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By E. H. Boyle

The Bureau of Mines has evaluated the potential availability of silver from 436 mines and deposits in 41 market economy countries (MEC?s) comprising five major economic categories of deposits: predominantly silver deposits and predominantly zinc, lead, copper, and gold deposits. This study evaluated the long-term cost and availability of primary silver production from 53 producing and 13 nonproducing predominantly silver properties in 11 MEC's and estimated the total recoverable silver from 370 properties as a coproduct or byproduct of zinc, lead, copper, or gold production. This study resulted in estimates of a demonstrated resource of 5.99 billion tr oz of recoverable silver as of January 1984. Of this total, 23.5 pet is in the 66 mines and deposits classified as predominantly silver properties. The largest quantity of recoverable silver, 43.9 pct, lies in the 121 properties classified as predominantly zinc, with 26.5 pct in 120 properties classified as predominantly copper, 4.1 pet in 21 predominantly lead properties, and 2.0 pct in 108 predominantly gold properties. At current silver prices, the economics of silver production favor silver that is a byproduct or coproduct of zinc, lead, copper, or gold, and much of the silver production in the United States from the predominantly silver mines is at an economic disadvantage in comparison with silver production in other countries.

Jan 1, 1986

By Bowra N

Working capital is best described as money that must be supplied from a company's treasury to buy inventories for raw materials and finished products and to provide credit to customers who have not yet paid for delivered products. Working Capital requirements for resource projects are to a large extent, dependent on specific characteristics of the projects concerned. Important variables are the nature of the project and speed with which sales can be realised. The project's location is also important as this will influence inventory levels. Working capital requirements have a time profile, the present value of which can represent a significant portion of a projects overall capital needs. A significant component of a project's working capital is not readily recoverable or able to be reassigned should the project fail or be deferred.

Jan 1, 1986

This information circular describes research the Bureau of fines has conducted to improve technology for recovering precious metals from low-grade resources. Many of the reported findings are recent, and some of the work described is ongoing. Topics discussed include cyanidation of carbonaceous gold ores to enhance gold recovery, a new method for precipitating mercury during cyanide leaching of gold ores, a staged heap leaching process to generate suitable solutions for direct electrowinning of gold, the use of anion-exchange resins to recover gold from cyanide solutions, and precious metals recovery from electronic scrap.

Jan 1, 1986

By Robert H. Peters

The objective of the project descibed in this report was to design and field test a model health and safety program at a coal mining company and a gold mining company. The model program was implemented primarily by providing training on loss control, accident investigation, and the operation of mobile equipment; and by providing technical assistance to help solve health and safety problems. Data were obtained from company records on occupational injuries, illnesses, accidents, and "near misses"; and through direct observation of employees performing a large number of randomly selected jobs. At the coal mine, employees were observed five times over a 15-month period. At the gold mine, employees were observed six times over a 16-month period. During the study, the percentage of sampled jobs containing one or more safety deficiencies decreased from 74.3 pct to 36.6 pct at the coal mine and from 86.4 pct to 19.1 pct at the gold mine. Work on this project was performed by Woodward Associates, Inc., under a Bureau of Mines contract.

Jan 1, 1986

In September 1985, the Chairman of the Transportation, Aviation and Materials Subcommittee of the House of Representatives requested that the Director of the Bureau of Mines address the issue of South Africa and critical materials dependency in testimony before the Subcommittee. Subsequent to the testimony, the Bureau has prepared a technical report focusing on the importance of South Africa and, in some cases, its neighboring countries as suppliers of six key materials. The report includes a qualitative analysis which examines the supply shortfall resulting from a potential disruption, options that are available for mitigating the impact, and their likely effectiveness, and quantitative analyses which estimate the economic impacts in the chromium and manganese markets resulting from peacetime disruption scenarios specified by the Subcommittee Chairman. The concluding section treats the role and capabilities of the Bureau of Mines in dealing with mineral supply disruptions.

Jan 1, 1986

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 R. D. Smith

The Bureau of Mines (BOM) evaluated the technology, capital investment, and annual operating costs of emission control for further reductions of lead in ambient air at the East Helena, Montana, smelter, and the Glover, Herculaneum, and Buick smelter-refineries in Missouri. This study seeks to analyze the technology available to the domestic primary lead industry for attempting to further reduce lead emissions below 1985 levels. Through enclosure of concentrate unloading and handling areas and all lead-processing buildings, followed by venting these enclosures to the atmosphere through baghouses and the application of appropriate local controls, emissions can theoretically be reduced by a total of 2,424 pounds of lead per day from 1985 levels at the three Missouri operations. Using conventional technology, aggregated additional capital costs of $250,014,000 and annual operating costs of $18,507,800 are estimated for the four operations, resulting in a total cost of $0.063 per pound of refined lead. Continuous drossing techniques would assist in meeting OSHA standards in process areas. Continuous drossing would change capital and operating costs to $258,344,800 and $16,104,700, respectively, for a total cost of $0.062 per pound of refined lead. First quarter, 1986 open market price for refined lead was $0.184 per pound.

Jan 1, 1986

By L. A. Eros

The U.S. Bureau of Mines and Western Fuels Utah, Inc. entered into an agreement to plan, install, and evaluate a micro-computer based monitoring and control system at Deserado Mine, an underground coal mine. The U.S. Bureau of Hines contracted the Colorado School of Mines (CSN) to independently evaluate the project. CSM evaluated and documented costs, benefits, problems, and management and labor perceptions in this report. Recommendations are provided for mine operators and monitoring system vendors considering future installations.

Jan 1, 1986

The value of domestic raw nonfuel mineral output in 1985 was estimated at $23.7 billion, 2% above the 1984 value of $23.1 billion. This crude mineral output was the basis for approximately $244 billion worth of processed materials of mineral origin. [ ] A U.S. company permanently closed its alumina plant in St. Croix, U.S. Virgin Islands, reducing domestic alumina capacity by 10%. Another U.S. company sold its 26% interest in an alumina plant in Jamaica to its two U.S. partners. On completion of the purchase agreement, the two remaining partners promptly closed the plant for an indefinite period, citing a world oversupply of alumina and unacceptably low prices.

Jan 1, 1986

This briefing was sponsored by the Bureau of Mines to summarize ongoing and recently completed chromium-chromite research and resource assessment activities by the Bureau. Through the series of 18 presentations compiled herein, Bureau personnel covered a wide range of topics including U.S. chromite and chromium trends and usage patterns; foreign and domestic resources; and research activities on mineral characterization and beneficiation, chemical and pryometallurgical processing of chromite and chromium-bearing wastes, new low-chromium alloy and coating substitutes, corrosion- and oxidation-resistant stainless steels, and chromium-containing refractories.

Jan 1, 1986

By Maurice Deul

This bulletin summarizes the work conducted under the Bureau of Mines methane control research program during the years 1964 to 1979. This research effort was directed toward improving existing methods and developing alternative methods of reducing the explosion hazard during mining. The research was performed in three general areas: (1) basic factors that control the emission of methane into coal mines, (2) methane control during mining, and (3) methane drainage in advance of mining. Topics discussed in this bulletin include the magnitude of the methane problem; the equipment and instruments developed; the geological, chemical and physical parameters that control the movement of methane in coalbeds; the direct method of determining gas content; the estimates of gas content from adsorption data; and methane drainage, through shafts, through horizontal boreholes, through vertical boreholes, or through slant holes. Improvements in ventilation, control of methane in gob areas, and water infusion are also discussed, as is the potential use of coalbed methane as a supplement to natural gas supplies. This bulletin provides a comprehensive source of information on the accomplishments of the Bureau's methane control research program, on the technology developed, and on the direction of further research.

Jan 1, 1986

By R. J. Fantel

The Bureau of Mines investigated the resource availability of titanium minerals from 63 mines and deposits in 12 market economy countries. These mines and deposits contain, at the demonstrated resource level, an estimated 438 million metric tons (mt) of titanium dioxide (TiO2) in the minerals rutile, ilmenite, leucoxene, and anatase. An additional 314 million mt of TiOz is available from inferred resources. If all titanium minerals and other recovered heavy minerals are sold at total costs at least equal to the January 1984 market prices, approximately 200 million mt of contained TiO2 could be recovered in total. In terms of mineral concentrates, this equals approximately 11 million mt of rutile concentrate, 187 million mt of ilmenite concentrate, 3 million mt of leucoxene concentrate, 13 million mt of synthetic rutile concentrate (in addition to the ilmenite), and 89 million mt of titanium slag. The study indicates that world resources of low-cost rutile are declining. In order to maintain future supply for high-grade titanium resources, alternate sources will need to be developed, which may include higher cost rutile mines, Brazilian anatase deposits, increased production from slag operations, or more synthetic rutile capacity from ilmenite resources, which are abundant.

Jan 1, 1986

By Louis Schaffer

The purposes of the research were to assess the applicability of new accident investigation methods to mining accidents, and to adapt those found to be applicable in the development of a new methodology for use in mining. The development included field testing, evaluation and modification of the new methodology. The report is in two volumes. This, volume one, discusses primarily the Phase I work: background research, design of a methodology for field evaluation, and preliminary field tests in Utah mines. Phase I was completed in June, 1980. Also discussed are some activities to prepare for a field evaluation during the period May 1980 -October 1981. Volume 2 discusses the subsequent field tests, modifications of the initial methodology and the results of use of the methodology in two mining companies for a period of approximately eighteen months, and in other companies for selected loss incidents during that period.

Jan 1, 1986

This report presents the results of a study for the Bureau of Mines to compare loan terms for non-fuel mineral projects in developing countries, from various International Financial Institutions (IFIs), and from private sector commercial sources. The study compares IFI and commercial loan terms for seven mineral projects in developing countries. The International Financial Institutions represented are: ? International Bank for Reconstruction and Development (World Bank) ? International Finance Corporation (IFC) ? Inter-American Development Bank (IDB) ? Asian Development Bank (ADB) ? International Monetary Fund (IMF) In addition, the costs of financing for these mineral projects were compared with the costs of long-term debt to the five largest U.S. mineral producers.

Jan 1, 1986

By W. J. S. Craigen, G. E. Wittur

"In the context of today's continuously changing world, there are many factors which must be considered when attempting to assess the ability of Canada's primary copper producers to remain competitive in the face of increasing competition in world markets. In this paper, we have attempted to document those factors that will have the greatest impact on the future viability of Canada's copper industry, and to suggest possible strategies to fully utilize whatever inherent advantages Canada may have to enhance its competitive position. Technological factors related to the efficiency of precious and by-product metals recovery, energy type and utilization efficiency, production and sale of sulphur by-products, and control of 502 emissions are given high priority in this evaluation of Canada's future needs to remain competitive. Particular emphasis is placed on assessing the relative viability of hydrometallurgical versus pyrometallurgical processes for copper; to address uniquely Canadian conditions and problems. Due consideration is also given to the economic incentives required to allow Canada's copper producers to compete under anticipated world market conditions and to facilitate the continued development of Canada's copper resources. IntroductionWhen we try to assess the viability or competitiveness of any industry the bottom line is still usually, ""Can we produce a pound of product cheaper than the competition?"" Canada's copper industry is certainly no exception. However, as with most resource-based industries dependent upon exports, there are many factors which have a significant effect on the cost components which make up the total cost of producing and selling a pound of copper. It is desirable therefore to have as clear a picture as possible of the cost components, the major factors affecting them, and how they compare with the competition, particularly the third-world copper producers.In this paper we have attempted to provide a brief outlook for world copper markets and a brief overview of Canada's competitive position. We have also attempted to document those factors which will have the greatest impact on future production costs, and have suggested possible initiatives to utilize inherent Canadian advantages to enhance our competitive position. Special emphasis has been placed on technological initiatives designed to make full use of these ""advantages"", to develop superior beneficiation and extraction! refining technologies. Major factors considered in the present study are:"

Jan 1, 1986

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 James S. Graham

Research at the University of Colorado on southern pine and Douglas-fir piling has determined that the existing building code design stress values of 1200 psi and 1250 psi, as determined by ASTM D-2899, are substantiated; but testing procedures should be revised. All full size piling tests should be standardized at 1/d ratios of 2:1, or confined tests performed. Also, it has been determined that theoretical design values for timber piling should not be based on the lumber criteria of D-245 and D-2555, but instead should follow the pattern set by engineers in the utility industry for timber poles, in accordance with ANSI 05.1.

Jan 1, 1986

By Alexander Sutulov

1. INTRODUCTION According to the classical economic approach of the open market economy, copper supply should be regulated by market forces which are (a) demand and (b) prices. In fact, demand is of primordial importance because prices are a reflection of supply-demand balance: they go up in times of shortages of supply and down when over-supply situation exists. In the past few years, this basic mechanism of market economy has been under pressure from a number of non-market forces, such as social and monetary problems of sane important copper producing countries; structural changes in copper mining companies through mergers with oil companies; and other factors which greatly contributed to distortion of the basic supply-¬demand equation. As a result, we have faced in the last three years a situation of oversupply rarely seen in the past, with a catastrophic fall in copper prices, huge losses at mines and unprecedented indebtedness of copper producers. This has deep repercussions in the copper business and its future supply outlook. This is particularly so when taking into consideration that high indebtedness and high interest rates conspire against the very survival of some traditional producers. As we write this comment (July of 1985), close to one half of U.S. copper production capacity is closed down, sane of it for good, while the same precarious situation exists in Canada, Australia, Zambia, and some other primary producers who cannot face present low prices with equally low costs. The question is then what this situation means for the medium-¬term future, until the end of this decade, Particularly when taking into consideration the fact that some of the factors influencing it are of a long-term character. 2. SUPPLY-DEMAND SITUATION IN THE LAST FIVE YEARS Since the last boon year, in 1979, when world copper consumption reached a record of 9.8 million metric tons of refined copper, demand dropped to only 9.0 million tons in 1982, when the crisis bottomed out, and then steadily recovered to the level of 9.7 million tons in 1984. Meanwhile, copper production, which in 1979 was only 9.4 million tons, in spite of the fall in demand, grew to 9.7 million tons in 1981 and 1983 and only temporarily was cut to 9.4 million tons in 1982 and to 9.5 million tons in 1984. As a result of this imbalance, hugh copper stocks were accumulated with supply systematically out¬growing demand by over 2 million tons at one time. With the Western World refined copper demand running at an average of 115,000 tons per week, this oversupply was equivalent to between 15 and 18 weeks production, i.e. twice as large as normal. This was immediately reflected in very low copper prices. Another contributing factor to relatively low copper prices was the lack of speculator interest for this commodity. Between 1981 and 1984 the world experienced a very intensive period of wealth distribution, high interest rates and intensive restructuring off world economy and its industrial sector. Therefore, much of the available money was attracted to more lucrative and attractive investments rather than to the lack-luster performance of copper, and for that matter, of the metal sector in general. The much announced and discussed recovery of the U.S. economy since 1983, and particularly in 1984, with an overall growth of the GNP by 6.8% in 1984, happened to be more oriented to the service sector than the industrial sector and therefore this recovery was not adequately reflected in copper consumption nor to metals in general. This put serious doubts about the future demand for copper. Consequently copper prices failed to improve in spite of an apparent fall in stocks and a healthy increase in the demand for copper since 1982. At the time of this writing (July, 1985), although same analysts claim that the available stocks are running at about 8 weeks of supply, which are considered to be below normal, copper prices are still very low at between 65 and 67 cents per pound of copper. Part of the answer may be the normal seasonal slow-down period in the Northern Hemisphere due to summer vacations and

Jan 1, 1986

Responsibility for the administration of mineral resources is divided between federal and provincial governments. The paper traces the evolution of mineral policies at both levels of government, from the end of World War II to the present. In the immediate post-World War II years, the emphasis was on supplying the raw material needs of a rapidly growing world economy. Policies favouring growth and development of the Canadian mining industry were instituted during this period. Two decades of uninterrupted expansion (the 1950s and 1960s) ensued. The decade of the 1970s was a turbulent one for Canadian mineral producers. Governments intervened more substantially than ever before. Moreover, the industry suffered from an intense period of competition for resource revenues by the two levels of government. At the same time, far reaching changes were taking place in the structure of world mineral markets. To date in the 1980s, the mineral industry has, perforce, adapted to existing mineral market structures. Mineral policies, too, have shown signs of adapting to the needs of the mineral industry. Whether the resulting mix of policies will permit the revitalization of the Canadian mining sector remains to be seen.

Jan 1, 1986

By Michel L. Bilodeau, Brian W. Mackenzie, Dallas W. Davis

"The paper formulates an evaluation procedure for examining the effects of location on the economics of developing mineral deposits. This methodology is applied to assess locational aspects of Nova Scotia's competitive position f or mine development relative to other Canadian regions and provinces. The appraisal concerns two representative mine development opportunities, a medium-size open-pit tungsten deposit, and a small underground gold deposit. The influence of regional economic conditions is initially assessed. Then, the consequences of taxation are isolated. Finally, the combined impact of regional and taxation conditions is examined. SettingThe economic potential of mining may be assessed in a number of ways. One approach, increasingly used for both corporate planning and government policy purposes, is to evaluate the competitive position of an actual or potential mineral producer in the international marketplace relative to other suppliers.Such examinations of competitive position vary from cost league comparisons of breakeven costs for operating mines, through the assessment of medium-term costs associated with developing new mine capacity, to long-term evaluations of the economics of mineral supply from the start of exploration. The complexity of the analysis increase s with the scope and timeframe of interest. Many factors are involved. One component of competitive position is the quality of the mineral resources available. Other key factors include existing technology, wage and salary rates, labour productivity, the cost of capital, infra structure requirements, distances from sources of materials supply an d to mineral markets, management attributes, organizational efficiency, government mineral policies (particularly taxation), and inflation and exchange rates. The paper fits within this competitive position framework.The variable economic conditions which exist within Canada have a direct bearing on the viability of mine development and, thereby, on mineral exploration potential. The paper examines locational aspects of Nova Scotia 's competitive position."

Jan 1, 1986