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By W. N. Hoskins

This report covers the final results of a two-phase contract study conducted between July 1974 and October 1976. A comprehensive summary of the initial phase of the study is included. Phase I of the study involved the investigation and evaluation of all potential candidate underground systems for mining the deeper deposits of oil shale and associated minerals in the Piceance Creek basin of northwestern Colorado. Phase II called for the refinement and the detailed technical and economic analysis of the most promising system or systems, thus disclosed. Of the several systems initially investigated and evaluated, four Showed considerable merit for exploiting the deeper deposits: (1) chamber and pillar mining with spent shale backfill, (2) sublevel stoping with spent shale backfill, (3) sublevel stoping with full subsidence, and (4) block caving mining using LHD's. Final refinement and analysis of these four systems indicated their technical feasibility over at least part of the range of conditions expected in the deeper deposits. Their economic feasibility also was indicated under certain operating and market conditions. A variety of engineering, production, and cost information is provided on each of these systems.

Jan 1, 1976

By James L. Ash

This report contains the results of a technical and economic evaluation of conceptual systems for the underground mining, rubblization, and in situ retorting of deep oil shale deposits. Study efforts were first directed towards evaluation of the applicable geology, associated minerals, rock mechanics, in situ retorting, access mining, ventilation, rubblization, safety, and environmental impact factors. Conceptual systems were synthesized and then evaluated against these factors from both a technical and limited economic viewpoint. The results of these evaluations were then analyzed and, based upon this analysis, the following two systems were selected for further study: System II: Room and Pillar-Vertical Drill and Blast System IV: Tunnel Boring-Horizontal Ring Drill and Blast Due to the large number of variables to be considered, a computer program was developed and utilized to provide data for the cost trade-off studies and economic analysis. Results of the early computer runs indicated the value of the tool available? in the computer program and led to an extension in the contract to determine the sensitivity of the systems to several of the more apparent significant variables. These results in turn led to a refinement in the design assumptions and a better understanding of the technical and economic options available to an owner-operator of a Vertical Modified In Situ Shale Oil Extraction System. This report is submitted in fulfillment of the requirements of Contract Number 50241073 by Fenix & Scisson, Inc. to the Denver Mining Research Center, United States Department of the Interior, Bureau of Mines. Work was completed as of November, 1976.

Jan 1, 1976

The contribution of minerals to the growth and development of the United States is best demonstrated by the uses which have evolved during the past two centures. During pre-Revolutionary days the colonies were essentially agricultural in character, producing cotton, tobacco, rice, indigo, grains and flour, fish, livestock, dairy products, and timber. Shipbuilding was the major manufacturing industry. In 1763, the total value of exports for Virginia, Maryland, New York, Pennsylvania, and Massachusetts was £2,722,000, of which £55,000, or 2 percent, was for "copper ore, and iron in pigs" (3)1 and £49,000 was for 21,000 barrels or hogsheads of "pot-ash." The value of 75 ships built for sale in 1763 by the colonies was £61,500.

Jan 1, 1976

By Gerald M. Rich

Magma Copper Company, a subsidiary of Newmont Mining Corporation, has initiated many changes in the continuous casting of 5/16 inch diameter copper rod since startup of the San Manuel rod plant in early 1972. With rod production at forty percent over design capacity, many production records have been established including a record cast of 761 tons of salable rod in a twenty-four hour period. The most challenging and rewarding introduction was the continued utilization of an alloyed copper casting wheel in lieu of the conventional steel wheel. With proper cooling and careful control of the mold release agents. as much as 58.000 tons of copper were cast on a single copper wheel. Other advantages are: 1) Fifteen percent increase in available casting time 2) Reject rod from steel inclusions was reduced by nearly one-hundred percent 3) Wheel cost was decreased by ninety-one percent 4) Natural gas consumption dropped approximately fifteen percent 5) Large increase in refractory component life 6) Reduction of manhours/ton. Many other modifications have contributed to excellent rod quality and high operating efficiency. A two-piece launder was replaced with a single castable launder which reduced oxygen pickup and provided better slag removal. Modifications to the bar preparation unit, pickling system, and coiler resulted in considerably higher milling efficiency.

Jan 1, 1976

By Walter J. Mead

By American tradition, if not by rational decision, publicly owned natural resources have been transferred to private industry for processing. The process of transfer requires specific determination of the price which the patentee, buyer, or lessee must pay to the government in exchange for the right to develop a resource, and selection of the patentee, buyer, or lessee from among several possible contestants. Pricing of natural resources owned by the government presents a set of problems quite different from ordinary commodity pricing. Natural resources in situ are not homogeneous commodities. Within any class of natural resources, specific leasable parcels will differ in value by reason of location and accessibility, as well as quality and quantity. Thus, there is no "going price;" every lease within a specific resource class will have a different value. To complicate further the pricing and buyer selection problems, competition may not be reliable. Natural-resource markets are characterized by oligopsony conditions. In a significant number of cases, as will be shown later, there has been only one bidder for a given lease, and in most lease sales the number of bidders is equal to or less than three. As a further complication, there is great uncertainty regarding the value of specific resources, even among the best-informed buyers, as well as within the leasing agency. In some instances, particularly with regard to oil and gas resources, there may be uncertainty about the presence of resources, as well as the quantity and quality of any resources contained in the tract offered for lease. In other cases, such as oil shale and some deep ocean minerals where new technologies are involved, the presence of the resource is clearly established. There may be a relatively high degree of knowledge about the quantity and quality of the resource, but there is great uncertainty concerning the cost of production. These problems in total make it difficult for the leasing agency to appraise accurately the resource to be leased, as well as for the potential bidder to calculate a bid price that will yield him a normal profit. The pricing goal of the federal government as the seller or lessee may be to capture the economic rent; that is, the price of a resource might equal its discounted present value. A required price substantially above this amount would either generate no bids, or, in the long run, would bankrupt the buyer. A price below this amount is a disguised subsidy to the lessee. A subsidy to mineral lessees, as to any other economic interest group, as a minimum should be justified by a clear showing of net external benefits from the economic activity. In the case of timber sales by the U.S. Forest Service, the Forest Service Handbook asserts that "the aim in national forest stumpage appraisal is to determine market value,"8 and "market value" is equated to "fair market value." Regarding minerals, there is no reference in legislation or regula-

Jan 1, 1976

By Sidney Katell

This study estimates capital investment, operating costs, and selling prices for four underground bituminous mines producing coal with annual production ranging from 1.06 to 4.99 million tons. It is assumed that the mines have a 20-year life. Wages and union welfare payments are considered as of December 6, 1974, under the Bituminous Wage Agreement of 1974, and costs for material and equipment are based on 1975 indexes. Initial capital investment ranges from $23,629,500 for the 1; 06- million-ton-per-year (MM tpy) mine to $79,907,500 for the 4.99-MM-tpy mine. Total capital investment ranges from $35,336,500 to $1 18,863,500 for the same mines. Corresponding selling prices for the coal range from $13.57 to $11.36 per ton, assuming a 15-percent discounted cash flow rate of return after Federal income taxes.

Jan 1, 1975

By Jimmie C. Rosenbruch

The Federal Bureau of Mines evaluated the prospects for using geothermal energy to generate electricity for mines in remote areas. Given the development of a geothermal resource for this purpose, the subsidiary uses of space heating and agriculture were then examined to see if other industries might be viable given a cheap source of heat energy. Sites investigated were located in three areas of Alaska: Kobuk in the northwest, Unalaska in the southwest, and Stikine River in the southeast. Each site was relatively close to mineral deposits whose prospects for development would be enhanced with cheap power.

Jan 1, 1975

By Roy A. Grancher

Construction materials indeed face a dilemma...as does the building industry as a whole. A stop & go economy; a severe drop; in housing starts; lingering indecision over just what corrective steps are to be taken or to their degree of commitment; no less basic disagreement in regard to which of the, Nation's problems is really the most pressing -- inflation or recession? Optimism has become a rare quality these days. At moat the cautious view is that this new year will see a long, hard struggle back, with hopes that 1976 at least can truly mark a dual anniversary celebration for the United States and its economic health. Yet the paradox is that once recovery does return, those very construction minerals and materials --which in recent years have experienced the ups and downs of overcapacity, shortage, and now declining demand again-- will once more face the spectre of mass inability to service revived and growing needs for its product. Mounting costs, present marginal expansion investment, and substantial lead times required for new facilities to come into production, could well form a bottleneck to economic upswing. The result again can be another cycle of shortage-induced inflation, and with it continued gyrations within the demand supply relationships of the country's building industries.

Jan 1, 1975

By Sidney Katell

This Bureau of Mines study estimates capital investment, operating costs, and selling prices for three underground bituminous mines producing coal with annual production ranging from 1.03 to 3.09 million tons. It is assumed that the mines have a 20-year life. Wages and union welfare payments are considered as of December 6, 1974, under the Bituminous Wage Agreement of 1974, and costs for material and equipment are based on 1975 indexes Initial capital investment ranges from $26,498,500 for the 1.03- million-ton-per-year (MM tpy) mine to $67,173,300 for the 3.09-MM-tpy mine. Total capital investment ranges from $37,437,500 to $92,984,300 for the same mines. Corresponding selling prices for the coal range from $14.83 to $13.26 per ton, assuming a 15-percent discounted cash flow rate of return after Federal income taxes.

Jan 1, 1975

By Raymond F. Moran

The history and development of the FMC Coke process has been reported in numerous presentations over the past 10 years (1, 2, 3, 4, 5, 6) but a short review is desirable, especially regarding the aspects that are influenced by the coal to be used. F'MC has been developing this process in pilot facilities since 1956 and in a modest sized plant in Kemmerer, Wyoming since 1960 (Figure I). This plant produces strong uniformly sized coke briquettes from a completely non-coking coal, namely Elkol, a sub-bituminous coal of the Adaville seam. Since operating commercially, over 300,000 tons have been produced, 90% of which has been used in electric phosphorus furnaces and some 10% of which went for trials in iron blast furnaces. We believe that this commercial use of non-coking coals is a unique experience in the history of coke manufacture.

Jan 1, 1975

The Florida phosphate industry, which supplies about three-quarters of the domestic phosphate fertilizer, produces tremendous volumes of phosphatic clay wastes (slimes). These clays retain a high percentage of water for extended periods of time. The clays also pose an environmental hazard because the disposal technique involves aboveground storage behind earthen dams. Although much research has been undertaken by numerous organizations to dewater slime, no completely satisfactory solution has been developed. In June 1972, a cooperative effort by the Federal Bureau of Mines and the Florida phosphate mining industry was initiated to develop a solution for dewatering the Florida phosphatic slimes. This report discusses various aspects of the slimes problem, reviews past research, makes recommendations for future research, and includes a bibliography of references and patents dealing with the subject.

Jan 1, 1975

By John R. Gaines

I am not a member of AIME, and this is my first annual meeting. As a lifelong member of the non-ferrous metals industry I have enjoyed listening today to speakers point with pride and view with alarm the public relations activity or lack thereof in the halls of government, as well as at the grass roots. There is much to be alarmed about, to be sure, but also some accomplish¬ments to be viewed with pride. Other speakers have given a broad overview of our industry's relations with their several publics. I will be specific about two incidents in which The Anaconda Company faced the loss of confidence of a large portion of its publics: the nationalization of our properties in Chile in 1971 and the closing of our under¬ground mines in Butte, which was announced last October. If I have a minute left over, I will speak about our concern for the loss of confidence in business institutions which has been re¬vealed in recent public opinion polls.

Jan 1, 1975

By J. H. Howard

The purposes of this report are to summarize the findings of the Committee on the Challenges of Modern Society Non-electrical Project (a working committee of the North Atlantic Treaty Organization) and also, thereby, to provide an introduction and review of the current situation regarding non-electrical applications to those who are interested in the subject.

Jan 1, 1975

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 3500°C and sublimes at about 4500°C. It is combustible in the presence of oxygen between 620° and 670°C, but is stable and chemically inert at ordinary temperatures.

Jan 1, 1975

By Robert G. Bottge

Hard rock mining has grown in importance in the Yukon Territory during the last 10 years while Alaskan hard rock mining has declined. One asbestos deposit in Alaska is dormant, but an asbestos deposit 55 miles to the east in the Yukon Territory is being mined by the Clinton Mine Div., Cassiar Asbestos Corp., Ltd. In this Bureau of Mines report, the economics of mining in the two locations were derived using the Clinton mine as a model. Both deposits were assumed to be of equal size and mined by similar methods. Conventional open pit mining and processing methods were assumed, and capital and operating costs were derived using flowsheets and standard costing methods. The estimated cost for the mine, mill, and support facilities in Alaska was about 30 percent more expensive than that in the Yukon Territory. The higher labor rates in Alaska were the primary contributor to the higher construction costs; freight rates added only slightly to the total costs. Approximately two-thirds of the additional annual costs of operating in Alaska were for wages and fringe benefits. The price required for the Alaskan asbestos fiber was $356.65 per ton compared with $287.44 for Yukon fiber, plus or minus 20 percent. A 12 percent discounted cash flow rate of return, 100 percent equity financing, and a rapid writeoff of assets were assumed.

Jan 1, 1975

By John J. Henn

An economic evaluation was made of the Bureau of Mines incinerator residue separation process to update the one published in 1971 to a mid-1.974 cost basis. This evaluation includes a modification of the glass-recovery operation used In the original plant design as well as a unit to bale the ferrous scrap product before shipment. Products from the plant are ferrous metal, aluminum and copper-zinc scrap, and a mixed-color glass cullet. The estimated capital and operating costs for four plant sizes are as follows : [ ] The operating costs do not include credits for recovered metals and glass.

Jan 1, 1975

By G. F. Joklik

Although the mineral shortages of twelve to eighteen months ago have given way to oversupply, their memory lingers on. These problems were man-made: booming demand throughout the industrial world, political and industrial unrest and the oil embargo all contributed. But in the minds of many, the shortages conjured up visions of the depletion of the world's mineral resources, a disaster that could be staved off only by drastic curbs on consumption and therefore, curbs on economic growth. A little historical research shows that fears such as this are not inventions of the 1970's. A hundred years ago, for example, the imminent exhaustion of the world's coal supplies was being predicted in Great Britain. The English economist, John Stuart Mill, who was usually more perceptive, wrote a few years earlier that "it is only in the backward countries of the world that increased production is still an important object". And later there was Franklin Roosevelt who said in 1932, "Our industrial plant is built; the problem just now is whether under existing conditions, it is not overbuilt". His concern, in other words, was not with the discovery and exploitation of new natural resources, but with the administration of known resources and with seeking foreign markets for surplus production. In light of copper prices at the time -- just under 6¢ a pound -- that was understandable. These instances illustrate how, throughout the world's industrial history, concern about surpluses of raw materials has alternated with alarm about the adequacy of supplies and with calls for restricting growth.

Jan 1, 1975

The papers contained herein summarize results of various recent Bureau of Mines investigations in the area of mine power distribution systems. They are based on information from Bureau personnel, contractors and grantees, and Mining Enforcement and Safety Administration. Conclusions drawn from a series of parameter measurements on mine power systems, taken over a 3-year span, are presented. Personnel and equipment hazards due to faults on isolated, solidly grounded, and resistance grounded three-phase systems are discussed. Two papers cover dc applications of circuit breakers, including a novel protection scheme for trolley lines. The methods of suppressing induced arcing currents and voltages in a-c machines are evaluated. An evaluation program for ground monitors is described. Acceptance test procedures and the importance of various paparameters for trailing cable splice are covered. A number of techniques for locating faults in trailing cables are described.

Jan 1, 1975

By T. C. Campbell

This Bureau of Mines publication presents an analysis of information related to the transportation of bituminous coal by unit trains and slurry pipelines. Even for short hauls from mines to markets, transport costs frequently account for between one-third and one-half of the delivered price of coal. Minimizing these costs has become an even more critical objective for hauls from the western mines than for hauls from farther east. Factors related to minimizing costs and transporting the western coal receive special attention. Although no general rule of preference is likely to be developed that can be applied to all shipments, both rail and pipeline service will be needed on an increasing scale. The study should provide useful background information and analysis for government and industry in approaching investment decisions in the mining and transportation industries.

Jan 1, 1975

The U.S. Bureau of Mines has been concerned for many years with the general problems of underground coal mining and the particular problems due to the methane content of the coal. The Bureau and others have worked diligently to improve the health and safety conditions for underground coal miners. It has been recognized for many years that the methane in coal would have some value if it could he recovered and used, Also its removal before coal mining began or during the mining cycle itself would make mining safer and more economic due to a potential saving in ventilation costs. The work covered in this report was carried out to review methods of removing methane from active and inactive regions of operating coal mines and to determine how the methane could be concentrated and utilized economically.

Jan 1, 1975