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Jan 1, 1989

By J. H. Mackey

"Where can I obtain a reclamation bond today?" "Who is writing your bonds?" These questions are common and heard frequently. The fact that the Society of Mining Engineers has determined that two of the five environmental topics reviewed at the 1989 Annual Meeting relate to reclamation bonding indicates to me that those who are involved in the coal industry, no matter what capacity, remain very cognizant of the reclamation bonding dilemma.

Jan 1, 1989

Unnamed early prospectors panned gold from creeks drain- ing the Great Dividing Range in the early part of 1851. The first publicised discovery was credited to Edward Hargraves near Bathurst in New South Wales later in 1851 and during the ensu- ing gold rush, prospectors rapidly made discoveries elsewhere in New South Wales and later across the border in Victoria. Reference to the attached graphs of gold production indicates that for much of the first 100 years, gold production came from the easily worked and readily discovered shallow alluvial deposits, many of which were located in the creeks draining mountainous regions of Victoria, New South Wales and Queensland (Fig. 1 and 2). As these deposits were exhausted, prospectors turned their attention to outcrop lode deposits which led to the development of underground mining techniques and a significant boost in over- all gold production. With the discovery of the rich Golden Mile lodes in Kalgoorlie in 1893, gold production increased signifi- cantly and peaked around the turn of the century. At that time, the enormous potential of the great Witwatersrand deposits in South Africa had only just been appreciated and for a few years, Australia led the world in gold production (1855-1863 and again in 1903). Underground mining continued in the Eastern Goldfields area of Western Australia, the Bendigo-Ballarat region of Victoria and in northeast Queensland. Very few of these operations continued beyond the Second World War, except the larger producers in the Kalgoorlie region where recovered grade had dropped to about 6 g/t Au. By the early 1970s with the gold price fixed at US$35 per ounce, most of the operations were shut down as labour costs escalated, with only the low cost bulk mining operation at Mt. Charlotte and the high grade reefs at Norseman continuing in Production.

Jan 1, 1988

By Joan Weinberg

Real output expanded at a 3.0% rate worldwide in 1987, a slightly lower pace than the 3.2% rate in 1986. The decline was accounted for largely by slower growth in the U.S.S.R. and the East European countries, as well as in the developing countries (table 1). According to the International Monetary Fund, output of industrial countries output grew 3.1% and rose most strongly in Japan, the United Kingdom, and Canada (table 2). U.S. economic growth remained at 2.9%, the same as in 1986. Consumer and government spending declined in industrial countries, while gross fixed investment: rent increased. This increase in fixed investment expenditures could be attributed partly to lagged results of some 1986 developments: the fall in oil prices, declining interest rates, and exchange rate changes. The U.S. budget deficit, as well as the large external deficits and surpluses among major industrial countries, hindered further growth .2 A report from the Organization for Economic Cooperation and Development (OECD) indicates that the impact of the October stock market crash was short-lived because it hit economies that were growing strongly, anyway.3 The growth of output in the developing countries slowed in 1987; however, output declined in the fuel-exporting developing countries. These countries have been adversely affected by weakness in oil prices and the depreciation of the U.S. dollar. The weighted average of inflation rates in industrial countries--as measured by the [ ] GNP deflator, was 2.9% in 1987, down from 3.4% in 1986. Prices rose 3.0% in the United States, up from 2.6% the previous year. Inflation for 1988 is expected to remain slightly higher in the United States than in Japan and the Federal Republic of Germany because of recent exchange rates changes and the elimination of slack productive capacity and labor in the U.S. economy. Prices in developing countries as a whole rose more than 10 percentage points in 1987. Higher import prices, caused by

Jan 1, 1988

"The theoretical basis of ideal smelting reduction using coal as reductant in a process employing closed loop forced-circulation of hot metal is outlined. In the proposed process, an extensive area of relatively slag-free hot metal is available as a heat sink for absorbing the large amount of heat produced by complete combustion of CO within the furnace. Any slag that is formed within the oxidizing arm of the furnace loop is quickly swept away as a thin floating layer by the bulk movement of hot metal which is induced positively by forced melt circulation and sustained by causing the hot metal and the thin slag layer to overflow into a lower level hearth in which coal is carbonised and dissolved directly into the circulating melt.The proposed process is shown to offer very substantial cost savings over all other direct smelting technology. This is mainly because of its inherently low capital cost and its high energy efficiency. Furthermore, the favourable economics are not reliant on fuel gas credits as all the process gas is combusted within the reactor itself.IntroductionMetallurgical processes in the year 2000 will be compromise solutions to the metallurgical problems that already exist today. It is common knowledge that the mineralogical complexity of certain polymetallic sulphides, for example, precludes high degrees of separation and recovery by conventional mineral beneficiation. steps are therefore being taken towards the development of a truly polymetallic smelting process which will produce simultaneously zinc lead and copper as, metals from complex ores without prior beneficiation(l). In the ferrous extraction industry, the shortcomings of the highly efficient modern blast' furnace are well known and world-wide there is considerable effort being directed towards coal-based ironmaking without the requirement of metallurgical coke as a process intermediate. The current status 0f2Joal-based ironmaking has recently been reviewed by Smith and Corbett. (2)"

Jan 1, 1988

By D. C. White

The Vulture Mine near Wickenburg, Arizona was a major gold producer from 1863 to 1942, having yielded about 11,000 kg Au and 8,000 kg Ag. Gold occurs as coarse native metal and electrum in quartz veins and also finely disseminated within a quartz monzonite sill and its silicified wall rock. The sill is semi-conformable within a Proterozoic volcaniclastic-dominated sequence all dipping north about 35°. Early mining focused on the vein-hosted gold particularly in the immediate hanging wall and footwall of the sill. Later efforts included some open-pitting of the outcropping sill and adjacent altered and mineralized rock. Two sets of post-mineral faults have complicated the orebody geometry.

Jan 1, 1988

By A. F. Saavedra, N. E. Richards, C. J. McMinn

"The aluminum industry in general and Reynolds Metals Company in particular have continued to support development work for improvement of the Hall cell design and for alternative processes for the reduction of alumina. The evolution of the Hall cell design will continue into the next century as a result of further development of mathematical models, sophisticated control systems and new materials for cell components. This paper discusses the areas in which the new generation cell advances will differ from the present day design. Additionally, Reynolds Metal s has supported work for the development of a carbo thermic process to reduce alumina. Theoretical work has indicated that this process could possibly have economic advantage over the Hall process. Several complicated furnace configurations have been proposed to provide the conditions for successfully reducing alumina. The results of small pilot scale operation and most promising furnace design are discussed. For comparison, projected capital investment costs and operation costs are discussed. IntroductionThe evolution of the Hall-Heroult process will continue into the next century. This evolution will be influenced by economics, more .restrictive environment and worker protection requirements, and technological development. These factors will also cause changes in the competitive position of alternate processes for aluminum production.Several aluminum producers have made major investments in alternate processes for aluminum production in the past three decades and there is continued support in some companies for improvements in the Hall-Heroult process and for alternate processes. The more visible development work in reduction technology, not aimed at significant process changes, is in the areas of higher amperage cells with bus bar designs to reduce harmful magnetic effects, more advanced and automated feed, voltage and electrolyte composition control, improved energy efficiency and sol id waste disposal . Efforts to bring significant change to the reduction process are being made in development of materials that can function as inert anodes and cathodes. These materials could lead to the development of reduction cells with multiple bipolar electrodes operating on oxide feed and fluoride electrolytes. Development work on new processes was reduced in the last decade by several companies because of economic and technological realities. Reynolds Metals supported work on a carbothermic process to reduce alumina and produce commercial pure aluminum. This work progressed through small pilot plant operation, and resulted in development of furnace designs and operation regimes. This paper reviews how this and other technologies could influence the reduction of alumina beyond the year 2000."

Jan 1, 1988

By C. S. Simons

This paper presents a review of the extractive processes used in the production of nickel, with emphasis on developments since the beginning of the Second World War. Attention is given to the factors, many outside the nickel industry itself, which determined the direction of process research and strongly influenced the ultimate commitments to industrialize the resulting developments. An example of such a factor is the sudden surge in demand, far exceeding the then available nickel production capacity, that was caused by the advent of World War II; the result was the first serious consideration ever given to low- grade laterites as a viable source of primary nickel. Other factors discussed include such items as process development in the extraction of other metals - particularly copper; the availability of increasingly sophisticated materials of const- ruction; the advent of the "environmentalist" and related political developments; the massive escalation in the price of energy - particularly oil. The paper concludes with an attempt to forecast the nature of the most effective nickel process of the future, based on extrapolation from the economic and political situation that exists today.

Jan 1, 1988

By P. G. Bennett

The Bureau of Mines developed a process using ion exchange to recover cobalt from spent copper leach solutions. A preliminary economic evaluation of the process indicated that about one-third of the capital cost was attributed to the total resin inventory, and one-third of the operating cost was required for reagents to remove iron from the ion-exchange eluates. An agitated Pachuca elution system was investigated in place of a fixed-bed elution system. The Pachuca system reduced the resin inventory by 27 pet when compared with the fixed-bed elution system. Processing fresh spent copper leach solution reduced the resin inventory by 20 pct and resin iron loading by 80 pct. Reagent requirements for removing iron from the eluates were decreased because less iron was extracted. The Pachuca system, along with processing fresh spent copper leach solution, reduced the total resin inventory by 47 pct. A revised cost evaluation of the cobalt recovery process was obtained to determine the effects of these process modifIcations. The estimated total capital cost for a plant processing 10,000 gpm of spent copper leach solution containing 26 ppm Co was $23.1 million. With credits for nickel, zinc, and copper byproducts, the estimated net operating cost was $5.10/lb of cobalt.

Jan 1, 1988

In the search for significant new economic base-metal resources within Australia during the early 1970s BHP's Exploration Department had observed that the majority of lead and zinc con- centrate production in Europe and the USA came from carbonate- hosted Mississippi-Valley-type (MVT) zinc-lead deposits, but Aus- tralia had no history of production from this class of deposit despite several very favourable geological environments, par- ticularly in the large Palaeozoic sedimentary basins. An exploration-research team was established in 1975 and the Lennard Shelf region, near Fitzroy Crossing, was selected as a most promising geological environment. Previous exploration for this class of deposit by other companies in Australia had largely used conventional exploration philosophies (geological mapping, geophysics and geochemistry to identify specific drill targets) but BHP sought specialist advice from a North American expert and adopted a grid-drilling philosophy, which involved wide spaced relatively deep diamond drill holes on a regular grid pattern, and statistical evaluation of the results. This technique resulted in the discovery of the Blendevale Deposit in 1978 in an area which had previously been explored by other companies using conventional methodologies. The deposit was delineated and a pre-feasibility study carried out in 1985 indicated that the resource of 20 Mt @ 8.3% Zn, 2.5% Pb was a marginal proposition.

Jan 1, 1988

By Robert B. Parsons

"It is generally felt that flow-through shares face a bleak future under the set of tax rules proposed in the federal government's tax reform white paper. Industry and government circles are beginning to give thought to alternatives to flow through as a mechanism for facilitating equity financing in the exploration industry. Despite suggestions that grants and tax credits may someday be on the table, industry is sticking to its position that there is no substitute for flow-through. Alternatives toFlow-throughProposals in the federal government's tax reform white paper have cast significant doubt on the ability of the mining industry to raise risk capital after 1989by way of flow-through shares. There is serious concern that introduction of the ""cumulative net investment loss"" (CNIL) rules, the phase-out of the mining explorati0! 1 depletion allowance (MEDA), and the Increased capital gains inclusion (750/0 versus 50%, at present) will make the economics of flow-through so unattractive after 1989 that these shares will hold little appeal to most investors. The question might be raised, then, as to what alternatives exist by way of tax or other government assistance that could help the exploration sector.The purpose of this paper is to survey the types of government incentives that could be of some value to explorationists and to the mining industry in general. For the past several years, flow-through has been in the spotlight insofar as incentives to the exploration industry are concerned. Other potentially useful and attractive incentives have been partially hidden in the shadow of flow-through. These incentives, in certain circumstances, can be of considerable benefit, and should not be ignored."

Jan 1, 1988

By R. J. Fantel

The Bureau of Mines investigated the resources, costs, capacities, market relationships, and short- and long-run supply of phosphate rock and phosphoric acid. The 206 mines and deposits evaluated in 30 market economy countries contain an estimated 35.1 billion mt of recoverable phosphate rock (demonstrated resource level). U.S. resources are sufficient to satisfy the domestic and export markets for phosphate products well beyond the year 2000. Because of resource depletion at current producers, however, new properties (with higher cost levels) need to be developed if U.S. production levels are to be maintained. Existing worldwide capacity can satisfy expected demand through the early 1990's. Expansion at existing mines or low demand growth could mean that no new property development will be needed before the late 1990's. Worldwide, almost $8 billion could be required for development of new phosphate rock properties between now and the year 2000, given 3-pct annual growth in demand. Most properties that could develop in the 1990's would require price increases of 20 to 50 pct to break even. To earn a 15-pct rate of return on investment, prices must rise to nearly double the present level of $24 to $29 per metric ton.

Jan 1, 1988

This report is a proceedings of a briefing recently sponsored by the Bureau of Mines at which Bureau personnel presented findings from their research efforts to improve steelmaking techology currently used in the United States. The papers contained in this report address many areas of concern to the iron and steelmaking industry. Among these are improving arc stability in electric arc furnaces, preheating ferrous scrap to reduce energy consumption, fluorspar substitutes in steel-making, basic steelmaking refractories, corrosion of iron-based materials, improvements in stainless steel acid pickling processes, recycling of stainless steel dusts and other wastes, and use of wastes as a source of zinc for electro/galvanizing.

Jan 1, 1988

Mine waste and mine reclamation are topics of major interest to the mining industry, the government and the general public. This publication and its companion volume are the proceedings of a conference held in Pittsburgh, April 19-21, 1988. There were nine sessions (50 papers) that dealt with the geochemistry, hydrology and problems of mine waste and mine water, especially acid mine drainage. These comprise Volume 1. The nine sessions (43 papers) that dealt with reclamation and restoration of disturbed lands, as well as related policy issues, are included in volume 2. Volume 2 also contains the ten papers that pertained to control of subsidence and mine fires at abandoned mines. Poster session presentations are, in general, represented by abstracts; these have been placed in the back of both volumes.

Jan 1, 1988

By C. Larsen, R. A. Walker, A. Voth, C. Daoust

"The 3000 t/d mill at Hernia Gold Mines Inc. was commissioned in March, 1985. By Canadian standards the concentrator is highly automated, however, unlike the retrofit systems in many other plants, the Hernia process control system was installed during plant construction. This paper describes the Hernia control system beginning with system development (justification, architecture, start up, etc.), proceeding to current applications (crushing, grinding, leaching, etc.) and finally discusses some of the short term objectives for system improvement.INTRODUCTIONThe Hernia Gold Mines Inc. operation is located in the Marathon area of Northwestern Ontario. Controlled by Noranda Minerals Inc. (50.1 %), the cost of bringing the mine into production was nearly $300 million. A unique feature of the mine development was the extraordinarily short elapsed time of three years from Noranda's initial involvement to the start of milling operations. Additional background information on this project can be found in the trade literature (e.g. Tinter (1986). Scales (1987).)The Hernia concentrator is designed to process 3000 tpd of ore and commenced operation in March, 1985. Figure 1 provides a general plant flowsheet indicating the major circuits. Typical annual production statistics are included on the figure and these have been extrapolated from the available 1987 year-to-date data. Larsen and Tessier (1986) have previously described the operational aspects of the mill.In a metaphorical sense, the Hernia concentrator is like the traditional bride, ""wearing something old (e.g. the cyanide leach process), something new (e.g. a plant wide digital control system installed during construction), something borrowed (e.g. crushers from Gaspe) and something blue (e.g. the cladding on the surface buildings). While the prospect of fully undressing this bride is of considerable interest, here we choose to focus on something new. In particular, we choose to examine the process control system in some detail since Hernia is one of Canada's more highly autcmated gold mills. The control system is of interest because it has received suostantial credit for maximizing metal production and minimizing operating costs. With reference to the latter, it is worthy of note that Hem lo reports recent operating costs of less than $100 U.S./oz."

Jan 1, 1988

By Richard D. Smith

The Bureau of Mines evaluated the emission control methods, including the capital investments and operating cost, necessary for further reducing lead levels in ambient air at the Glover, Herculaneum, and Buick smelter-refineries in Missouri and the East Helena, MT, smelter. The U.S. Environmental Protection Agency (EPA) has proposed more stringent lead in ambient air standards than those currently in effect. This report presents theoretically achievable lead emission reductions and estimated capital and operating costs. Lead emission inventories theoretically can be reduced from 1985 levels by 2,421 lb/d at the three Missouri operations by containing and filtering fugitive emissions within structural enclosures and baghouses. The aggregated capital and operating costs in 1986 dollars using conventional environmental and workplace technologies are estimated to be $250,014,100 and $18,507,800, respectively. Estimated total incremental cost is $0.063/lb as refined lead. Additional regulatory costs attributable to Occupational Safety and Health Administration (OSKA), U.S. Department of Labor, workplace standards are included since proposed environmental controls may otherwise degrade workplace conditions. Continuous drossing is evaluated as an alternative to conventional OSHA controls. Substituting continuous drossing for conventional work- place technology results in an estimated aggregated capital and operating costs of $258,344,800 and $15,719,600, respectively. Estimated total incremental cost is $0.062/1b as refined lead. For comparison, the average open market price of refined lead during the first quarter of 1986 was $0.184/lb.

Jan 1, 1987

By Robert H. Peters

This Bureau of Mines report describes several significant problems associated with absenteeism among underground coal miners. The vast empirical literature on employee absenteeism is reviewed, and a conceptual model of the factors that cause absenteeism among miners is presented. Portions of this model were empirically tested by performing correlational and multiple regression analyses on data collected from a group of 64 underground coal miners. The results of these tests are presented and discussed.

Jan 1, 1987

By Keith L. Harris

Recent data indicate a marginal decline in overall growth in world economic output from 3.1% in 1985 to 2.9% in 1986 (table 1),2, 3 Many nations experienced slower economic growth because of the huge trade imbalances existing between the United [ ] States and Japan and the Federal Republic of Germany, the U.S. budget deficit, and the growing Third World debt. Some developing nations, however, experienced booming growth. Declining prices for energy and nonenergy commodities and the fall of the dollar against the currencies of major industrial countries benefited several developing countries--energy importers and exporters of manufactured goods with currencies tied to the U.S. dollar, which were able to expand markets in the industrialized nations. The drop in commodity prices increased demand in industrial countries and depressed it in developing countries. Lower demand in the developing countries contributed to a decline in the real net exports from industrial countries. As a result, output growth in industrial countries declined from 3.0% in 1985 to 2.4% in 1986, despite growing internal demand, Average output growth of developing countries increased from 3.296 to 3.596 during the same period, however, primarily because of the low prices of their products and the strength of demand in industrial countries for those products. Developed country output growth was extremely uneven, however. For example, the economic output of nonfuel exporters grew 5.4% in 1986, while that of fuel exporters dropped 0.7%.

Jan 1, 1987

Jan 1, 1987

This paper deals with the Australian taxation laws, and in particular the income tax laws, as they apply to mineral exploration and development both in Australia and off-shore. The Australian tax laws are imposed principally at a Commonwealth level. The most important Commonwealth taxes are Income Tax, including Capital Gains Tax, Fringe Benefits Tax, Sales Tax, Customs Duty, Excise Duty and Bank Accounts Debits Tax. The States of Australia impose Stamp Duties and Financial Duties, Payroll Tax and Land Tax. The Australian Income Tax Law including Capital Gains Tax, is the most significant tax in the country. The principal features of the income tax law are as follows: tax is imposed on a taxable income being the assessable income less allowable deductions; a full imputation system of company tax applies; a foreign tax credit system applies to both companies and individuals; capital gains are taxed as income and subject to income tax rates but the gain is inflation adjusted. Australia has negotiated tax treaties with most of its trading partners based on the OECD model; and special tax concessions apply to the mining industry.

Jan 1, 1987