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By James P. Savely, Victor L. Kastner

Inspiration Consolidated Copper Company is currently mining in four pit areas; Live Oak, Red Hill, Thornton and Joe Bush Extension, near Globe, Arizona. Small satellite orebodies lying outside the main pits have been mined out in a series of small open pits. Major slope instability has affected production in every pit. Some consequences of the instability have been; (1) Serious interruption of mining plans, which resulted in deferred ore production, lost ore, reduced mining rates and increased stripping requirements. (2) Forced replacement of crushing facilities. (3) Serious effects on other production facilities. The introduction of a slope stability monitoring and control function as an integral part of mine planning has been successful in reducing the impact of these failures and will eventually result in economic pit design based on probabilistic slope analysis. This case history presents a brief review of the problems associated with slope instability at Inspiration's mines followed by a more detailed report on one specific failure area in the Thornton pit where the use of horizontal drain holes for slope stabilization appears to be successful. Relationships between slope movement rate, rainfall, and mining activity are shown.

Jan 1, 1983

The Florida phosphate industry currently produces more than 80 pct of the total U.S. marketable output of phosphate rock. Because phosphate is one of three principal nutrients used in formulating a complete fertilizer, it is imperative that an uninterrupted supply of this material be available to meet the agricultural requirements of the United States while maintaining a viable phosphate industry which is competitive in world markets. As a result of an evaluation made by the Bureau of Mines, five areas were identified that affect the overall production and projected growth of the phosphate industry in Florida. These areas relate to the technological ability of the industry to comply with environmental regulations and performance standards by using the best available technology. The most significant technical problem facing the industry is the management of the clay fraction rejected during the beneficiation of phosphate ores. Other areas of concern are environmental restrictions and regulatory requirements, issues associated with mining and reclamation of wetlands, reclamation of other disturbed lands, and consumptive water use. Each of these areas is reviewed, with major emphasis placed on the current state-of-the-art processes for treatment and management of phosphatic clays.

Jan 1, 1983

By Sammie D. Guy

This paper discusses the subject of "Improving Contracting Methods" from the owners point of view, particularly the public. An overview is given of the work of the U.S. National Committee on Tunneling Technology and some apparent results of the implementation of these recommendations or lack thereof. Selected recommendations that are not being implemented are discussed as to the the desirability and the possible impact of their implementation. Impediments to acceptance of the recommendations are identified and solutions proposed. The difference in the flexibility, attitudes and approaches of owners, public, quasi-public and private, toward improving contracting methods are discussed. Particular emphasis is given to the fact that the onus to improve is on the owner because they usually develop the contractual language or at least have the final decision on its content and are or should be an equal party to the contract during its administration.

Jan 1, 1983

By C. M. Davidson

Contamination of by-product: sulfuric acid, by dissolved oxides of nitrogen ('nitrates') occurs under some operating conditions encountered in sulfide roasting and smelting,, notably when oxygen-enriched air is used. This 'nitrate' lowers the value of the acid and increases the effective cost of smelter gas desulfurization. The present paper describes measures taken at one smelter acid plant to remove this 'nitrate'; it discusses the mechanism by which 'nitrates' in some cases concentrate in one part of the plant and can be purged for more efficient treatment; and it describes a process developed by C-I-L Inc. for removal of 'nitrates' from such a purge stream. Advantages of the process include very low reagent cost, recovery of all sulfuric acid values and safe handling of nitrous fumes.

Jan 1, 1983

By E. Chin

Although Japan is a major producer of crude steel, it is poor in industrial raw materials. This Bureau of fines report describes Japan's raw material needs for chromium, cobalt, manganese, nickel, and tungsten to produce ferroalloys and alloy steels. Japanese imports of these ores or metals by quantity and source are given for 1972-81, inclusive, to indicate (1) the changes in the consumption and supply pattern, and (2) the degree of Japan's dependence on foreign sources. This report also describes measures implemented by Japan to reduce the risk- of supply interruption, and discusses the possible implications of supply shortages.

Jan 1, 1983

By Henry O. Ash

On June 16, 1982, Rio Blanco submitted a request to the US Minerals Management Service for a suspension of operations under its federal oil shale lease. The company also wanted a five-year delay in the requirement for further minimum royalty payments and a five-year extension of the primary lease terms of 20 years. The request was granted in late July in the midst of yet another slump in oil shale activity. Rio Blanco holds one of four Federal oil shale leases that were granted under the Interior Department's Prototype Oil Shale Leasing Program in 1974. That year the DOI offered for lease six federal oil shale tracts, two each in Colorado, Utah, and Wyoming. The leases in Colorado and Utah were granted for substantial bo¬nus bids as shown in Table 1, but the Wyoming tracts had no takers. In the eight years hence, no oil shale has been produced commercially. Indeed, the prospects for successful oil shale development have fluctuated widely, continuing a 60-year- old cyclical pattern in the fledgling industry. The prototype program was developed and initiated while this infant industry struggled to begin anew, without the benefit of any federal oil shale leasing regulations, or any history of federal oil shale leasing at all. Permanent regulations were not required because the effort was limited and designed to provide the foundation for any future leasing program. Section 21 of the Mineral Leasing Act of 1920, a Nov. 30,1973 Federal Register notice, and the leases themselves constitute the legal and regulatory framework for leasing and developing prototype oil shale tracts. The prototype leases contain some unusual provisions including installment payments of the bonus bids, credit of early development costs against payments due the government, adjustment of royalty rates according to regional crude oil price fluctuations, and unusually extensive and detailed environmental stipulations. Several of the provisions were intended to provide incentives for early development and financial penalties for failure to develop. The requirement for minimum royalty payments in lieu of actual production royalties beginning in the sixth year of the lease falls in the latter category. After the sixth year, the required minimum payment is increased east year through the 15th year by an increment equal to that due in the sixth year. The minimum royalty then remains the same through the final five years of the primary lease term. Minimum royalty is calculates on a different production level for each prototype lease, based on the quantity of 125 L/t (30 gal/st) shale estimated to be recoverable from. each tract by room-and-pillar mining. That mining system was selected for reference as the only proven extraction method for oil shale at that time (early 1970s) The minimum royalty (production) rate was calculated for each tract by direct comparison of its estimated recoverable 125-L (30-gal) resource to a hypothetical tract containing 1.9 Gt (2.1 billion st) of recoverable 125-L (30-gal) shale. For the hypothetical lease tract, the minimum production for the sixth year was calculated to be 3.2 kt/d (3,500 stpd), increasing by a like amount each lease year through the 15th to a daily production rate of 31.7 kt (35,000 st). Under this formula, the hypothetical lease tract would yield $16 million in minimum royalty payments over the 20-year primary lease term if there were no production, no development credits taken, and no adjustment of the royalty rate due to fluctuation of regional crude oil prices. The production rate of 31.7 kt/d (35,000 stpd) was a somewhat arbitrary figure that was considered, in the early 1970s, to represent a minimum size for a commercial oil shale operation. A production rate of 7.9 dam3/d (50,000 bbls/day) soon supplanted that smaller mine production figure as a rule of thumb for the minimum size for a commercial facility. The proportional relation-

Jan 11, 1982

By Fritz Kleiner, Walter Meintrup

On Nov. 4, 1981 A/S Sydvaranger's 1-kt/h (1,100-stph) wet-process, iron ore ball mill completed its first four months of uninterrupted, full-load operation in Kirkenes, Norway. This 6.5-m-diam (21-ft-diam) mill is driven by a gearless ring or wraparound 8.1-MW (10,860-hp) motor at 13.1 rpm-a first of a kind in this segment of industry. This article examines reasons for selecting this type of drive over more conventional schemes, lists specific advantages of such large mills, and describes the installation in Norway. History For almost a decade, good operating experiences have been gained with 28 gearless ring motor drives in the cement industry, driving 2.5 to 4-m-diam (8.2 to 13-ft-diam) tube mills with drive powers ranging from about 3-4 MW (4,000 - 8,000 hp). Why then did the mineral ore processing industry hesitate until 1980 to adopt this successful concept for similar applications on ball, semiautogenous, and autogenous mills? There are a number of good reasons in the eyes of conservative mill builders and operators, the most commonly cited ones are: • No operating experience in this segment of specialized industry. • More severe environmental conditions in the wet ore grinding process. • An indifferent attitude of mill builders and electric motor manufacturers towards new drive technologies. • Limited confidence in solid-state power supply systems, such as frequency converters of the required size. There have been and still are numerous problems associated with low-speed geared mill drives of any kind, especially with individual motor/gear sizes approaching or exceeding about 4 MW (5,360 hp). Every mill builder knows about them, but operators learn to accept them as inevitable. The Decision to Change Three things combined to break this technological stalemate: the courage and progressive spirit of one major iron ore processor in Scandinavia, the cooperation of three experienced manufacturers, and an unusual application problem that could not be solved by any conventional approach. The last factor was surely the decisive one, but the first one does not come as a surprise either. The Swedes near Kiruna and the Norwegians around Kirkenes are experienced ore miners and processors, and much credit goes to them for technological breakthroughs in the industry. At A/S Sydvaranger in Kirkenes, above the Polar circle at about the latitude of Alaska's northern tip, the existing grinding facilities, with a total of 14 100 to 240-t/h (110 to 264-stph) ball mills, can not be expanded. Nevertheless, to increase mill throughput, only installing a larger mill in place of an existing smaller one was a practical alternative. For this replacement, the owners set requirements that seemed impossible to meet: • The old 100-t/h (110-stph) ball mill should be replaced with a new ball mill with 10 times the rated throughput, without significantly impairing the operation of the remaining mills, and without significantly changing the mill building. • The new mill should have a variable-speed drive to ultimately optimize the grinding process by means of a closed-loop process¬computer-controlled grinding cycle, and to minimize the specific energy consumption. • Availability, efficiency, and life expectancy of all new components must be higher than those being replaced. • Inrush-current and harmonic loads on the rather weak electric supply line must be minimized to ensure safe plant operation. All old ball mills at A/S Sydvaranger are the geared type, using single synchronous and wound-rotor, slow-speed motors with ring-and-pinion gears. Operators are familiar with the limitations and problems associated with such drives, and they are aware that the following items become major concerns when drive powers are drastically increased: • Gears are subject to wear and tear, require frequent maintenance, and eventual replacement of major parts. • Gears are sensitive to misalignment, overload, and thermal distortion, limiting their useful life. • On dual or quadruple drives, load-sharing and torque oscillations between motors can be a major reason for concern. • At these speeds, ring-and-pinion gears reach their torque transmission capabilities altogether at around 4 MW (5,360 hp) per motor/pinion. To obtain the desired variable-speed performance of the new drive, the only practical and economical conventional solution would have been a frequency-controlled, low- or medium-speed dual motor drive with about 8 MW (10,720 hp) of power. This, however, was not feasible because of limited floor space. Therefore, bids were solicited for the alternative drive method, the gearless ring motor. General Considerations Why are such large mills considered? After all, one could avoid all the problems by simply staying with smaller mill unit sizes. Under competitive pressures of free markets, however, grinding efficiencies and specific energy consumption become key factors in selecting new equipment. Specific energy consumption of ball mills decreases with increas-

Jan 9, 1982

By Bruce Bryant

Silver ore was discovered at Aspen in 1879, but the district did not reach full production until 1888 after lawsuits were settled and railroads furnished less expensive transportation to the outside world. The boom years were 1888-92; production declined thereafter. From the middle 1920's until 1950, the Midnight mine in the Richmond Hill district furnished most of the output in the Aspen quadrangle. Since 1950, little mining has been done at Aspen. The metals produced were silver, lead and zinc. Native silver dissolved from the sulfide ores was redeposited by waters circulating as deep as 300 m below the land surface, resulting in great secondary enrichment of many of the deposits. Over 100 million ounces of silver were produced in the Aspen quadrangle. Low-grade lead-zinc deposits remain between the old workings locally, and data available suggest that primary ore below levels mined is also of low grade. The ore occurs in the Mississippian Leadville Limestone and the lower part of the Pennsylvanian Belden Formation in sites that were made favorable for deposition by a number of stratigraphic and structural factors.

Jan 1, 1982

By E. H. Kurt

INTRODUCTION The simplest way to drill a hole into rock is to strike a steel chisel or drill bit with a hammer. Early miners used this elementary hand technique so successfully in "single jacking" and "double jacking" that the first mechanical rock-drill designers sought to duplicate it. However, in the early developments, the designers were forced to retreat to a construction known as the "piston drill," wherein the entire drilling element is tied to the piston and reciprocates with it. It took nearly 50 years to devise a method of divorcing the two elements and to achieve the original hammer principle used in hand drilling. The Mont Cenis tunnel, drilled through the French Alps in 1861, usually is considered the birthplace of the mechanical rock drill. The Hoosac tunnel in Massa¬chusetts was drilled at about the same time, and the success of these two ventures paved the way for innova¬tions that produced the Burleigh, Ingersoll, Sergeant, and Waugh piston drills between 1870 and the turn of the century. In 1897, George Leyner of Colorado introduced what has been considered the most significant development in rock-drill history. He devised the hollow drill steel for water flushing; when combined with his free-piston hammer drill, this became the first lightweight and dust¬free underground machine. In addition, Leyner's drills introduced improvements such as automatic rifle-bar rotation of the drill steel and chuck, automatic lubrica¬tion, and an enclosed throttle control. During the 1920s and 1930s, automatic feeds, centralizers, sliding cones, and the automatic water back head were developed, laying the groundwork for all pneumatic underground drills currently in use. Since these pioneering efforts, rock-drill development has been concerned primarily with refining the designs and improving the metallurgy to make faster, lighter, and more dependable machines. Fig. 1 illustrates the progress in drilling speed during the first 125 years of rock-drill development; that progress is a credit to the persistence and inventiveness of the designers in the rock-drilling industry. ROCK-DRILL CLASSIFICATIONS To meet the variety of conditions encountered in rock drilling, several distinct types of drills have been de¬veloped. In general, rock drills may be classified as either hand-held or mounted, with the hand-held ma¬chines including the jackhammer or sinker, the jackdrill or jackleg, and the stoper. The mounted drills are com¬monly known as "drifters." Table 1 shows that each type of drill is available in several sizes from different manufacturers. Fig. 2 illustrates a typical rock drill, showing the principal components. The jackhammer or sinker, shown in Fig. 3, is used primarily for general mine utility work such as drilling anchor holes (short vertical holes to bolt or anchor machinery), pin holes (short, usually horizontal holes to fasten sheaves, etc. to side walls), popholes (for blasting large boulders), and similar applications. They also are used for shaft sinking. Jackhammers are classified ac¬cording to weight, and they range from 7 to 30 kg (15 to 65 lb). The rock drill originally known as a jackleg was made by clamping a pneumatic cylinder or leg to a jack¬hammer, both to support the weight of the machine and to feed the tool forward in horizontal or uphole work. The more modern jackdrill refined this concept to make the hinged pivot for the leg integral with the drill cylinder and to group all drill and leg controls in the drill back head for convenience. Fig. 4 illustrates a typical jackdrill. Jackdrills are classified according to cylinder bore size, ranging from 60 to 83 mm (2.375 to 3.25 in.). Because of their light weight and versatility, jack drills are very effective in small drifts, small tunnel head¬ings, and stoping. The larger machines are applied to hardrock formations and in applications where drilling speed is a primary consideration. In soft formations or

Jan 1, 1982

By Hubert Erik Sherer

Determination of the best time to replace an aging unit of equipment is a recurring problem which is common to essentially all surface and underground mining operations. Virtually all mining equipment is subject to wear and the resulting deterioration that increases with equipment life. This mechanical deterioration results in lower availability and, thus, decreasing, production. Due to decreasing production and increasing repair costs, there is an optimum age at which the replacement of a given equipment unit with a new unit will result in the lowest cost per unit of production for the equipment operation in question (Figure 1). Determination of this optimum replacement age is further complicated by factors such as: possible overhaul alternatives, fleet replacement and expansion alternatives, remaining life of the mine, and technological improvements in the potential replacement or differences in the production capacities of these replacements. Determination of the optimum time to replace an equipment unit becomes more critical each successive year due to the rising capital costs of new equipment versus maintaining old equipment. An incorrect choice of the replacement age for an equipment unit can result in excessive costs to the mining operation. If a unit is replaced too early, the capital cost of the unit is not fully utilized; conversely, replacing a unit too late results in excessive maintenance costs and low production. The economic life of a piece of equipment is the equipment age that results in the lowest total discounted cost per unit of production for that piece of equipment, not considering the cost of future replacements. The economic life of a piece of equipment is usually shorter than the physical life, the maximum age at which a machine is capable of doing useful work. The optimum replacement age for a piece of mining equipment may vary from the economic life of that equipment due to the remaining life of the mine, fleet considerations, costs associated with potential replacement machines, and capital rationing constraints. For example, the equipment life of the current machine that may result in the lowest cost per unit of production might be 10 years; however, when the timing of the future replacement costs are entered into the calculation, a different life for the current machine might result in the lowest total cost per unit produced for the remaining life of the mine.

Jan 1, 1982

By Paul T. Alexander

After evaluating preceding studies and designs of lightweight supports, ESD selected the all-hydraulic and the hydromechanical concepts for detailed design and fabrication. Further analysis and testing showed that the all-hydraulic design was economically justified and met all the crucial engineering, manufacturing, and design criteria identified during the evaluation phase. Following Bureau of Mines approval of the detailed design, four all-hydraulic support models were fabricated. Once functional and structural testing was successfully completed, 40 additional units were constructed and distributed for in-mine testing. The units were very well-liked by all three demonstration mines. The wide- spread interest in supports for seam heights greater than 8 feet led to expansion of the design data package. ESD designed four basic models to cover the new height range, but no hardware has yet been fabricated for the new design.

Jan 1, 1982

By Paul R. Thomas

The Bureau of Mines evaluated the impact of the depletion allowance upon the economic availability of copper from domestic deposits. The potential long-run percentage depletion deduction, cumulated over the life of the properties, was estimated at approximately $2.5 billion for producing properties and up to $11.7 billion for nonproducers. The income transfer, in the form of higher Federal income tax payments if the allowance were repealed, was estimated at $1.5 billion for producing properties and up to $8 billion for nonproducers. The percentage depletion allowance, through its role in determining Federal income tax liability, was found to be very significant in affecting profitability. Repeal of the allowance could result in major domestic copper availability reductions at all price levels, now and in the future, as a result of reduced profit margins for current producers, and postponement of development decisions for nonproducers. It was demonstrated that a 50-percent reduction in the percentage depletion rate applicable to copper would also result in a significant decrease in profitability for nonproducing properties. For producing properties, the percentage depletion rate on copper was shown to be less significant than the income limitation that is placed upon the total amount of the depletion deduction. Repeal of the minimum Federal tax provision was shown to be significant in enhancing profitability for both producing and nonproducing deposits. The report concludes that the percentage depletion allowance operates as an important method of capital recovery and production incentive.

Jan 1, 1982

Although mining, particularly of gold and coal, played a significant role in the development of New Zealand, from the time of the spectacular gold rushes of the 1860s its economic importance to the country as a whole has decreased substantially since that time. Gold, coal and non-metallic agricultural and industrial minerals have been found in economically significant quantities, however, the search for base metals has not been successful.

Jan 1, 1982

By Neil D. Policow

Dewatering of the fine clean coal fraction, - 28 mesh (595 microns) represents one of the most difficult and costly separations in typical plant circuits. Since 1969, the Screen Bowl Centrifuge has offered an economical alternative to filtration/thermal dryer combinations. The performance of Screen Bowl Centrifuges has been continuously modified and improved to dewater not only coarser coals, but also today's variety of ultrafine material. Actual test comparisons with alternative methods show the Screen Bowl Centrifuge to be most cost effective and efficient when all factors are considered.

Jan 1, 1982

By Catherine C. Kilgore

The Bureau of Mines investigated the availability of manganese from known domestic occurrences. Eight of these deposits were found to have demonstrated resources totaling 420 million metric tons with an average grade of 10 percent contained manganese. They were found to be submarginally subeconomic. Economic evaluations of the eight deposits resulted in incentive prices ranging from $8 to almost $35 per long ton unit (22.4 pounds) of contained manganese. Comparing these prices with the current market value of $1.70 per long ton unit of manganese clearly illustrates the submarginal nature of the domestic ores analyzed. These domestic resources would probably not be developed except in the case of an extreme national emergency. Production from the eight deposits would take 3 to 6 years to develop, and the final product would be manganese ore concentrate, which could be used in the production of ferromanganese. If preproduction development began in 1981, annual production would peak in 1987 with 900,000 metric tons of recoverable manganese. Thereafter, production would see a steady decline unless additional resources were located or technologic improvements were made to allow processing of lower grade material, or unless mining and processing of ocean manganese nodules began to take place.

Jan 1, 1982

By Richard B. Stein

This paper will present an overview of several hydrometallurgical processes which can be used for sea-nodule metal recovery and some simplified economics. Before going any further, here are some of the basic figures from which the economics were developed. The first is to establish a representative composition for a typical nodule feed (Slide 1). This set of chemical analysis figures can be taken as typical for a deep Pacific nodule feed and shows manganese at 30%, copper at 1.1%, cobalt at 0.2%, nickel at 13% and iron at 10% for the metals of economic interest1.

Jan 1, 1982

By James H. Boettcher

INTRODUCTION A complex interaction of worldwide economic and political forces is increasingly requiring 3 primary participants for the successful development of large natural resource projects in developing countries. They are the host government of the developing country (the "host government"), one or a consortium of international natural resource companies, (the "Resource Company") and one, or more likely, a syndicate of international lenders. The host government typically controls the rights to its country's natural resources and establishes the economic ground rules for their development. However, because of worldwide inflation and the depletion of easily accessible, high-grade resources, the nominal and real capital development and operating costs of projects have been spiraling. Moreover, the depletion of high-grade and mineralogically uncomplicated resources also raises the technical and operating risks associated with resource recovery. Thus, despite increasing political self-consciousness and economic nationalism in developing countries, international resource companies are still often necessary project sponsors since they can provide, among other things, the required technical and management expertise and equity capital. The presence of these factors, and often the addition of worldwide market access in a project, is often critical in determining whether or not the project will be considered creditworthy by international commercial lenders. The international commercial lender is often the critical third party in project development, due in a large part to the ever escalating-costs of project developments relative to the financial resources of many companies and even a growing number of countries. In addition, lenders have other reasons for taking more than a passive interest in all aspects of a project's development. These reasons include the following: 1. Projects are often financially structured such that the primary security for a loan, once completion and performance standards are met, is the cashflow of the project rather than recourse to its sponsors. 2. Lenders, in addition to the "project risk" just described, are frequently asked to assume various elements of "political" risk which nay put them in a sensitive economic position between the host government and international resource firms (This is discussed later). 3. International banks today have large loan portfolios of developing country debt with final maturities ranging from one to fifteen years. The various current projects undertaken are the building blocks of most developing country economies that will hopefully contribute to the long run economic development of a country as well as generate the foreign exchange necessary to repay foreign loans in the future. In this regard it is useful for lenders to realize whether a given project "makes sense" in terms of a country's natural resource endowments and competitive advantages over other countries. The type of framework discussed in this article would help lenders to better make such assessments. In order to facilitate the continued international flow of capital and technology to developing countries and of readily available supplies of raw materials from them, it is important for each of these three parties to increase its awareness of the goals and objectives of the other parties as well as the bargaining process that results in the legal, financial, credit and fiscal structures by which a joint venture project ultimately proceeds. Each of the parties faces increasingly complicated accept/reject decisions when they are faced with difficult choices among. a wide range of alternative structural combinations each of which has different implications for risk and reward to them. Therefore, by increasing the mutual, 3-way awareness of the decision processes of the other parties, it should be possible to: • provide better information and results in the formation of more rational expectations by all parties going into negotiations, • facilitate the project formulation process by allowing parties to focus more clearly on the areas of common interest and conflict, • result more frequently in final structures and agreements that better reflect the economic and political realities associated with a project and thus • result in more creative, innovative agreements that should reduce the need for changes to them and thus promote the kind of long run political stability conducive to attracting capital and further investment.

Jan 1, 1982

By Kumara S. Rachamalla

Long-term stability, appropriate taxation and incentive policies are essential to attract and stimulate investment in the mineral sector. An outline of Ontario's $4.6 billion industry and associated tax incentives is presented. Producers are offered incentives under The Mining Tax Act, federal and provincial income tax acts for exploration and development by reducing Me after tax cost to 13-25¢ for each dollar spent. The Mining Tax Act provides generous processing incentives which have positive effects in enhancing investment and economic advantages of building processing facilities. Non-mining companies and entrepreneurial individuals can receive 25% of eligible exploration expenditures in grants/tax credits under the Ontario Mineral Exploration Program.

Jan 1, 1982

Argentina follows Venezuela and Mexico as the largest producers of crude petroleum and natural gas in Latin America. Argentina 1S practically self-sufficient in fuels, but relies substantially on imports for its supply of copper, iron ore, ferroalloys, sulfur, and fertilizers. Mining activity is limited and is in an incipient stage of growth, considering the country's potential for mining. Most nonfuel mineral output in 1979 consisted primarily of minerals used for construction, while only 9% are other nonmetallic, and 2% are metallic minerals. Argentina is Latin America's major producer of boron minerals and uranium (yellow cake). Mineral exports consist primarily of borates, uranium concentrates, and of late, some tin. These exports have in the past been shipped mostly to Great Britain. London banks have been involved in arranging financing for St. Joe Minerals Corp. IS planned development of the El Pachon copper deposit (see map), and were being counted upon to also back the development of large copper and manganese projects. The following is a review of Argentine mineral production in 1979: (For 1981, the production of boron minerals is put at 167,000 metric tons and uranium at 300,000 metric tons.)

Jan 1, 1982

By Robert L. Grayson

An application of goal programming (GP) in evaluation of proposed purchases of major mining machinery is presented. It incorporates historical operating data compiled on mechanical delays to production time. The goal programming technique, which is an extension of integer programming, is used to maximize an objective function. The objective function combines the capital budgeting evaluation methods of net present value, payback period, profitability index, and total net earnings as goals weighted according to a management preference. The GP method gives an optimal solution to a multiple-goal problem. A sensitivity analysis is performed to determine the effect of an increased production forecast or a tightened budget on proposal selection.

Jan 1, 1982