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Real gross national product increased at a larger-than- expected annual rate of 8.3 percent in the first quarter of 1984, with both consumption and investment spending increasing significantly in real terms (table 1). Residential and nonresidential fixed investment increased at annual rates of 25.7 and 14.6 percent during the first quarter of 1984, and investment in nonresidential structures, which declined in 1983, also increased during the first quarter of 1984, nearly attaining its 1982 level. The annual level of personal savings increased $27.7 billion, while the personal savings rate (the ratio of personal savings to disposable income) increased to 5.8 percent during the first quarter. The increase in the personal savings rate comes as welcome news to analysts concerned over the flow of loanable funds to the private sector and the impact on interest rates in 1984 of increased private and Government demands. U.S. Minerals Industry Performance A major upswing in the performance of the metal mining sector occurred during the first quarter of 1984, with production increasing almost 11.2 percent from January to March, The recovery of the metal sector is also reflected in the performance of primary metal industry profits, which were positive during fourth quarter 1983 following seven consecutive quarterly losses (table 1). Two thousand nine hundred more metal mining production workers were employed in February 1984 than in February 1983.

Jan 1, 1984

Jan 1, 1984

By D. A. Buckingham

The Bureau of Mines evaluated potential availability of domestic nickel from 23 deposits, Evaluations included an estimation of in situ and recoverable resources, applicable mining and processing technologies, and capital and operating costs. Discounted cash flow analysis with a 15-pct rate of return was used to determine the average total cost of production of each operation, Identified in situ resources contain 9.0 million metric tons (t) of nickel; 5.5 million t is recoverable as nickel metal or ferronickel. Demonstrated in situ resources contain 8.2 million t of nickel; 4.8 million t is recoverable as nickel metal or ferronickel. No nickel is available at a total cost of production equal to the January 1983 market price of $3.24 per pound. Analyses indicate that potential annual production can only meet current consumption levels at a total cost of production of $7.60 per pound of nickel, Nickel's availability is contingent on (1) successful adaptability of nickel processing methods to domestic resources, (2) location of a smelting facility, and (3) marketability of byproducts and coproducts. Analyses were performed on the effects of byproduct and coproduct revenues, energy, labor, and transportation costs, and metallurgical recoveries on nickel's availability.

Jan 1, 1984

By D. R. Hudson, M. J. Donaldson

"Study of gravity concentrates from the gold-recovery circuit of the Kambalda nickel mill has enabled an assessment to be made of the nature, relative abundance and compositional variability of platinum group element (PGE) minerals and other associated heavy minerals that are present in the Kambalda nickel deposits. The major platinum minerals are sperrylite, PtAs2, and nioncheite, (Pt. Pd, Ni)(Te, Bi)2, and the major palladium minerals are sudburvite, (Pd, Pt, Ni)(Sb, Te, Bi), stibiopalladinite, Pd6Sb2, and palladoarsenide, Pd2 (As, Sb), together with a palladium antimonide and a palladium arsenide that have not been fully characterized. Palladian melonites, which contain up to 10 wt% Pd, and palladian nickeline are also important PGE hosts. Sperrylite and sudburyite are by far the most abundant discrete minerals in the gravity concentrates.Gold occurs as argentian, cuprian and nickeloan—cuprian gold, and as the tellurides calaverite, petzite and auriferous hessite. Silver is present in petzite, hessite and volynskite. Other rare phases contained in the gravity concentrates include native bismuth, altaite, frohbergite, breithauptite, gersdorffite, parkerite, scheelite, tantalite, cassiterite, rutile, bunsenite, gahnite, barite and uvarovite.Descriptions of in-situ occurrences of PGE minerals at Kambalda are rare. Michenerite, PdBiTe, and testibiopalladite, PdSbTe, have been described from a telluride-rich quartz-carbonate vein that intersects massive sulphide ore in Lunnon Shoot. Moncheite has been observed in chalcopyrite-rich stringers, and sudburyite occurs as inclusions in nickeline in a quartz- carbonate veinlet. No discrete PGE minerals have been found within the massive and matrix ore zones in the Kambalda ore- shoots, and the geochemical distribution of PGE suggests that the formation of discrete PGE phases may be related to post- magmatic processes—in particular, metamorphic segregation of sulphides, and the interaction of the ore sulphides, containing PGE in solid solution, with younger hydrothermal fluids. This has led to local redistribution of the PGE, with concentration in footwall stringers and veins, and in reaction zones."

Jan 1, 1984

By D. I. Bleiwas

Bureau of Mines personnel evaluated the potential availability of nickel from 151 deposits in 18 market economy countries and selected 126 for detailed analyses. An evaluation was made of tonnage-cost relationships indicating the quantity of nickel available at various total costs of production expressed in dollars per pound nickel, including a 15-pct rate of return on the invested capital. The 126 deposits studied contain approximately 73 million metric tons (t) of nickel. An estimated 52 million t is available from laterite deposits, of which less than 2 pct could be produced at $3.50/lb Ni, about equal to the average published price of nickel in 1981. Approximately 21 million t of nickel is available from sulfide deposits, of which about 10.0 million t can be produced at $3.50/lb. Sensitivity studies performed for both laterite deposits and sulfide deposits indicate that the total cost of nickel from laterites is most sensitive to increases in energy costs, and that sulfides are most sensitive to increases in labor costs; sulfides are also sensitive to changes in byproduct revenues. In 1983 the Nickel Mountain mine in Oregon was the only U.S. producer, though development continued on the Gasquet property in California. Of the total 5.1 million t of recoverable nickel in the United States, about 20 pct is available at or below $3.50/lb.

Jan 1, 1984

By E. C. Baker

The Bureau of Mines estimated the economic feasibility of investing in a directional hole methane drainage project in the Pittsburgh coalbed for 5 yr in advance of mining. This report estimates the capital investment and operating cost of recovering 325 MMft3 of methane gas per year and the selling price of approximately 317 MMft3 of gas per year. The labor, equipment, and supply requirements were determined from those of a previous directional hole drilled at the Emerald Mine, near Waynesburg, PA. The cost of equipment, materials, services, and labor are in third quarter 1982 dollars. They were obtained from vendors, contractors, and the U.S. Department of Labor. Findings indicate a total capital investment of $1,381,160. Annual operating cost amounted to $167,690. At a wellhead price of $2.05 per thousand cubic feet, the sale of approximately 317 MMft3 of gas per year results in a rate of return on investment of approximately 25 pet.

Jan 1, 1984

By Ben E. Adams

The Duval Corporation Sierrita copper and molybdenum mining complex is located approximately twenty-three miles south of Tucson, Arizona. The original open pit mine, Esperanza, was put into operation in 1958 and utilized one tailings dam until the Sierrita operation began in 1970, and a second pond was started. Both tailings operations continued to be operated separate and independently of each other until 1977, when the Esperanza Mill was temporarily shut down, and the Esperanza Tailings Dam was retired from service. Except for short periods of use, no new tailings were put on the surface. With the reactivation of the Esperanza Mill in 1979, the Esperanza tailings were combined with the Sierrita Mill tailings and put on the Sierrita Dam, leaving the Esperanza Dam in a retired state.

Jan 1, 1984

1. Domestic Production and Use: In 1983, 12 companies operated 27 primary aluminum reduction plants, with 4 firms accounting for 65% of production. Washington, Oregon, and Montana accounted for 35% of the production; Indiana, Kentucky, Maryland, New York, Ohio, and West Virginia 35%; Tennessee, Alabama, South Carolina, and North Carolina 14%; other central States 16%. Based on published producer prices, output of primary metal in 1983 was valued at over $5.7 billion. Aluminum consumption by 25,000 firms was centered in the East Central United States. Packaging accounted for an estimated 37% of domestic consumption in 1983, transportation 19%, building 17%, electrical 9%, consumer durables 8%, and other uses 10%.

Jan 1, 1984

Research 84 highlights significant studies conducted during the past fiscal year at Bureau facilities and offices. Readers who want more information about the projects and studies summarized here can contact the researchers whose names and locations appear with each summary. General information on Bureau of Mines programs is available from the Office of Technical Information, 2401 E Street, NW., Washington, DC 20241. A listing of principal officials, a location map of field facilities, and a selected bibliography of publications and patents issued on Bureau developments during the past 3 years are provided.

Jan 1, 1984

By R. W. Watson

At the request of the Mine Safety and Health Administration (MSHA) the Bureau of Mines evaluated the potential hazards of three compressed oxygen self-contained self-rescuers (SCSR's) designed for use in under-ground coal mines. The evaluation followed the lines used in a similar investigation of chemical self-rescuers and involved laboratory experiments as well as field trials designed to simulate a mining environment. They included bullet impact, bonfire, feeder-breaker impact and feed-through, and mining machine runover tests. The work showed that the units were not inherently unsafe but that under certain conditions of extreme abuse they can present a potential ignition or explosion hazard. This, coupled with a survey of reported damage on SCSR's currently deployed in underground mines, which indicated a relatively high frequency of incidents leading to the destruc-tion of the units, led to new recommendations on the deployment of SCSR's. The recommendations formulated by MSHA state that the units should be either properly worn by the miner, stored in heavy containers, or otherwise protected from situations in which they might be accidentally ruptured or destroyed, such as runover by mobile mining equipment.

Jan 1, 1984

By Allen G. Gray

It's not news to you that the United States is highly vulnerable to potential problems in supply of critical and strategic metals, and that these metals - chromium, for example - are employed in important bearing alloys. It's also not news to you that there is a significant challenge to improve durability and life of bearing systems which contribute to conservation as well as productivity. The objectives of this workshop are to identify available technologies and opportunities for new technologies in conservation, substitution, and displacement of critical and strategic metals in bearing systems. These considerations are among the most viable options for reducing vulnerability to a cutoff of chromium and other critical metals and action should be taken to identify and develop those technologies now rather than after a crisis is upon us.

Jan 1, 1984

By W. R. Cowan

The Caledon Outwash is a large deposit of glaciofluvial gravel and sand located 55 km north west of down town Toronto. For the most part it was laid down in a meltwater channel fronting the Paris Moraine about 14,000 years ago. Applying the braided bar model of Eynon and Walker (1974) the principal facies present are imbricated coarse gravels (bar corefacies); crudely stratified, imbricated bar top sandy gravels; and trough crossbedded side channel sands and gravelly sands. Of lesser importance are crossbedded bar front gravels, shallow braided stream facies gravels, and stoss side facies sands and pebbly sands (rare). Lithologically these deposits are characterized by FIGURE I. Geological relationships of Caledon Outwash. Industrial Minerals in Canada up to 95% Ordovician limestone and siltstone in the gravel fraction. A siltstone content of up to 34% requires that beneficiation be carried out for the production of better quality aggregates. Resources remaining are estimated to exceed 500 million tonnes in 3000 ha of the most suitable part of the deposit. Present production is about 4.5 million tonnes per year, shared by several producers.

Jan 1, 1984

By D. R. BUDINSKI

Clinton Creek Mine in west-central Yukon produced 0.94 million tonnes of fibre from 15 million tonnes of asbestos ore between 1968 and 1978. The mine closed in 1978. The deposit lies along the margin of a medium sized ultramafic pluton that intrudes schistose and gneissic rocks of the Yukon Metamorphic Complex. Country rocks are metamorphic equivalents of a mixed sedimentary and volcanic assemblage deposited during Precambrian or early Paleozaic time. Movement along the north west-trending Tintina Fault System probably caused the fairly high meromorphic grade that altered the original rocks to schists and gneisses. The ultramafic pluton hosting Clinton Creek Mine is one of several bodies that were emplaced along a deep seated imbricate fault system parallel to the Tintina Trench. Most of rhe intrusions were hydrothermally altered to serpentinite, bur apparently only the one at Clinton Creek contains commercial quantities of asbestos. The Clinton Creek pluton was probably injecred slowly at relatively low temperatures into the crustal rocks as a "mush" that cooled gradually, allowing sufficient time for serpentinization and chrysotile fibre crystallizarion.

Jan 1, 1984

By N. D. Policow, J. S. Orphanos

D.A. Dahlstrom In the paper, a comparison was made between flowsheets using the screen bowl centrifuge and disc filters, respectively, as the primary dewatering device. The authors very effectively show that by raising feed temperature, mechanical dewatering is enhanced through reduced viscosity of the water. When a final coal moisture of 10% is required, the net effect of heating the feed is a reduction in thermal requirements because of the lower evaporated load on the dryer. The flowsheet comparison on this, however, was not completely correct. Disc filters do not generally utilize enhanced mechanical dewatering through increased temperature. Horizontal belt filters, through the optimal use of steam heating of the filter cake, have shown significant cost reductions over disc filters where steam is not used. In addition, the authors forgot to mention that there is a certain fraction of the feed that is so fine that it cannot be recovered by the centrifuge economically. That is the function of the filtration device shown in Fig. 4. In subbituminous pipeline coals, this fraction represents more than 10% of the feed. Even after flocculation and belt pressing, the moisture content in the fine fraction is 30%-40. Recent tests on a subbituminous pipeline coal slurry, compared an Eimco-Extractor horizontal belt filter with the screen bowl centrifuge flowsheet shown in Fig. 4. Mechanical dewatering was enhanced through the use of a steam dry zone after the initial dewatering zone. Vacuum pump horsepower was reduced by more than 50% through the use of condensors, and heat recovery was utilized to minimize thermal costs. Thermal drying to 10% moisture by weight was required in both flowsheets. The 0.5 wt% fines in the filtrate were flocculated and recycled to the filter, thus eliminating the belt press and solids mixers. When the three major operating costs (which normally account for 50%-75% of the coal operating costs) of steam, electricity, and flocculants at current prices were calculated, the flowsheets utilizing the Eimco-Extractor had cost savings vs the centrifuge flowsheet of 89¢/t (81o; per st) of surface dry coal. This advantage increases with increasing thermal and electricity prices. I congratulate the authors for the strides made with the screen bowl centrifuge. However, filtration flowsheets continue to be improved and their simplicity and low thermal and electrical requirements should not be so quickly dismissed. ? Reply by N.D. Policow From a technical standpoint, a number of extensive test programs have demonstrated that by raising the feed temperature, mechanical dewatering is enhanced whether it be centrifuges or filters performing the separation. Economic constraints usually become the over-riding issue. If an inexpensive source of thermal energy is available, i.e., waste steam, etc., the approach becomes commercially acceptable. For the specific case of coal slurry pipelines, since the dewatering plants will be located close to power generation stations, the preheating approach becomes especially attractive. The cost comparison shown in Fig. 7, which was prepared by a major West Coast engineering firm, contrasted screen bowl centrifuges and disc filters. In both alternatives, a thermal dryer was specified to produce a contract moisture of the final product. Sizing of the thermal dryer on the screen bowl alternative was substantially smaller than that of the filter, since the screen bowl was credited with a four to six percentage point decrease in product moisture compared to the disc. This comparison was made at ambient temperatures and reflected solely the mechanical dewatering capabilities of the two devices. No preheating of the feed was included in this particular comparison. Early generation screen bowl centrifuges operated under the principle of maximum bulk tonnage throughput. Second and third generation machines have followed the trends dictated by the coal industry calling for higher one-pass recoveries than previously demanded. The current generation of high-speed, long-bowl centrifuges permit recoveries of ultrafine solids directly comparable to commercial filter operation. On typical coal preparation plant feeds with nominal 600 E. an X 0 (28 mesh X 0) clean coal, recovery levels in excess of 99% are now obtained. The material that does escape the centrifuge and reports to the main effluent is typically -10 µm, high ash material. We have documented substantial beneficiation effects in screen bowl centrifuge performance with the cake product containing lower ash levels than the feed. On the referenced pipeline, coal tests performed on Western subbituminous coal, we found that the percentage of -10 µm material in the feed was six to eight times greater than normally encountered on eastern Appalachian seams. Our 45-t/h (50-stph) production centrifuge was never set up to maximize recovery. It was used as part of the two-stage dewatering circuit that had been chosen by designers of the proposed pipeline. Recoveries up to 95% were recorded. With field adjustments, that performance could most certainly have been improved. In contrast, manufacturers of the horizontal belt filter provided a small pilot-scale unit that operated on a side stream at the test facility. Numerous combinations of chemical additions were evaluated to determine those that had the best impact on filter performance. Whereas the screen bowl centrifuges operated without chemical addition, producing a dry, fluffy cake, the belt filter required two stages of chemical addition to attain satisfactory performance and high recovery levels. On the two-stage circuit that incorporated a belt press as the secondary

Jan 12, 1983

Ten years ago, only 3% of Consol's underground coal production resulted from using the longwall mining method. Today, that figure has grown to 45% and has helped the Pittsburgh-based concern fuel an upswing in productivity. The company reported that productivity at its underground mines, excluding labor strike periods, increased 24% between 1978 and 1981. Last year, an additional 8% increase was achieved. Efforts such as improved safety, training, engineering, and maintenance programs as well as the closing of unproductive mines has contributed to these gains, according to Joseph M. Richards, Consol's executive vice president of operations. But, Richards adds, a great part of the credit goes to longwall mining. What is Longwall Mining? To fully appreciate the advantages of longwall, one needs an understanding of how mining is done by other methods. For instance, in both conventional and continuous mining, rooms or tunnels are dug in the coal seam. Pillars of coal are left standing to support the roof as mining moves forward in the seam. In conventional mining, a slot is cut in the base of the seam and holes for blasting are drilled. After blasting, the coal is loaded. A more efficient method - continuous mining - uses a machine that combines cutting and loading. Longwall mining, by contrast, works backwards from the end of a panel. Two parallel sets of tunnels (development panels) are cut into a seam with continuous mining machines, then connected with a set of crosscuts at the far end. Min¬ing then proceeds back toward the entrance. Longwall mining employs some very productive machines. Large drum shearers, for example, run on a track along the length of the coal face for some 150-180 m (500-600 ft). The shearers cut the coal which falls onto a conveyor system or pan that also runs the entire length of the face. The longwall crew works under a roof of heavy steel supports called shields. As the coal is removed, shearers, pans, and shields are moved forward by hydraulic rams. The roof is allowed to collapse behind the shields. In addition to increasing production, longwall mining is considered to be safer because the miners work under strong steel shields. New designs have made them more rugged and maintenance free, as well as more stable on soft mine floors. Early roof supports, called chocks, had gaps in the roof canopies. The new roof shields now cover the entire working area and are better able to prevent roof material from falling into the working area, thereby improving safety and productivity. Longwall mining also results in a cleaner product in many mines. If the first layer of rock over the coal seam is thin, it might have to be removed with the coal in a room-and-pillar operation so a

Jan 11, 1983

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 Joseph A. Hrabik

The Bureau of Mines compared the feasibility of mining deep phosphate deposits by a borehole mining system with mining by proven conventional techniques. An economic comparison of the borehole mining system with conventional dragline and bucket wheel excavator mining systems was completed at various mining depths and production rates. Hypothetical phosphate deposits, with various overburden thicknesses and reserve tonnages, were defined. Geologic conditions necessary for the application of the borehole system were identified. Discounted cash flow analyses based on derived capital and operating costs were used to generate rates of return and product prices. Borehole mining was found to be more economical where overburden thickness was 150 ft or greater; however, at 50- and 100-ft thicknesses, conventional surface mining was more economical. Overburden thickness has a great effect on the economic feasiblity of the conventional mining systems but less effect on the economics of borehole mining. Economies of scale are only realized in conventional mining, since larger equipment is employed to achieve greater production, whereas increased production from borehole mining is achieved using additional equipment units. A comparison of the environmental effects of borehole and conventional surface mining systems showed that borehole mining is environmentally more desirable.

Jan 1, 1983

The last issue included a discussion of recent indications of a 1983 recovery and a brief analysis of the contribution of the U.S. mining industry to the gross national product (GNP). In this issue we present sales and other data indicating the strength of the 1983 recovery and quantitatively analyze the structural shifts that have taken place in the U.S. economy and mining industry since 1972, and changes in electricity consumption by the mining industry. U.S. Economic Recovery The tentativeness in the February/March issue of Minerals and Materials regarding the strength and sustainability of the U.S. economic recovery can now be replaced with a note of increased confidence. Real growth of GNP on an annual basis in the first quarter of 1983 was 2.5 percent, compared with 1.4 percent predicted in the Economic Report of the President.1/ Preliminary second-quarter 1983 data provide further cause for optimism. Recently released data indicate that consumer spending is playing a key role in the recovery. Retail sales have increased significantly across a wide array of goods, especially consumer durables, where sales increased 4 percent from March to April (table J) and were 12 percent higher in April [ ] than the 1982 monthly average. Consumer durable sales were led by sales of building materials spurred by the growth in residential construction, motor vehicles and parts, and household durables, including appliances and furniture.

Jan 1, 1983

During the second quarter of 1983, the economic recovery showed further strength abetted by the performances of consumer spending, residential investment, and the slowing down of inventory reductions. Real gross national product (GNP) increased from the first to second quarter at an annual rate of 9.2 percent, compared with 2.6 percent from the fourth quarter of 1982 to the first quarter of 1983 and an overall 1.9- percent decrease in 1982. Total industrial production increased 1.8 percent in July, and productivity as measured by output per man-hour increased 1.3 percent between 1982 and the first quarter of 1983 (table 1). Especially noteworthy .was the performance of real consumer durable goods expenditures, which increased at an annual rate of 32.0 percent from the first to the second quarter (about half of the increase consisted of automobile sales) and real consumer spending, which increased between these periods at an annual rate of 9.7 percent. Residential investment increased at an annual rate of 76.1 percent between the first and the second quarters,1/ and private housing starts by about 38,000 units in both March and May.

Jan 1, 1983

By D. A. Karvonen

Although the economy in the Province of Saskatchewan has historically been agriculturally oriented, a major new source of wealth has been realized through natural resources such as petroleum and natural gas, coal and uranium and since the 1960's - potash. Potash or potassium chloride, in the form in which it is presently produced in Saskatchewan is used primarily as fertilizer, a source of potassium, one of three essential elements required for healthy plant growth with about 5 percent of production sold to the chemical industry for use in such products as soap and liquid detergent, glass and ceramics, textiles and some pharmaceuticals. Saskatchewan is estimated to have approximately 40 percent of known world potash reserves and its ten active mines account for some 25% of annual world production. The development of this resource was recognized to be important to the development of Saskathcewan. In an effort to guarantee a fair and lasting economic benefit to the Province of Saskatchewan the Potash Corporation of Saskatchewan (PCS) was created on February 4, 1975 through an Order-in-Council under the Crown Corporation's Act and later on April 1, 1976, the Potash Corporation Act provided for its continuation. PCS was given the mandate to acquire ownership of a significant portion of the potash mining capacity in Saskatchewan and to establish an organization capable of operating the facilities, marketing the product and conducting all of the other activities necessary for a successful corporation competing in the world potash industry.

Jan 1, 1983