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By Herbert R. Babitzke

The Minerals Availability System (MAS) was formally established by the Bureau of Mines in May 1975 to provide current appraisals of the engineering and economic availability of nonfuel minerals for consideration in the formulation of both domestic and foreign minerals policy, Domes- tic mineral property reports are developed by the Bureau's four Field Operations Centers, and foreign data are obtained under contract. This site-specific information is subsequently subjected to engineering verification and economic evaluation, and the results are analyzed and published as Minerals Availability System Appraisals. The deposit-specific data are also entered into the computerized MAS data base, where a subset of this information, the Mineral Industry Location System (MILS), is available to the public in the form of computer graphics and listings. Other MAS products are also described. The Bureau's MAS personnel are frequently involved in special engineering and mineral economic projects for other Federal and State agencies. MAS personnel also work closely with the private sector, both in the area of mining and processing cost estimation, and as a source of nonproprietary mineral deposit information.

Jan 1, 1982

This section of Minerals and Materials analyzes the following three factors affecting the recent performance of the U.S. and world mineral industries: 1) the health of the U.S. and world economies, 2) the level of interest rates and 3) the performance of productivity in both the U.S. mineral industry and the general economy. While these indicators do not exhaust the possible critical factors, they represent an initial attempt to probe some of the considerations underlying the performance of the U.S. minerals and materials industry. The U.S. and World Economies It is essential to analyze the state of the U.S. and world economy because the demand for minerals and materials is a derived demand; that is, since minerals and materials are used in the productive process, the demand for them is a direct function of the demand for the finished products of which they are a basic input. Thus, the demand for minerals and materials is directly affected by changes in present and planned consumption and investment expenditures. The past two issues of this publication have highlighted the generally discouraging performance of the national and inter-national economies. Briefly, the world economy is in the third year of the first long recession in recent history where inflation rates have remained above 5 percent. With many countries either unable or unwilling to support domestic spending while inflation continues, there has been a growing tendency to institute trade-restrictive policies to support domestic demand. The resulting weakened demand conditions in exporting nations have had a direct effect on the mineral industry.

Jan 1, 1982

By Robert B. Parsons

"Several recent cases indicate that the Courts may be leaning toward a more favourable treatment of mine closing and related costs. In this article, we look at two recent cases, Burnco Industries Ltd. and Nomad Sand & Gravel Ltd. The former was heard before the Federal Court - Trial Division and the latter before the Tax Review Board.It appears that in certain situations mining companies may now be able to sustain current deductibility of estimated mine closing costs during the productive years of the mine, rather than waiting until either the date on which mining ceases or the reclamation and similar activities commence. This would be of great benefit to the mining industry, as waiting until the bitter end often means that there are no revenues available against which the expenses may be offset and, hence, no tax relief.IntroductionUnder the Income Tax Act in Canada, taxpayers are not permitted any deductions in respect of an outlay or expense in determining income from a business or property, except to the extent that such expenditures are made or incurred by the taxpayer for the purpose of gaining or producing income. In addition, no deductions are permitted for amounts transferred or credited to a reserve, contingent account or sinking fund except as expressly permitted by the Act.In large measure, these provisions are relevant to the mining industry to the extent that they determine the periods during which expenses may be charged against revenues for income tax purposes. Several recent cases have indicated that the Courts are leaning toward a more favourable treatment of accrued costs in the mining industry than was previously considered to be the case."

Jan 1, 1982

By Phillip N. Yasnowsky

This Bureau of Mines report summarizes State severance taxes imposed on minerals and mineral fuels, provides a hypothetical example of how a State severance tax affects selected components of a firm's income statement, and uses the Bureau's Minerals Availability System (MAS) to estimate the effect of assumed changes in State severance tax rates on copper recovery cost at given levels of potential copper availability. A reduction of the rates to zero or a doubling of them results in changes in costs that are of the same order of magnitude as the cost of transporting copper to the United States from major foreign producing countries.

Jan 1, 1982

By Ludwig Strah

"The paper outlines the history of rubber mill liners beginning with the awarding of the first North American patent rights in 1923. It includes the early-day applications and installations of the 1920s and 1930s through to their present-day application. Over-all rubber mill liner design is discussed in relation to present day installations employing rubber mill liners in various grinding applications. A brief overview is given of a manufacturer's procedures to produce rubber mill liners.IntroductionIn early 1910, it became apparent that the productive life of the silver mines in Cobalt, Ontario, could be substantially prolonged by mining lower-grade ores.The mining of lower-grade ores required the establishment of treatment facilities which initially employed jaw crushers, stamp mills, jigs and concentrating tables. The recovery of silver in other than a coarse metallic form required the additional step which was introduced at that time: the cyanidation of silver concentrates from the tables. The resultant requirement for increased and improved recovery led to the introduction of grinding mills, i.e. tube mills.Shortly after the introduction of the tube mills to the Nipissing Mine's mill in 1914, the idea of using rubber as a mill liner material was spawned. However, no action was taken due to the advent of World War I. It is interesting to note that the idea of rubber mill liners emanated from having used pieces of solid rubber tire as an emergency repair on a set of liners when a liner had broken and no immediately available spare was on site.The credit for this ingenuity and subsequent application for a patent on rubber mill liners falls to James John Denny, the mill superintendent, and Rolla Barnum Watson, the general manager of Coniagas Mines Limited. The patent application was formally made on December 3, 1921. The U.S. Patent Office issued Patent No. 1,470,597 on October 16, 1923."

Jan 1, 1982

With IIT research institute as a cosponsor, this seventh mineral waste Utilization Symposium was funded by the Bureau of Mines through its Division of Mineral Resources Technology. Environmental scientists and engineers from five countries (Canada, Netherlands, Austria, England, Guatemala) besides the United States participated in the symposium, which was held Oct. 20-21, 1980, at the Chicago campus of IIT Research Institute. Of the 25 papers presented on the reclamation and recycling of mining and mineral wastes, municipal solid waste, industrial waste, and scrap metal, 21 are summarized herein.

Jan 1, 1982

By Walter R. Hibbard

Precipitation in the northeastern United States, Florida, California and in many industrialized areas of the world is now more acidic (lower pH) than can be accounted for by natural causes. At the same time, the acidity of many lakes and streams in the northeastern United States has been measured and found to be similar to that of actual rain. These facts have led to conclusions that the two conditions are related. Coal burning utilities, 700 to 1000 miles upwind, have been accused of being the cause, leading to proposals for strict emission controls on the alleged offenders. The costs of these controls would place an estimated $10 to $15 billion capital burden on utility customers in about 15 states plus $2 to $6 billion annual operating costs. There appears to be no direct well-established scientific evidence that the accused are guilty but that the indictment is based largely on circumstantia1 evidence. This study examines the evidence, describes the situation and proposes what must be done to reduce the acid precipitation in an orderly cost beneficial manner. It is interesting to observe that studies by the different adversaries on the acid precipitation issue come to different conclusions largely because they do not read the same literature, but selectively develop evidence to support their own points of view, This study will try to review the issues impartially and reach a position of scholarly balance.

Jan 1, 1982

By Jim F. Lemons

The Bureau of Mines Minerals Availability System collected and analyzed data for 34 nonlaterite and 9 nickeliferous laterite domestic chromite deposits in order to assess their viability as sources of chromium under present technologic and economic conditions. These 43 deposits, none currently in production, contain approximately 6.3 and 22.3 million metric tons of Cr203 at the demonstrated and identified resource levels, respectively. Approximately 4.6 and 15.6 million metric tons of Cr203 are recoverable at the demonstrated and identified levels, respectively, for the 34 nonlaterite deposits. None of these resources are economically recoverable at January 1981 market prices. Production of metallurgical-grade chromite (market price $128 to $144) would require a minimum chromite market price of $237 per metric ton. Chemical-grade chromite production (market price $74 to $85) would require a chromite market price in excess of $188 per metric ton. From the 34 nonlaterite deposits, roughly 5.4 and 17.6 million metric tons of ferrochrome could be produced at the demonstrated and identified resource levels, respectively; however, a minimum market price of $770 per metric ton of ferrochrome would be required to stimulate production. The nine nickeliferous laterite deposits were not evaluated through production stages because of uncertainties in process technology and cost.

Jan 1, 1982

By John C. Brower

The purpose of this paper is to examine the Gays in which- the policies of the U.S. government, mining companies and third world countries affect each other with regard to the availability of minerals. The interaction involves U.S. policy towards the mining industry, the policies of the companies themselves, and the policies of third world countries towards the U.S. and multinational companies. It is assumed in this discussion that U.S. policy will continue to be to seek certain minerals from abroad rather than attempt to develop domestic sources for all its requirements. This would seem to make sense both from the standpoint of cost, and for preserving what domestic resources there are so as to maintain some degree of market leverage. In today's jargon, this means greater dependency on the "third world", which, for this discussion, includes virtually all the nations in Africa, South America and Asia. Concern for availability raises the important distinction between dependency and vulnerability, and as the Director of the Bureau of Mines has pointed out, the two are not the same. Dependency is not neccessarily a bad thing; it is vulnerability that counts (Norman, 1980)

Jan 1, 1982

By Wilfred Walker

A working hypothesis is presented herein mineral belts are split as all world oceans opened. Rather than plate tectonics, expansion is favored as the most recent expression of the sequence of convecting systems in the Earth's mantle. Throughout the geological record this sequence has produced similar mobile belts. This similarity lends itself to both stratigraphic classification and the theme of mineralization in mobile belts demonstrated by Y. A. Bilibin. Crustal evolution should, therefore, serve as an important guide in understanding Pacific mineral belts.

Jan 1, 1982

By Michael S. Koleda

Less than two years ago, the, Congress, with broad bipartisan support, passed the Energy Security Act of 1980. A decade marked by ten- fold increases in world oil prices and two major interruptions in oil flows from the Middle East had ended. An all-out national commitment to transform America's vast tar sands, oil shale and coal resources into conventional fuels had begun. The national synfuels effort was to be public-private cooperation at a scale unmatched in peace time. Private industry would own and operate the synthetic fuels facilities. Government would reduce market uncertainties to acceptable levels. The potential government commitment was substantial. Up to $88 billion would be available through the Synthetic Fuels Corporation, principally in the form of contingent financing. Billions more would be spent through Department of Energy programs. Additional incentives for alternate energy development were contained in the Energy Tax Act of 1978. The Energy Security Act clearly specified national synthetic fuels production objectives: 500,000 barrels per day by 1987 -- 2 million barrels per day by 1992. Finally, said Congress, Uncle Sam was going to do something about rapidly rising oil prices, uncertainties of energy supply, and the resulting disruption to the U. S. economy. Simply put, the purpose of the Energy Security Act of 1980 was to provide government guarantees sufficient to get synthetic fuels projects off the private sector drawing boards and into commercial production. Because of their huge cost, technological uncertainty, and lengthy pay-out period, these projects were always second place to projects of smaller size, known technology and more rapid pay-out. The Energy Security Act was the legal expression of public policy to bring the free-market synfuels timetable into line with the faster paced political timetable in the interest of national energy security.

Jan 1, 1982

By Forest Mintz

Many oil and gas producers find it advantageous to borrow against the value of their hydrocarbon re- serves. This paper considers the requirements for a reserve based loan and the calculations that a bank would perform to arrive at a loan amount. Three of the most common loan structures, i.e. a term loan, a production payment, and a revolving credit/term loan will be discussed. A typical outline for each type of loan is presented. Finally, a comparison of major considerations in the three financing techniques is shown.

Jan 1, 1982

By Herbert P. Haschke

I. Changes made by the Economic Recovery Tax Act of 1981 (ERTA) which have an effect on investing in tax shelter investments A. Maximum ordinary income tax rate on individuals is now 50%. B. Maximum tax rate on long-term capital gains for individuals is now 20%. C. Maximum tax rate on alternative minimum taxable income for individuals is now 20%. D. Although not changed, the "add-on" 15% minimum tax on tax preference items and the possibility of paying the alternative minimum tax cause individual U.S. income tax planning to continue to be very complex. II. Real Estate A. The new Accelerated Cost Recovery System of depreciation (ACRS). 1. Mandatory for assets placed in service after 1980. ACRS will eliminate most if not all controversies with the IRS over depreciation. 2. Real property now depreciated over 15 years. Component depreciation is not available. 3. Accelerated depreciation is available - a 175% declining balance method with an automatic shift to straight line method at the optimum point in the asset's life. Alternatively, a taxpayer can elect to use the straight line method.

Jan 1, 1982

By Anthony G. Reid

INTRODUCTION At the time of the death of Mao Tse-tung in 1976, China was a major oil producing country with a daily oil flow in the order of 1.735 million barrels. This position had been achieved with minimal assistance from the outside world. Further, only some fifteen years had elapsed since the country's daily oil production capacity had hovered at the barely significant level of one hundred thousand barrels. Why then did the new leaders of China, after this very creditable record of success, suddenly change the direction of the country's drive for future hydrocarbon production? First, by switching much of the emphasis of exploration from onshore to the offshore continental shelf basins, and further by apparently abandoning the philosophy of self reliance calling upon the world's oil industry to share in the task of locating and developing these potential offshore energy reserves. The answer is probably only partly understood by those of us outside China, However, a number of factors exerting an important influence on this decision can be identified. THE MOVE OFFSHORE The new leadership was anxious to rapidly move China into her rightful place amongst the powerful and technologically advanced nations of the world. Modernization became the slogan, specifically modernization on four fronts, agriculture, industry, technology and military with the goal to "catch the west by the year 2000". But how to generate the capital to finance this massive modernization program? The rapid escalation of the price of crude oil following the 1973 Oil Embargo and the continuing apparently insatiable world demand for this now extremely precious primary resource was very clear to all. China, as a major producer, could export crude to help finance the ambitious development programs of the government. To do this, however, would require a very significant in¬crease in present production capacity, as the domestic demand even for China with her relatively low per capita energy consumption, is essentially equal to the current production. Trying to rapidly move the new regime's programs into actions, one can only assume that the planners looked at the success of the petroleum industry over the preceding fifteen years and quickly concluded that this well established curve could be maintained and indeed steepened with an increase in effort. The rapid discovery of a few more Daqing's (China's premier oil field, producing one million barrels a day) would have the country's ambitious modernization goals within reach. Petroleum would At the time of the death of Mao Tse-tung in 1976, China was a major oil producing country with a daily oil flow in the order of 1.735 million barrels. This position had been achieved with minimal assistance from the outside world. Further, only some fifteen years had elapsed since the country's daily oil production capacity had hovered at the barely significant level of one hundred thousand barrels. Why then did the new leaders of China, after this very creditable record of success, suddenly change the direction of the country's drive for future hydrocarbon production? First, by switching much of the emphasis of exploration from onshore to the offshore continental shelf basins, and further by apparently abandoning the philosophy of self reliance calling upon the world's oil industry to share in the task of locating and developing these potential offshore energy reserves. The answer is probably only partly understood by those of us outside China, However, a number of factors exerting an important influence on this decision can be identified. THE MOVE OFFSHORE The new leadership was anxious to rapidly move China into her rightful place amongst the powerful and technologically advanced nations of the world. Modernization became the slogan, specifically modernization on four fronts, agriculture, industry, technology and military with the goal to "catch the west by the year 2000", But how to generate the capital to finance this massive modernization program? The rapid escalation of the price of crude oil following the 1973 Oil Embargo and the continuing apparently insatiable world demand for this now extremely precious primary resource was very clear to all. China, as a major producer, could export crude to help finance the ambitious development programs of the government. To do this, however, would require a very significant increase in present production capacity, as the domestic demand even for China with her relatively low per capita energy consumption, is essentially equal to the current production. Trying to rapidly move the new regime's programs into actions, one can only assume that the planners looked at the success of the petroleum industry over the preceding fifteen years and quickly concluded that this well established curve could be maintained and indeed steepened with an increase in effort. The rapid discovery of a few more Daqing's (China's premier oil field, producing one million barrels a day) would have the country's ambitious modernization goals within reach. Petroleum would be the principal bridge to the bright future. The next decision involved the question of where to look for these vast new reserves. Chinese exploration teams had already looked at most of the onshore sedimentary basins and, while they were the first to admit that there was much yet to do, it was fairly clear to them that the potential for large new accumulations was confined to two areas: the little explored, remote, inhospitable regions of western China, principally Xinkiang Province and the equally unexplored offshore basins of the continental shelf and slope. In both cases China faced a very serious problem. The inhospitable environments were severely straining her petroleum industry's current technological ability to cope, particularly as the government needed rapid results. Thus the pragmatic and, to the foreign oil industry, unexpected decision to invite cooperation with the outside world. The reasons for the initial emphasis on the exploration of the offshore basins with the cooperation of foreign oil companies are again supposition on my part, but probably involved considerations of technical merit, ease of development and delivery to markets together with more sensitive issues such as controling the influence of foreign philosophies and values on the Chinese population by containing most foreign activity to the offshore. So within three years of the death of the great helmsman, China had developed a plan to involve foreign oil companies, both state and private, in a grand plan to rapidly increase the nations oil production. In fact, by this time, the first round of talks had been concluded and the first phase begun, and what a beginning. Some forty eight companies from thirteen countries had signed documents to participate formally in this world scale event. It was far easier to list those companies which did not participate than to list those which did. FOREIGN COMPANY INTEREST Why the rush by the world's oil industry to be involved in China? What was China offering which made everyone so anxious to join in? Again the answer is complex in detail, but principally involved a combination of factors which together caused this virtual stampede. Timing was a major element. Oil Companies, despite an ever increasing take by governments, were beginning to benefit. from the' rapid escalation of crude prices induced by OPEC and were looking for suitable areas to reinvest these funds. Producers

Jan 1, 1982

By R. N. Johnson

This report is a summary of the work performed for the Bureau of Mines to evaluate the feasibility and desirability of a movable in-pit crusher combined with conveyors to substantially reduce or eliminate truck or train haulage in large open-pit non-fuel mineral mines. The report includes an introduction and summary of previous work, an analysis of movable crusher system components, a description of the selected system, a review of possible movable crusher system applications, and finally requirements for future work to bring about the general availability of such systems. It was clear from the program that there is a real need for movable in-pit crushers.

Jan 1, 1982

By Richard E. Thill

The Bureau of Mines' Oil Shale Data Bank (OSDB) was created in 1976 to serve as a centralized source for the storage, retrieval, and dissemination of technical literature, patents, and information on research projects in oil shale. Thousands of bibliographic references, patents, and research projects relating to the mining of oil shale have been identified, abstracted, and indexed according to selected keyword topics. The resulting data bank listings are contained in three sections, each with a separate keyword breakdown for use in rapidly identifying references pertaining to a specific subject. All references cited in the OSDB were published prior to an established cut-off date of May 1, 1981, when a redirection of Bureau of Mines programs resulted in the loss of project funds and the subsequent phasing-out of data bank operations. ACKNOWLEDGMENTS The oil shale data bank listings are the result of a team effort of the project staff. The contributions of Jimaleen Jansma for keypunching, information acquisition, and data entry, and John Brandenburg and Sandra Brake for keywording and information acquisition are gratefully acknowledged. Appreciation is expressed to the staff members of the Smithsonian Science Information Exchange, Washington D.C. for their cooperation in supplying data on recent research projects in oil shale for inclusion in the OSDB listings. Appreciation is extended also to the staff of the Gallegos Research Group for assisting with computer services to obtain the final printouts and transfer of files onto magnetic tape.

Jan 1, 1982

By Lloyd A. Morley

This seven-chapter document is the first volume of a two-volume report that presents a comprehensive outline of coal-mine electrical power systems from theory to practice. Together, the two volumes contain the vital aspects that go into planning and designing a mine power system. After a short introductory chapter, Chapter 2 discusses the history of electrical use in mining and introduces "typical" mine- power-system arrangements. Chapter 3, 4, and 5 supply basic information on electrical theory, circuit analysis, and motors. Next, the Grounding and Distribution Chapters detail unique aspects of mine power systems. Elements of surface and underground use are included in all these chapters. An index concludes Volume I and is cross-referenced to both report volumes.

Jan 1, 1982

By Paul M. Hall

In the last several years, the coal mining industry has made significant changes in the design of longwall mining systems to make them more productive. Some changes, such as increasing the length of the coal faces and increasing the capacity of the face conveyors, have resulted in problems with achieving sufficient motor torque to start and operate the longwall face conveyors. Other changes, such as increasing the size and/or decreasing the percent impedance of longwall power center transformers, have resulted in problems with the short-circuit currents on the transformer secondaries exceeding the interrupting ratings of the molded case circuit breakers used to protect the secondary circuits. A survey of 24 longwall mining systems in northern West Virginia was conducted to investigate both problems. The results of the survey are presented and analyzed. Several recommended solutions to the problems are presented to enable the coal mining industry to design safe and productive longwall mining systems.

Jan 1, 1982

By Richard E. Thill

The Bureau of Mines' Oil Shale Data Bank (OSDB) was created in 1976 to serve as a centralized source for the storage, retrieval, and dissemination of technical literature, patents, and information on research projects in oil shale. Thousands of bibliographic references, patents, and research projects relating to the mining of oil shale have been identified, abstracted, and indexed according to selected keyword topics. The resulting data bank listings are contained in three sections, each with a separate keyword breakdown for use in rapidly identifying references pertaining to a specific subject. All references cited in the OSDB were published prior to an established cut-off date of May 1, 1981, when a redirection of Bureau of Mines programs resulted in the loss of project funds and the subsequent phasing-out of data bank operations. ACKNOWLEDGMENTS The oil shale data bank listings are the result of a team effort of the project staff. The contributions of Jimaleen Jansma for keypunching, information acquisition, and data entry, and John Brandenburg and Sandra rake for keywording and information acquisition are gratefully acknowledged. Appreciation is expressed to the staff members of the Smithsonian Science Information Exchange, Washington D.C. for their cooperation in supplying data on recent research projects in oil shale for inclusion in the OSDR listings. Appreciation is extended also to the staff of the Gallegos Research Group for assisting with computer services to obtain the final printouts and transfer of files onto magnetic tape.

Jan 1, 1982

By Jim F. Lemons

INTRODUCTION A nickel doesn't buy much anymore. That's even true in the cost of recovering nickel -- the commodity. A 5[C] per pound (11 [c] per kilogram) increase in the nickel price won't cover a 10-percent increase in fuel costs for processing laterite ores, nor will it cover a 10- percent increase in wages for recovering nickel from a sulphide ore. It won't even cover a 5- percent increase in the capital cost necessary to mine and process ocean nodules. The basis for this statement and a quantitative analysis of the variations in costs to recover nickel from different types of nickel ores will be discussed in this paper. During the early part of the 1970's, the interest in nickel and its potential development was shifting from Canada to the Pacific Basin area. Canadian growth rate was slowing and each additional increase in nickel capacity was very expensive (Argall, G.O., 1970). Laterite ores were attractive to developers since they were easy to mine at a low labor cost, and technologies were being developed that would allow the recovery of nickel in marketable forms (Mohide, T.P., Warden, C.L., Mason, J.D., 1977). During the last decade, new laterite production was achieved in the Philippines and Botswana, and a significant increase in production from Indonesia and New Caledonia occurred. However, recent reports on nickel identify numerous problems plaguing the industry, i.e., high energy costs that are forcing shutdowns (INCO, 1980), (Mohide, T.P., Warden, C.L., Mason, J.D., 1977), high Canadian sulphide mining labor costs (Anon., 1976), and rapid inflation of nickel capital costs (Anon., 1981b). No definitive study has been made to determine how sensitive the total cost of production is to rising energy, labor, or capital costs, or to identify to what extent increased byproduct revenues could be used to offset these production costs. The purpose of this paper is to quantify the effects of increases in energy, labor, capital costs, and by-product credits on the future cost of production from nickel reserves and/or resources. METHODOLOGY OF ANALYSIS In order to evaluate the sensitivity of nickel production costs to changes in energy, labor, and capital costs, and in byproduct revenues, an analysis was made of existing and proposed nickel operations, their costs, and their sensitivity to change. The data for these analyses were obtained from numerous sources including international govern¬ment and university publications, professional journals, company reports, private communications, U.S. Bureau of Mines contracts, and estimates by Bureau of Mines personnel. These data were collected, in part, as an ongoing effort of the U.S. Bureau of Mines Minerals Availability System (MAS) to systematically measure and classify identified mineral resources according to their respective extraction technologies, economics, and commercial availability. The MAS Program is currently evaluating the present and potential availability of nickel to the United States in relation to mining, beneficiation, smelting, refining, leaching, transportation, infrastructure, environment, land use, labor, productivity, technology efficiencies, operating capacities, deposit life, and political factors. As a summary of this data, the following briefly describes nickel ore types as each relates to energy, labor, capital, and byproducts. Sulphide Operations Nickel is currently available from sulphide deposits. Roughly 55 percent of the current world nickel production in market economy countries is from sulphide ores, although only about 20 percent of the known land-based nickel reserves and/or resources are sulphides (INCO, 1981). In 1979, the Western World sulphide reserves were estimated at about 9.2 million metric tons of nickel (Little, A.D., 1979). Sulphide ores are typically mined underground, thus resulting in high mining costs; however, these ores can often be upgraded by flotation prior to final nickel recovery and require about one-third of the energy required to recover nickel from laterites (Anon., 1981c). In addition, nickel in sulphide ores may be associated with economically recoverable byproducts, which include copper, cobalt, gold, silver, and other precious metals. Laterite Operations Forty-five percent of current nickel production is from laterite deposits. Laterite deposits account for 80 percent of the known land-based nickel reserves and/or resources (INCO, 1981). In 1979, the Western World laterite reserves were estimated at over 35 million metric tons of nickel (Little, A.D., 1979). Nickeliferrous laterites are residual soils formed by weathering, typically under tropical or near tropical conditions. They can be easily mined by open-cut methods, but generally cannot be beneficiated; thus, recovery of nickel must entail processing of the total mined ore. Usually, these ores have high moisture content (20 to 30 percent by weight) that result in additional fuel costs to dry the ore. Nickel silicates, garnierites, are, processed by pyrometallurgical methods; limonite nickel oxides are normally leached. Byproduct cobalt is not recovered from most ferronickel operations, and is only recovered to a limited extent from many leach operations.

Jan 1, 1982