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By John Dasher

The analyses reported on in this paper indicate that there are hydrometallurgical routes from sulphide concentrates to copper that are potentially competitive with smelters which are not permitted to emit sulphur oxides. The various hydrometallurgical processes, and their economics, are discussed.

Jan 1, 1973

By R. P. Maloney

The economic viability of four depleted mines near Kennicott, Alaska, was determined by the Bureau of Mines to assess their profitability if they were developed today and thus estimate cost data for a medium-sized mine, mill, and town complex. This information should help the State and Federal Governments appraise the potential development of similar-sized mining operations in Alaska. Modern conventional mining and milling techniques were assumed, and I capital and operating costs were derived using flowsheets and standard costing methods. A total capital investment of $37.6 million was necessary to install a 1,000-ton-per-day shrinkage stope mine, flotation-type mill, and support facilities; capital requirements were divided about evenly among the three components. Operating costs, including labor, supplies, power, water, and ' indirect and fixed costs, totaled $42.79 per ton of ore; the mining accounted for nearly one-half the cost. To obtain a 12-percent discounted cash flow rate of return on investment, the analysis showed that the ore could be mined and milled, and the concentrate could be trucked via public roads to a dock facility in Valdez, Alaska, barged to Tacoma, Wash., and smelted and refined for 34.7 cents per pound for copper and 104.0 cents per ounce for silver. The average May 1972 price was 52.6 cents for copper and 158.3 cents for silver. The same set of data was used to examine the economic viability of the mine with the cost of constructing a private road from McCarthy, Alaska, To Valdez, Alaska. The 148-mile road added $53.3 million to the original capital costs and raised the required price of copper to 57.4 cents per pound and the required price of silver to 172.0 cents per ounce. The additional coat of building, maintaining, and paying taxes on a private road from McCarthy, Alaska, to Valdez, Alaska, would make this venture uneconomical.

Jan 1, 1973

This report, the second in an annual series, summarizes information on latest technological developments and advances, and identifies trends in mining and metallurgy based on a review of activities in the minerals industry in 1971. Exploration and mining data obtained from an annual canvass are presented for 1971 and are compared with similar data obtained over the past decade.

Jan 1, 1973

By L. K. Weaver

The purposes of this Bureau of Mines report are to review the history of the domestic offshore hydrocarbon production; to project offshore oil and lease condensate production from 1971 through 1985; and to show the impact of offshore development on the onshore segment of the petroleum industry. Since 1954, offshore production has provided an increasingly larger portion of the domestic oil production. Domestic offshore oil and lease condensate production has increased from about 2.0 pct of the U.S. total in 1954 to 16.7 pct in 1970. Likewise, marketed gas production has increased from 1.0 pct of the U.S. total in 1954 to 15.0 pct in 1970. The past performance of exploration, leasing, development, and production of the offshore petroleum industry was used to make projections of offshore oil production. A comparison between onshore and offshore operations was also made. Assuming a tentative Department of the Interior offshore leasing schedule is completed by 1980, the authors estimate that by 1985, about 30 pct of domestic crude oil and lease condensate production from the lower 48 States will come from offshore areas. Currently, leasing of Federal offshore areas has been delayed due to environmental considerations. The rate at which off-shore hydrocarbons will enter the energy market will depend, to a large extent, on how soon environmental considerations are resolved. Assuming that offshore leasing will resume in the near future, U.S. offshore production of crude oil and lease condensate should be about 934 million barrels in 1985.

Jan 1, 1973

By P. L. Wright

"This is a brief history of the development of the mining project, with a description of the proven geology. The paper describes how the experiences gained progressively demanded change in the mine design. The equipment used is described, together with methods of working. Interesting facts have been proved regarding gas emissions and roof. supi;iort. The. working cycles evolved are completely flexible m operation and lend themselves to maximum utilization of the most productive units. The two underground mines are compared, showing the variance in conditions already experienced. Programs currently in operation to improve standards and production are: the training of miners, maintenance men and officials; experiments in floor consolidation and continuing roof support trials; and the effect of comparative stability of working crews on the performance of the operation."

Jan 1, 1973

By Robert Louis Adams

A general discussion of the structure of the junk automobile recycling system shows that the generation of stripped automobile hulks and scrapped automobiles is price inelastic. As a result, it is extremely difficult for the price mechanism to automatically achieve an equilibrium that will prevent the accumulation of excessive automobile wrecker inventories and vehicle abandonment by the last owners of scrapped cars. The new shredder processing technology and the new portable flattener technology have altered the structure of the junk automobile recycling system. The shredder technology has increased the demand for processed automobile scrap. This increased demand is reflected in higher prices paid for hulks by scrap processors. The portable flattener has reduced the transportation cost of shipping hulks to processors. The two new technologies have eliminated, at least potentially, the net cost of shipping stripped hulks so frequently incurred by wreckers in the past. The elimination of this cost eliminates the economic incentive for excessive wrecker inventories. Unfortunately, the incentive for last owners to abandon their cars does not appear to have been eliminated by the new technologies. The last owner of an automobile with no spare parts value is still likely to incur a cost by delivering his automobile to the recycling system. Although a subsidy payment is probably unnecessary to reduce excessive wrecker inventories, such a payment might be one solution to the problem of automobile abandonment. However, there are a wide variety of subsidy programs that could be introduced. Before any Federal subsidy program is introduced to reduce automobile abandonment, it is recommended that the program be tested on a limited basis in many different parts of the country.

Jan 1, 1973

By Robert C. Johnson

Domestic byproduct fluorine (in fluosilicic acid) availability at various price levels of aluminum fluoride were determined and a contingency availability curve developed. The supply of byproduct fluosilicic acid is restricted in amount to certain geographic regions, where plants processing phosphate rock are located, and the byproduct can be collected. The maximum possible U.S. annual supply, based on potential plant capacities, is 373,400 tons of fluosilicic acid containing 295,400 tons of fluorine. Based on inputs of 5, la, 25, 50, and 100 thousand tons per year, five levels of producing aluminum fluoride from fluosilicic acid (100 percent) were costed. Based on a 12-percent discounted cash flow rate, including the cost of salvaging the fluosilicic acid, the calculated selling price of aluminum fluoride ranged from $233 per ton to $448 per ton. At the higher price, 98 percent of the potential supply of byproduct fluosilicic acid could be used profitably; at the lower price only 46 percent could be used profitably.

Jan 1, 1973

By Harold J. Bennett

This study was performed by the Bureau of Mines to evaluate the potential supply of primary copper from domestic resources. A tonnage-price relationship was developed indicating the quantity of copper that could be produced economically from known deposits at various copper prices and at various rates of return on the required capital investment. Costs of production are based on estimated capital and operating costs for mining, concentrating, smelting, and refining the copper. Total known recoverable copper resources are 189 million short tons of which 83 million tons could be economically recovered assuming a price of $0.50 per pound of copper, credit for the recovery of byproducts, and a 12-percent rate of return on capital investment. The quantities of recoverable byproducts associated with the 83 million tons of recoverable copper are molybdenum, 1.8 million tons, gold, 43 million troy ounces, and silver, 740 million troy ounces.

Jan 1, 1973

By K. R. Nichol

The author points out that corrosion works 24 hours a day, every day. It is an economic reality that the cost of corrosion is inevitable and that its cost should be incurred in the least expensive way. An economic evaluation technique to properly assess its relative impact is the Discounted Cash Flow Method. Various remedial and corrosion control measures are available and these, when coupled with a planned corrosion control program, help reduce the cost of corrosion.

Jan 1, 1973

By Horace T. Reno

This information circular surveys the iron are industry of the world. It presents a comprehensive statistical record through 1970 of the U.S. iron ore industry and world trade patterns. The supply position of the United States and the other principal industrial countries of the world are summarized; detailed information is given on iron are production, consumption, imports, exports, mine capacities, substitutes, properties, and uses. There is a generalized discussion of the technology of mining and smelting iron ore, with a selected bibliography on the current state of these arts. The circular contains a summary economic account of world iron are resources, and discussions of the structure of the domestic and principal foreign mining industries, iron are mine employment and labor productivity, research and development, legislation, government programs, and strategic factors.

Jan 1, 1973

By Alfred Petrick

This study gives an analysis of the copper system byproducts and discusses the identification and classification of byproduct metals and their supply systems. Arsenic, platinum-group metals, silver, gold, selenium, tellurium, molybdenum, rhenium, uranium, aluminum, magnesium, and byproduct copper, lead, and zinc from complex ores are covered. The report describes several metallurgical systems, the marginal and incremental products costs of byproduct subsystems, industry structure and organization, and the historical data on price, consumption, and supply. Supply curves are presented for about one-half of the byproduct metals studied. The study develops a conceptual framework for analysis by reviewing the present concepts of byproduct supply and the related price theory. It gives the sources of supply of the individual byproduct metals to indicate the importance of the byproduct supply to the total supply. Mills, smelters, and refineries processing byproduct materials for their metal content are identified by geographic location and company ownership, The study also includes information on the reserves-resource base supporting byproduct output, reserve estimates, and the demand aspects of each byproduct metal.

Jan 1, 1973

By John Ward Smith

Aragonite, co-occurring with calcite and dolomite as matrix minerals, has been discovered in Mahogany zone oil shales of Colorado's Eocene Green River Formation, posing puzzles on the geochemical patterns of their separate origins, reasons for their simultaneous existence, and their interrelation. The presence of aragonite is demonstrated by X-ray diffraction. Amounts of aragonite and dolomite are significantly and inversely related, but the calcite quantity is essentially independent of either aragonite or dolomite quantity. A geochemical pattern outlining the deposition conditions that created the Green River Formation oil shale is postulated from characteristics of the oil shale. The development of the three separate carbonates--aragonite, calcite, and dolomite--the inverse relationship between aragonite and dolomite, and the independence of amounts of calcite and the other two carbonates are shown to be natural consequences of this oil-shale genesis pattern.

Jan 1, 1973

By R. L. Every, A. G. Fonseca

"Sulphur deposition on the internal wall of a pipeline is caused by the temperature effect on the solubility of sulphur in the carrier fluid and is not due to particulate sulphur present. Deposition can be completely eliminated by proper insulation of the pipeline to prevent ""cold-spots"" and the resultant temperature gradient necessary for sulphur to precipitate from solution. Friction head losses for sulphur-condensate slurry systems are quite acceptable from a technical and economic standpoint and, in fact, are less than many present commercial slurry systems. Slurry transportation of sulphur in a hydrocarbon pipeline is a viable possibility and promises to have economic advantage over currently accepted transportation modes."

Jan 1, 1972

By G. C. Baker

Despite the attention belatedly bestowed on tidal power in recent years, it remains largely a potential rather than an actual source of energy. The resource is, practically speaking, non-depletable. Extraction is technically feasible and environmentally acceptable. The restraints against development are economic, and they could be removed by technical improvements, changes in the cost or availability of other energy sources, or simply by a change in the cost of money. The exponential rise in the demand for energy makes it inevitable that the tides will be harnessed sooner or later.

Jan 1, 1972

By S. F. Willey

The difficulties encountered in justifying replacements for over-age mobile mine equipment at the Gay Mine are common to most mining operations. More critical management reviews, resulting from ever rising capital expenses, increased such difficulties. These increased difficulties are especially apparent to those who are primarily operators and are not statisticians, mathematicians, or computer oriented. The Gay Mine is located 17 miles east of the town of Fort Hall in southern Idaho. This open pit operation annually supplies the J. R. Simplot Company and the FMC Corporation with 1.5 MM - 2.0 MM tons of phosphate ore. Stripping ratios average approximately three bank cubic yards of waste per ton of ore mined. The mobile mine equipment fleet consists of ten 24 yard scrapers; twenty-one 30-50 ton end dump trucks; four 32 42 yard shovels; fifteen dozers in the D-8 and D-9 classes; and three road patrols. Equipment replacement is based on the results of evaluations made on individual units. Authorization of capital expenditures for equipment replacement is dependent upon a favorable profitability index (true rate of return on investment) plus a favorable payout time. The system is based on cash flows and requires the determination of (1) the net cash outflows in the form of capital expenses plus (2) the expected cash inflows resulting from reduced expenses and depreciation tax credits. After adjustments for taxes and the time value of money, the net amounts are used to calculate the required indices. The basic elements for the system related to the replacement of mobile mine equipment include: (1) the determination of dollar penalties to be expected from the continued use of aging equipment; (2) the selection of equipment that will provide the greatest return on the investment dollars; (3) the quantification of the expected savings; and (4) the calculations of the prescribed indices. Inadequacies inherent in previous evaluating methods led to the search for more

Jan 1, 1972

By W. E. Coates

The social ecology of surface mining in urban areas is illustrated by a case study of a recent application for the opening of a new gravel pit in the city of Guelph, including the design of a progressive extraction-rehabilitation sequence for the property, investigation of the ecological impact of the proposed operation, history of the application procedure for a zoning change and the relationship of the operating plan to provincial legislation controlling surface mining.

Jan 1, 1972

By Luino Jr. Dell'osso, Richard L. Every

The enormity of the methane-in-coal problem is discussed, with a brief summary of the state-of-the-art. Laboratory techniques and data on the desorption of methane from Pittsburgh seam coal are presented and discussed and include the effect of time, temperature and vacuum. Under laboratory conditions, it was possible to displace 90 per cent of the residual methane by flooding the coal samples with carbon dioxide. Carbon dioxide was found to be three times more effective than air and almost five times more effective than helium.

Jan 1, 1972

By Kenneth N. Weaver

Introduction and Historical Background State Geological Surveys have been deeply involved in industrial minerals from their inception beginning in the first half of the 19th Century. To Massachusetts belongs the credit of having carried out the first Geological survey under state auspices on the Western Hemisphere. One of the causes leading up to this survey was. Governor Lincoln's message to the legislature of May 29, 1830, from which I quote in part: "Much knowledge of the natural history of the country would thus be gained (from a geological survey), and especially the presence of valuable ores, with the localities and extent of quarries and of coal and lime formations, objects of inquiry so essential to internal improvements and the advancement of domestic prosperity, would be discovered.". Similar phraseology is present in practically all of the initial organic acts creating the first State Surveys. High on the list of priorities for these embryo surveys was an inventory of the mineral resources of the State with particular emphasis on the industrial minerals. Prom these early beginnings, the state surveys have developed a great wealth of geological data either directly or indirectly relating to the development of mineral resources. One can gain some conception of the effort that state surveys today place on industrial minerals studies by noting the projects in which they are engaged as reported in the State Geologists Journal. In 1970, for example, approximately

Jan 1, 1972

By K. J. Reid

With the current trends of increasing costs and decreasing head grades the mineral industry is no longer operating in very high profit areas and has been forced to pay greater attention to the application of modern technology. Although here are many technological advances to the credit of the industry in recent years there are still many processes being operated in the traditional manner and still many areas awaiting the application of methods which have been proven in other industries. Compared with the chemical industry the mineral industry is seriously ageing in the general areas of process analysis and process control, more so than can be justified by the complications arising from having to deal with particulate systems with properties far different from ideal, or even non-ideal, liquid systems. One area in which there has been a remarkable lack of application in the Mineral industry is that of analog computation and the authors feel that there is considerable scope for the use of the analog computer in studying mineral industry processes. The paper outlines the basic principles and features of the analog computer and describes its role as a simulation tool in some engineering and mineral processing systems.

Jan 1, 1972

By Clarence A. Johnson

The discovery of the Prudhoe Bay field temporarily reduced interest in the development of coal conversion processes, but interest is being re¬newed by the current energy crisis. According to M.A. Wright, Chairman of the Board of Humble Oil and Refining Company(l), the reserve in the Prudhoe Bay bield has been confirmed to be about 10 billion barrels. At first glance this appears to be an extremely large reserve which will eliminate supply problems for the United States for some time. This feeling of security is lost when one realizes that by 1980 the world will consume the reserves of a Prudhoe Bay or a Libya, or Venezuela in less than a year, based on the recent predictions of U.S. and world reserves made by Eastman-Dillon, Union Securities Company(2). Recent forecasts of U.S. demand and source of supply made by Kenneth E. Hill of Eastman-Dillon are shown in Figure 1. This forecast shows a decline in domestic supplies (excluding Alaska) after 1973, with the total domestic supply leveling off in 1975 at about 13 million barrels per day. Since the predicted demand increases from about 14 million barrels per day in 1970 to about 20 million barrels per day in 1980, about 35% of domestic consumption must come from imports or non-conventional sources by 1980. More imminent is the shortage of low sulfur fuel oil which has been created by the new, tough air pollution regulations that are basically legis¬lating eastern coals out of the market. As an alternate to importing large quantities of low sulfur fuel oil or importing and desulfurizing regular fuel oil, one of two domestic solutions is possible: stack gas clean-up or solids fuel pretreatment. Stack gas clean-up may be the cheapest approach for old installations, but fuel pretreatment has real advantages for new installations. Coal pretreatment at the mine could eliminate all solids fuel handling

Jan 1, 1972