99 million tons. It is assumed that the mines have a 20-year life. Wages and union welfare payments are considered as of December 6, 1974, under the Bituminous Wage Agreement of 1974, and costs for material and equipment are based on 1975 indexes. Initial capital investment ranges from $23,629,500 for the 1; 06- million-ton-per-year (MM tpy) mine to $79,907,500 for the 4.99-MM-tpy mine. Total capital investment ranges from $35,336,500 to $1 18,863,500 for the same mines. Corresponding selling prices for the coal range from $13.57 to $11.36 per ton, assuming a 15-percent discounted cash flow rate of return after Federal income taxes.

Jan 1, 1975

By Sidney Katell

This Bureau of Mines study estimates capital investment, operating costs, and selling prices for three underground bituminous mines producing coal with annual production ranging from 1.03 to 3.09 million tons. It is assumed that the mines have a 20-year life. Wages and union welfare payments are considered as of December 6, 1974, under the Bituminous Wage Agreement of 1974, and costs for material and equipment are based on 1975 indexes Initial capital investment ranges from $26,498,500 for the 1.03- million-ton-per-year (MM tpy) mine to $67,173,300 for the 3.09-MM-tpy mine. Total capital investment ranges from $37,437,500 to $92,984,300 for the same mines. Corresponding selling prices for the coal range from $14.83 to $13.26 per ton, assuming a 15-percent discounted cash flow rate of return after Federal income taxes.

Jan 1, 1975

By T. C. Campbell

This Bureau of Mines publication presents an analysis of information related to the transportation of bituminous coal by unit trains and slurry pipelines. Even for short hauls from mines to markets, transport costs frequently account for between one-third and one-half of the delivered price of coal. Minimizing these costs has become an even more critical objective for hauls from the western mines than for hauls from farther east. Factors related to minimizing costs and transporting the western coal receive special attention. Although no general rule of preference is likely to be developed that can be applied to all shipments, both rail and pipeline service will be needed on an increasing scale. The study should provide useful background information and analysis for government and industry in approaching investment decisions in the mining and transportation industries.

Jan 1, 1975

By John J. Henn

An economic evaluation was made of the Bureau of Mines incinerator residue separation process to update the one published in 1971 to a mid-1.974 cost basis. This evaluation includes a modification of the glass-recovery operation used In the original plant design as well as a unit to bale the ferrous scrap product before shipment. Products from the plant are ferrous metal, aluminum and copper-zinc scrap, and a mixed-color glass cullet. The estimated capital and operating costs for four plant sizes are as follows : [ ] The operating costs do not include credits for recovered metals and glass.

Jan 1, 1975

By Jimmie C. Rosenbruch

The Federal Bureau of Mines evaluated the prospects for using geothermal energy to generate electricity for mines in remote areas. Given the development of a geothermal resource for this purpose, the subsidiary uses of space heating and agriculture were then examined to see if other industries might be viable given a cheap source of heat energy. Sites investigated were located in three areas of Alaska: Kobuk in the northwest, Unalaska in the southwest, and Stikine River in the southeast. Each site was relatively close to mineral deposits whose prospects for development would be enhanced with cheap power.

Jan 1, 1975

The papers contained herein summarize results of various recent Bureau of Mines investigations in the area of mine power distribution systems. They are based on information from Bureau personnel, contractors and grantees, and Mining Enforcement and Safety Administration. Conclusions drawn from a series of parameter measurements on mine power systems, taken over a 3-year span, are presented. Personnel and equipment hazards due to faults on isolated, solidly grounded, and resistance grounded three-phase systems are discussed. Two papers cover dc applications of circuit breakers, including a novel protection scheme for trolley lines. The methods of suppressing induced arcing currents and voltages in a-c machines are evaluated. An evaluation program for ground monitors is described. Acceptance test procedures and the importance of various paparameters for trailing cable splice are covered. A number of techniques for locating faults in trailing cables are described.

Jan 1, 1975

By Thomas A. Phillips

The Bureau of dines present, an economic evaluation of its process for the ferric chloride leaching of chalcopyrite concentrate. In this process, chalcopyrite concentrate is leached with ferric chloride solution to extract copper, which is precipitated from the solution by electrolysis while leaving sulfur in the residue. Spent liquor from electrolysis is treated with oxygen to regenerate the ferric chloride leach solution and the sulfur-laden residue is processed to recover the sulfur. A cost estimate was prepared for a plant capable of processing 600 tons of chalcopyrite concentrate per day, 330 days per year. The fixed capital cost, on an early 1.975 basis is $27,831,600 and the estimated operating cost is 9.9 cents, per pound of copper product. In comparison, the estimated operating cost of a smelter equipped with a citrate process plant to recover sulfur is about 13.6 cents per pound of copper product. No charge for chalcopyrite concentrate or credit for recovered byproducts has been included in either operating cost. The ferric chloride leach process, therefore, appears to be economically attractive.

Jan 1, 1976

By T. T. Tomimatsu

This? Bureau of Mines paper discusses the corporate structure dynamics, methods of financing, and financial assessment approaches that should be utilized to evaluate the economic health of the coal industry. It suggests rates of return and other measures of corporate economies necessary to attract capital required to finance emerging coal demand, plus impact of coal sales to total revenues. The study illuminates the activities of 30 selected coal-producing companies, including their subsidiaries or affiliates, that were responsible for approximately 60 percent of the total U.S. production in 1974. The selected firms are not all primary coal producers; many of the larger producer's are classified by the financial institutions as petroleum, metal, and steel producers, public utilities, or chemical industries. The bituminous coal industry is highly competitive as to price, service, and quality of pronuct and is subject to competition from other noncoal energy sources. The top 15 bituminous coal-producing companies mined about 46.6 per-cent of the Nation's total production in 1974, and the balance of approximately 3,885 companies were responsible for the rest of the production. Thus, the U.S. bituminous coal industry is not an oligopoly. Today, about 65 percent of the Nation's total coal production is consumed by electric power utilities and 26 percent by steel, space heating, and other industries; the balance of 9 percent is exported.

Jan 1, 1976

Research personnel from the Bureau of Mines, representatives of the Mining Enforcement and Safety Administration (MESA), and members of the mining industry met with other Government and Industry representatives at three seminars held in Pittsburgh, Pa., November 4, 1975; St. Louis, Mo., November 6, 1975; and Denver, Colo., November L1, 1975, to discuss the results of Bureau-sponsored research on coal mine illumination. The program, aimed at developing suitable illumination systems fur the working; places of underground coal mines, covered hardware development and field evaluation and the status of proposed MESA standards and proposed MESA enforcement procedures. These proceedings contain the opening remarks to the seminars and eight technical presentations an various aspects of coal mine illumination.

Jan 1, 1976

By Charles N. Speltz

Coal resource data from public and private sources, in conjunction with previously published data, were used by the Bureau of Mines to determine the location and extent of strippable coal resources in Colorado. Total strippable resources of approximately 18 billion tons were estimated in 12 separate coal regions, fields, or deposits. Coal recoverable by contour mining techniques was not included. Criteria used in defining strippable resources were a minimum coalbed thickness of 2 feet and a maximum overburden thickness of 150 feet, except where the coalbeds are of exceptional thickness. Ail Colorado coal is either Cretaceous or Tertiary in age. Cretaceous coals occui In the Dakota Sandstone, the Mesaverde Group, and equivalent formations while Tertiary coals occur in the Dawson Arkose, the Fort Union and the Wasatch Formations, and equivalent formations. The strippable coal ranges in rank from bituminous in the Yampa region to ligniferous in the Denver basin. Ali this coal is low in sulfur content (less than 1 percent); ash content is low to high; heating value ranges from 3,000 to 12,000 Btu's per pound. Ash from the lignite of the Denver basin was found to contain an abnormally high percentage of kaolinite which conceivably could be recoverable as alumina.

Jan 1, 1976

By John R. Duda

The Bureau of Mines is developing estimates of capital investment, operating cost, and selling price for underground mines producing bituminous coal by various mining methods. This study estimates the required capital investment, operating costs, and selling prices for two hypothetical mines designed to produce 1.5 and 3 million tons per year (MM tpy)3 by using a longwall system in conjunction with a continuous-mining system. The coal properties being mined are assumed capable of sustaining a 20-year product Lon period. Wages and union welfare payments used in this study are those in effect as of December 6, 1975, as set forth under the National Bituminous Coal Wage Agreement of 1974. Costs of materials and equipment are based on January 1976 Indexes. Initial capital investment is $33.8 million for the 1.5-MM-tpy mine and $61 million for the 3-MM-tpy mine. Capital requirements, including deferred investments, were estimated to be $52.5 and $94.2 million, respectively. These figures translate into total capital investments of $34.87 and $31.31 per ton of annual production. Assuming a desired 15-percent discounted cash flow rate of return, with Federal income taxes at 50 percent, the required selling prices would be $12.06 and $10.94 per ton for the 1.5- and 3-MM-tpy mines.

Jan 1, 1976

By Joseph Sabatini

This report, covering the period January through December 1975, contains abstracts of articles concerning all phases of cost engineering and economics for chemicals processing, raining, and other mineral industries. The abstracts are collected from the following sources: 1. Chemical Engineering 2. Chemical Engineering Progress 3. Chemtech 4. Coal Arse 5. Coal Mining and Processing 6. Combustion 7. Drilling 8. Electrical World 9. Engineering and Mining Journal

Jan 1, 1976

By John R. Duda

The Bureau of Mines is developing estimates of capital investment, operating cost, and selling price for underground mines producing bituminous coal by various mining methods. This study estimates the required capital investment, operating costs, and selling prices for two hypothetical mines designed to produce 1.3 and 2.6 million tons per year (MM tpy)3 by using a longwall system in conjunction with a continuous-mining system. The coal properties being mined are assumed capable of sustaining a 20-year production period. Wages and union welfare payments used in this study are those in effect as of December 6, 1975, as set forth under the National Bituminous Coal Wage Agreement of 1974. Costs of materials and equipment are based on January 1976 indexes. Initial capital investment is $34.6 million for the 1.3-MM-tpy mine and $63.5 million for the 2.6-MM-tpy mine. Capital requirements, including deferred investments, were estimated to be $50.8 and $92.2 million, respectively. These figures translate into total capital investments of $38.51 and $34.91 per ton of annual production. Assuming a desired 15-percent discounted cash flow (DCF) rate of return, with Federal income taxes at 50 percent, the required selling prices would be $13.41 and $12.27 per ton for the 1.3- and 2.6 -MM- tpy mines.

Jan 1, 1976

By Thomas A. Phillips

An economic evaluation of the Bureau of Mines process for the separation of raw urban refuse into its metal, mineral, and energy components is presented. The process recovers ferrous metal, mixed nonferrous metals, aluminum, mixed-color glass cullet, and refuse-derived fuel products from raw refuse. Data for this evaluation were obtained from selected runs at the Bureau's pilot plant in Edmonston, Md. A cost estimate was prepared for a plant capable of processing 1,000 tons per day of raw urban refuse operating two shifts, 6 days per week. The fixed capital cost, based on second quarter 1976 equipment costs, is approximately $14.5 million excluding land and shipping containers. The estimated operating cost is approximately $8 per ton of refuse processed. This does not include credit for the products, transportation of the products, a tipping fee, or a dumping fee for wastes produced. No finance charges or taxes are included in the operating costs.

Jan 1, 1977