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By Allan M. Johnson

Case histories were used to document and evaluate deficiencies in underground mine closures which have resulted in post-operation problems such as subsidence shaft failures, acid or toxic water drainage and others. Three different underground mining districts in the United States were investigated; 1) an iron mining district in Michigan 2) coal mining districts in eastern Ohio and southern Illinois and 3) three metal mining districts in central Colorado. Previous work in the Michigan district on problems with subsidence and acid water drainage provided the background from which the concept for this project was developed Student investigators working towards their MS degrees in Mining Engineering did the work on the eastern coal and western metal districts. The combined studies show that problems from acid water drainage, subsidence and inadequately protected mine shafts are the most severe and widespread. Suggestions of a technical nature are presented as partial solutions to some of these problems. It was determined that pre-closure evaluations could result in the identification of some potential problems that may occur after the mine is closed. Early recognition of these problems would be an advantage for at this time more options are available to the mine operator to either prevent them or to plan for their occurrence. Mine closure and reclamation should be considered as a part of mining and be incorporated in the mining plan. This would result in reduced environmental impact and would be achieved at a lower overall cost to the mining companies and to society. The role of water in the occurrence of several types of subsidence during mine flooding was significant at some mines in the Michigan district. These mechanisms which involve, friction reduction, gravity loading, overburden transport and hydraulic forces in a flooded mine probably have a broader effect than is currently recognized. Control of these processes may offer some interesting options during mine closure. It is recognized that technical solutions alone cannot provide all of the answers to problems associated with underground mines. Education, modified attitudes on the part of regulators and operators, and a more realistic perception of the importance and value of mining by the general public are also needed.

Jan 1, 1983

By Gerald P. Kelton

Over the past quarter of a century, the success of the hydrocyclone as a classifier in closed circuit grinding installations has permitted the introduction of the cyclone into virtually all fields of wet industrial processing. Research and experience gained in these applications have established the optimum cyclone sizes and designs necessary to provide the required performance. Although cyclones are used in widely diverse liquid-solid applications, their use for ultrafine separation clearly demonstrates the importance of a familiarity with previous case studies. Krebs Engineers is firmly dedicated to serving the process industry and has acquired the unsurpassed knowledge and experience to handle all types of separations and classification problems. Cyclones have been used for a number of applications to make what might be considered fine separations. A typical example is in an iron ore grinding circuit where a 381 mm diameter cyclone will classify an overflow product to 85% -44 micron. There is no question that this is a fine separation, but still finer separations are possible, and these are known as ultrafine separations.

Jan 1, 1983

The U.S. economy showed further strength during the third quarter of 1983, continuing the upward trend discussed in the last two issues of Minerals and Materials. The National Association of Purchasing Management composite index increased to a 10-year high of 67. 1 in July. (A value of 50 or greater indicates expanding industrial activity.) The index, a weighted composite of new orders, production, employment, vendor performance, and inventories, is derived from a survey of purchasing agents for about 250 industrial firms. Investment and Other National Economic Indicators The strong consumer surge of second quarter 1983 was reinforced during the third quarter by the performance of private investment. Because of this, many analysts became more optimistic about the strength of the recovery and its potential for being sustained. Capital investment growth, negative since 1980, was positive for every investment component in the third quarter of 1983. Preliminary estimates indicate a real increase of $1.4 billion (at an annual rate) in private investment expenditures on nonresidential structures, an increase of $4.3 billion (at an annual rate) for producers' durable equipment, and an increase of $4.8 billion (at an annual rate) in real inventory levels. The second quarter 1983 increase in expenditures on producers' durable equipment was the first indicator that investment recovery would occur during the rest of the year (table 1). Corporate profits in total manufacturing increased $6.5 billion from first quarter to second quarter 1983 (table 2).

Jan 1, 1983

Please note all Proceedings of the Institute were taken verbatim by stenotypists from Hyatt & Associates of Denver and editing has been minimal. MR. MORTENSEN: On behalf of the Rocky Mountain Coal Mining Institute, I take great plea¬sure in saying good morning to you at Vail. With a few clouds in the sky, at least we won't get sunburned. We won't have to worry about our kids in the swimming pool, perhaps. It is delightful for me to have been able to have represented the Rocky Mountain Coal Mining Institute for the year 1982-1983. This has been our 71st year and this is our 79th meeting. In recognizing the attendance here, that dinner we had last night, and some of our entertainment must have gotten to some of us, or it is a little early. But I'm sure as the day goes on, and with the speakers outlined, it will be very beneficial for those who do attend. We do appreciate your attendance. I'd first like to make an introduction of our head table. Doris Finnie, she is our executive secretary. As most of you are aware, Gussie Whiteside retired as secretary. This will be the first time since the Institute started that there has not been a Whiteside present at one of our conventions. I'm sure Gussie would appreciate any calls or letters that any of you would care to make to her. Doris, I might add, has been a great help to me and all of the people who have been working on the program for the Institute this past year. There's been lots of reorganization and we are very pleased with Doris's ability to take hold from Gussie without any waves. Much credit must be given to you Doris for this and we do appreciate the help you have given us and believe me she has kept us out of trouble. Next, we have Art Neill. He is our vice president of the Institute from Montana and he also works with Western Energy Company. We appreciate the help that all of these session leaders and chairmen give to us. We have other names on the head table, but they will fill in as the morning goes on, so we won't bother you with any of those at this time. To set the stage for business, first I would like to call on Doris for a motion to approve the minutes of last year. MS. FINNIE: Thank you, Vernal. Mr. President, I suggest that the reading of the minutes be dispensed with and that the members refer to pages 9 through 80 of the Proceedings for the 78th regular meeting of RMCMI, as published MR. MORTENSEN: Thank you, Doris. Do we have a motion to so approve? MR. LINVILLE: I so move. MR. MORTENSEN: Loren Linville so approved. Do we have a second? MR. GARR: Second. MR. MORTENSEN: All in favor say aye. (Audience responded affirmatively.) MR. MORTENSEN: Those opposed? Hearing none, the motion is carried. I'm sure glad we didn't have to read those 80 pages. Is Doug Hammer in the audience? He was going to give us a list of new members of the Coal Institute and ask for your approval. But because of his absence, the names will be listed so that you can read them at a later date, I will entertain a motion that we approve the new members who have joined the Institute. Do I so have a motion? MR. BERNSTROM: I would make that motion. MR. GARR: I second. MR. MORTENSEN: Do we have any questions? All in favor¬ (Audience responded affirmatively.) MR. MORTENSEN: Any opposed? Hearing none, the motion is carried. Next, we'd like to proceeed with our Nominating committee report from the chairman, George Nugent, and the election of next year's officers. George, would you please take the stand? MR. NUGENT: Mr. President, and members of the Institute, your Nominating committee consists of five past presidents of the Rocky Mountain Coal Mining Institute. From Colorado Roy Coulson; from New Mexico, Bob Wilson; from Utah, Bob

Jan 1, 1983

By L. R. Verney

A number of interrelated factors influence the economics of the sulphide smelting of copper, lead, zinc and nickel. This paper discusses these factors, mainly from a US point of view, and shows how they affect the cost of construction and operation of new and existing plants. The paper shows how metallurgical plant construction costs and the consumer price index have increased at a much faster rate than metal prices thereby making some metal mining and production operations within the USA, Canada and the EEC less profitable than operations elsewhere. This in turn inhibits new "grass roots" metallurgical developments. It is explained how retrofit of existing pyrometallurgical plants can be a more viable development than the construction of "green field" plants, especially if such retrofit improves, energy efficiencies, overall operating costs and reduces emissions of sulphur and other toxic wastes. Some aspects of metallurgical plant operation are examined, especially for copper and nickel, to show how changes in operating practices may develop in order to improve overall smelting economies, especially when developed in conjunction with objective retrofit. The paper also examines some financial aspects, especially insofar as the disparity between terms for loans offered to third world countries and the USA and the EEC are concerned and also comments upon the need, especially within the USA, for legislation to permit rapid depreciation of capital. Specific comments are made about environmental aspects, including the lack of uniformity of pollution control legislation and how environmental considerations may have some bearing of the location of future smelting operations.

Jan 1, 1983

By Frederic L. Kadey

Perlite, as a volcanic glass, has been recognized since the Third Century, B.C. (Langford, 1978). The precise details of discovery often become lost in antiquity, and the variations among the stories pertaining to the more recent discovery of perlite as a material of commerce are no exception. Credit in the United States is given to a dentist who, while experimenting with tooth enamels about 1941, discovered that perlite-the rock-intumesced when subjected to heat. At about the same time it is reported that the chief geologist of Silver and Barytes Ores Mining Co. attempted to put out a picnic bonfire on the shores of Milos Island, Greece by throwing beach sand on it. The ensuing pyrotechnic display immediately conjured up in that man's mind the possibility of a new use for the volcanic rock that constituted most of the island. Very little was done with this discovery either here or abroad until after World War II. Today the name perlite is applied to both the hydrated volcanic glass, generally of rhyolitic composition, and to the lightweight aggregate that is produced from the expansion of the glass after it has been crushed and sized. Petrologically, it is defined as a glassy rhyolite that has a pearly luster and concentric, onionskin parting. Occurrences of perlite are restricted to several Tertiary to Quaternary age rhyolitic belts that trend in a generally north-south direction around the world. Commercially suitable deposits generally occur as domes of several hundred feet in height, although glassy zones in welded ash-flow tuffs and others associated with dikes and sills also have been reported. Mining is by ripping and blasting from open pits. Because of weight considerations, perlite usually is shipped to the local market area for subsequent expanding. In the United States, New Mexico leads in production with Arizona, California, Nevada, Idaho, and Colorado following in approximately that order. The principal use for expanded perlite is as a lightweight insulating aggregate in cryogenics, in plaster, concrete, and in loose fill insulation. Expanded perlite is also used in horticultural applications, and after subsequent milling and classification, as a filter aid. The United States is the world's largest producer and consumer of perlite. Table 1 shows the world production of perlite and Table 2 shows the perlite mined, processed, expanded, and sold or used by producers in the United States. Geology Composition and Morphology Any discussion of perlite must take into consideration its dual nomenclature, for it is known by the same name as both the naturally occurring rock and, after processing and expansion, as the lightweight aggregate of commercial significance. In its naturally occurring form, perlite is a rhyolitic glass that contains from 2 to 5% combined water. While perlite also can occur as andesitic or dacitic glass, these latter types are of negligible commercial significance. Table 3 lists the chemical composition of a few typical perlites (Anderson, et al., 1956; Langford, 1979). What sets perlite of commercial significance apart from other volcanic glasses is the fact that under the proper conditions of preparation-crushing and sizing-it will, when rapidly introduced into a flame of sufficient temperature, expand or "pop." All of the elements of composition contribute to the expansibility of the rock. The role of the combined water, however, is the most significant because it is believed not only to produce a fluxing effect in the softening of the highly siliceous glass prior to expansion, but it is also responsible for the explosive force of expansion through volatilization during heating. The current theory of the origin of the water in perlite is now less con-

Jan 1, 1983

By R. J. McClincy

The potential techniques for the direct smelting of copper sulfide concentrates to blister copper were evaluated from the standpoint of commercial application. Many existing smelters are adaptable to direct smelting practice but only with improved control of metallurgical performance. Modified and innovative procedures for slag cleaning and metal refining, prerequisites to direct smelting, are presented and discussed. The ability to smelt directly to blister copper using existing equipment and eliminating the need to convert matte offers ,significant advantages to traditional smelting practice from the viewpoint of cost, 'S02 control, and process simplicity.

Jan 1, 1983

Offshore petroleum development involves massive capital expenditure and financing demands, with the main participants being large international oil companies and State owned enterprises. Types of project oriented financing include take-or-pay contracts, throughput agreements, and production payment financing. The main project finance credit aspects are revenues, investment budgets and cost over- runs, reservoir, political and other risks and special problems such as weather and corrosion in the North Sea. A variety of documents is required and a mix of equity, export credit and Euro-market financing will typically be included in the financing.

Jan 1, 1983

By Robert B. Parsons

"Although the April 19, 1983 federal budget appears to put greater emphasis on new or expanded government spending programs in an effort to get Canadians working again, the budget proposals contain a light sprinkling of tax changes which could be of some direct benefit to the mining industry.This month, Tax Notes examines some of the more important of these changes.IntroductionSome sectors of Canada's mining industry could benefit from the proposed income tax changes announced by Finance Minister Lalonde in delivering his budget address to the House of Commons on April 19, 1983. Improved depletion allowance rules, expanded investment tax credits, better use of business losses, and inflation proofing of personal capital gains on Canadian common shares are all part of the measures included in Mr. Lalonde's first budget to try to reinvigorate the battered Canadian economy.Improved DepletionUnder the Income Tax Regulations, a taxpayer who incurs Canadian exploration expense (and certain other eligible expenses) is permitted to deduct not only the full amount of the Canadian exploration expense (""CEE""), but also an additional allowance (the so-called earned depletion allowance) equal to one-third of the CEE. Thus, a taxpayer in certain circumstances can claim a deduction of $1.33 for each $1.00 of eligible expenditure, including CEE.Although CEE can be deducted from any source of the taxpayer's income (for example, from investment income, salary income, and so on), prior to budget date the earned depletion allowance was deductible only from the taxpayer's resource profits. This restriction on the deductibility of the earned depletion allowance substantially reduced the attraction of the allowance: few individual investors or investment companies, for example, have the required stream of resource profits, at least when the CEE or other eligible expenditure is made."

Jan 1, 1983

By Joseph M. Pugliese

The Bureau of Mines through its contract research program recently analyzed the mining and environmental requirements in the premining stage for copper mining in the northern highland of Wisconsin. The Critical-Path-Method (CPM) was used in this research. However, a step-by-step derivation of the CPM Diagram was beyond the scope of this effort. The Bureau of Mines objective now is to show, step by step, how the original hand-computed CPM Diagram was constructed. The streamlining (restructuring) of this diagram from the original effort is also summarized. The critical path time (longest time) through the original CPM Diagram was 25.12 yr, excluding public liaison effort. This diagram showed the involvement of the regulatory agency, mining applicant and public in the premining stage. Analysis of this diagram produced a streamlined version which reduced the critical path time by nearly 7 yr. The CPM construction methodology offered here may be applied to mine planning for any mining operation.

Jan 1, 1983

By George D. Graffin.

The first use of graphite is lost in the mists of time. It was used by primitive man to make drawings on the walls of caves and by the Egyptians to decorate pottery. As early as 1400 A.D. graphite crucibles were being made in the Haffnerzell district of Bavaria. Through the Middle Ages graphite was confused with other minerals, especially galena and molybdenite. Two common names that are still used for the mineral are "Plumbago," meaning leadlike, and "Black Lead." The latter name implied that graphite is either composed of lead or at least contains a large percentage of it. Gessner is credited with having recognized it as a separate mineral in 1565, but its composition was not determined until 1779, when Scheele demonstrated that graphite oxidized to carbon dioxide, thus proving its carbon constitution. In 1789, Werner named it "graphite" from the Greek word "graphein," meaning to write. The United States has long relied on foreign countries for its graphite supplies. This reliance has been due more to the lack of suitable domestic graphites than to any particular preference for buying minerals overseas. Ceylon (now Sri Lanka) graphites were imported as early as 1820, and Madagascar graphites have been imported since the properties on that island were opened up about a hundred years later. Mexico has long supplied the United States with most of its requirements for amorphous graphite. Physical Properties and Classification Graphite is found in laminated, flaky aggregates disseminated in schistose rocks. It also occurs in veins and exhibits a foliated or fibrous structure. Graphite is a black lustrous mineral that crystallizes in the hexagonal system, with rhombohedral symmetry. The crystals have tabular form and are six-sided; the faces are commonly striated. The flakes have perfect basal cleavage and are opaque. When well crystallized, the flakes have a black metallic luster while the amorphous material is black and earthy, with a microcrystalline compactness. The flakes feel greasy. Graphite is an excellent conductor of heat and electricity. It melts at approximately 3550°C at a triple point under 1250 psi. It sublimes between 3300-3500°C at 14.7 psi. At 3726°C a second triple point occurs at approximately 100,000 atmospheres. Thermal oxidation in the presence of oxygen begins at 300°C and the rate increases with temperature. The three forms of carbon (charcoal, graphite, and diamond) are distinguished by chemical and physical tests. The specific gravity of charcoal is 1.3 to 1.9, of graphite 2.266 g/ cm3 (crystal density), and of diamond 3.5. Graphite has a hardness of 1 to 2 (Mohs' scale). Natural graphite can be divided into three classes: disseminated flake, crystalline vein (fibrous or columnar), and amorphous. Flake graphite is a lamellar form found in metamorphic rocks, such as marble, gneiss, and schist. Each flake is separate, having crystallized as such in the rock. Crystalline vein graphite is found in the form of well defined veins or as pocket accumulations along the intrusive contacts of pegmatites with limestones. The graphite of such deposits is of two types, foliated and columnar. The important Sri Lanka (Ceylon) deposits are vein type. Amorphous graphite is commonly found as minute microcrystalline particles more or less uniformly distributed in feebly metamorphic rocks, such as slates and shales, or in beds consisting practically entirely of graphite. The latter usually are metamorphosed coal seams and carry as much as 80-85% graphitic carbon, while the former, being altered carbonaceous sediments, commonly range from 25 to 60%

Jan 1, 1983

By Gary D. Aho

The United States on a daily basis no consumes about 15MM barrels (2.38 x 106m3) of oil; 5MM (0.79 x 106 m3) of this is imported. This compares tai a daily consumption of 18MM (2.86 x 106 m3) in 1980 when we imported 8MM (1.27 x 106 m3). We are producing the 10MM barrels (1.59 x 106 m3 ) of conventional oil at home from what amounts to just 2% of our domestic energy reserves. Nearly 90% of our total domestic energy reserves occurs in solid forms such as coal, oil shale, and tar sands; this is more than enough to meet our needs for the next 100 years. Worldwide, oil shale is second only to coal as a potential source of energy and the U.S. has approximately one-half of the world oil shale reserves which average over 25 gallons per ton (10.43 x 10-2 L/kg). Since the United States has immense oil shale resources, including some of the richest in the world, and since oil shale produces a superior transportation fuel, it would seem logical that the U.S. would be prudently developing this domestic resource. Unfortunately, despite over 50 years of research and a number of false starts, there is not a commercial shale oil industry in place today. There are a number of recurring roadblocks which have hindered private industry's efforts to develop oil shale and we will look at some of these.

Jan 1, 1983

This section presents highlights of world economic and mineral industry performance in 1982, a year characterized by continued recession, and selected 1983 forecasts of economic indicators of importance to the mineral industry, some of which indicate a modest improvement in the economies of the United States and Western Europe. The U.S. Economy in 1982 In 1982 U.S. gross national product (GNP) in current dollars increased at a rate of 4 percent, but GNP adjusted for inflation (real GNP) declined at a rate of 1.8 percent. Yearend 1982 real GNP was at roughly the same level as in 1980 (table 1). Thus no growth in real terms had taken place in the United States during the 1980-82 period.

Jan 1, 1983

By Deborah A. Spotts

Researchers at the Bureau of Mines have developed a technique for re- generating chromic acid-sulfuric acid etching solutions used in metal surface treatment operations. The technique utilizes a diaphragm cell equipped with a cation-selective membrane to oxidize cr3+ to cr6+ at the anode and to remove copper, the major metallic contaminant, at the cathode. Normally, spent etchant is discarded after approximately 3 days of use. Using the electrolytic cell, the etchant can be used for a year without replacement, From data obtained from industrial-scale cells, the installation of a regeneration cell with a 1,000-gal catholyte- holding tank has been estimated to save at least $240 per day, The payback period for the investment is estimated to be about 10 mo or less. Because the magnitude of these cost savings will vary at different locations, several graphs are presented to aid in calculating payback for a specific site. Using these graphs and the capital costs presented in this study, the payback period can be determined for installing a regeneration cell with a 500- or a 1,000-gal catholyte-holding tank in an existing surface treatment plant.

Jan 1, 1983

By J. Réal Cloutier

[Options are a natural extension of the forward and futures markets as they offer fexible method of hedging exposure. -An organized options market is preferable to the "over the counter forward markets since EGCC (EOE, ME, VSE) assumes responsibility for contract fulfillment minimizing credit risks by guaranteeing transactions. -Options ante considerably more "fexible" than the futures and forward markets, permitting prompt, precise and respected adjustment of one's exposure risk position. -The risk to the buyer of the options market is limited to the initial premium paid.]

Jan 1, 1983

By Catherine C. Kilgore

The Bureau of Mines investigated the availability of lead and zinc from 104 domestic mines and deposits. Fourteen primary lead and fifty-three primary zinc operations with in situ demonstrated resources containing 27.3 million metric tons (t) of lead and 53 million t of zinc were subsequently evaluated. Potentially 17.5 million t of lead and 2.4 million t of byproduct zinc could be recovered from 14 primary lead operations. Economic evaluations performed in constant January 1982 dollars determined a long-run total cost per pound of recoverable commodity. Including a 15-pct discounted-cash-flow rate of return (DCFROR), 59 pct of primary lead was potentially available at or below $0.32 per pound of lead. Potentially 40 million t of zinc and 5.6 million t of byproduct lead could be recovered from 53 primary zinc operations. Ninety percent of the recoverable zinc is potentially available from currently nonproducing mines and deposits, and a weighted average of their long-run total costs was determined at $0.98 per pound of zinc. At a breakeven (0-pct) DCFROR, these non producing operations had a weighted average long-run total cost of $0.58 per pound of zinc. Sensitivity analyses illustrated that operations that recover byproducts were most sensitive to fluctuating metal prices, producing operations were more sensitive to increased smelter treatment charges, and nonproducing operations were impacted most by the DCFROR.

Jan 1, 1983

By J. G. Eacott

This paper reviews the role of oxygen potential and the advances that have been made in the application of tonnage oxygen in copper smelting. Brief reference is made to reaction kinetics before attention is turned to the thermodynamic considerations in copper melting to illustrate the importance of oxygen and. oxygen potential in the component parts of the overall smelting process. The chemical potential diagram for the Cu-Fe-S-O-Si02 system is used to elucidate the difference b etween the conventional matte smelting process and the modern continuous processes. A progressive oxidation scale' is constructed to show the common elements which exist, and the matte grades produced, during the smelting of concentrates to blister copper in commercially available copper smelting processes and those under development. The common route in producing blister copper from molten mattes, regardless of process, is illustrated on the Cu-Fe-S equilibrium phase diagram. The essential features of oxygen enrichment, in terms of its effect on combustion conditions (i.e. oxidation of fuel and sulphide minerals) and the heat balance are outlined. The benefits of oxygen enrichment are listed. The influence of tonnage oxygen and its effect on productivity, fuel savings, gas volume and strength in various copper melting processes are examined as a state-of-the-art review. Reference is made to the economics of tonnage oxygen utilization.

Jan 1, 1983

By Ani Chitaley

A new method has been developed for handling supplies in underground bituminous coal mines. A survey indicates industry wide implementation potential for the proposed method. Reduction of supply handling accidents' by as much as 73% and improvements in the productivity of face operations by at least 3% are anticipated benefits. The new method is based on the palletization of daily supplies and the use of a forklift for carrying out the handling tasks at the underground section. A prototype of the forklift has been delivered to the U.S. Bureau of Mines. The forklift has demonstrated several important features necessary for underground supply handling such as compactness, maneuverability, visibility, ease of control and auxiliary attachments for hoisting, carrying timber and pulling. Design improvements are recommended for future generation underground forklifts. These relate to higher speed, increased battery duty cycle, higher payload and modified traction/steering to eliminate plowing of soft mine floors.

Jan 1, 1983

By G. R. Peterson

To determine the availability of aluminum from world bauxite resources, the Bureau of Mines investigated 139 bauxite deposits worldwide and evaluated the potential production of aluminum based on the demonstrated resources of bauxite ore from 91 mines and deposits in 22 market economy countries. The demonstrated resources of the bauxite mines and deposits included in this study represent an in situ resource of 20.2 billion metric tons of bauxite. Total identified bauxite resources in market economy countries amount to roughly 31.9 billion tons. Of the demonstrated resource, some 18.8 billion tons of bauxite considered minable provide a production potential of 3.6 billion tons of primary aluminum. Given the wide geographic distribution of bauxite deposits, stable supplies of bauxite for aluminum production seem assured well into the next century. However, a tight market situation could develop during the 1990's unless the real price of aluminum increases enough to stimulate massive new investments in production capacity, particularly in refining and smelting. This study indicates that a real price of at least $0.85 per pound (in January 1980 dollars) would be necessary to stimulate the required investments and provide a sufficient rate of return on invested capital.

Jan 1, 1983

By R. D. Rosenkranz

The Bureau of Mines has investigated the availability of copper from 272 deposits in market economy countries. The deposits studied have demonstrated resources totaling 413 million metric tons of contained copper and account for more than 90 pct of the reserve base for market economy countries. Using data gathered as part of its Minerals Availability Program, the Bureau performed geologic, engineering, and economic evaluations in order to determine the copper production potential of each deposit. At the 1981 copper market price of $0.85/lb, the deposits studied could economically produce an estimated 88 million metric tons of copper (allowing for profit computed at a 15-pct rate of return), primarily from mines operating at the time of the study (1981). At this price, producing mines in market economy countries could economically produce only 2.1 million metric tons of refined copper per year. However, actual 1981 production was 6.2 million metric tons, indicating that many mines continued to operate even though they were unable to cover all production costs. For U.S. producing mines, the estimated average cost of production per pound (including profit at a 15-pct rate of return) was $0.15 higher than the average cost in other market economy countries.

Jan 1, 1983