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By William Cochran

The mineral waste disposal system at the Grace Mine, Morgantown, Pa., was designed to minimize environmental effects while allowing much of the waste from the iron mine, mill, and concentrator to be utilized. Standard cost estimating procedures were used by the Bureau of Mines to determine waste disposal costs. Mill tailings and rock waste disposal costs were estimated at $0.151 and $0.276 per ton, respectively, for the 1965-67 production period. Total waste disposal cost was reduced about $0.015 per ton by utilizing part of the waste as aggregate. The net average cost for disposal of all mineral waste was $0.189 per ton.

Jan 1, 1969

By Manuel Gomez

The Bureau of Mines used data from 31 core samples to develop prediction equations for evaluating chemical and carbonization properties of six seam units in a lignite deposit approximately 2 miles wide and 8 miles long in the Wilcox Formation of central Texas. Statistical response surfaces, based on core analyses, were computed for 14 parameters indicative of lignite quality. These computed surfaces, and their mathematical equations, can be used to predict values of the selected properties of the lignite seams at any desired surface coordinate position between core hole locations. The wide range of application shown by this study indicates that the methods of statistical regression analysis may be useful to evaluate large deposits of lignite or higher rank coal.

Jan 1, 1969

By Northcutt Ely

My topic today is our Nation's interest in the minerals beneath the oceans. I will state what I think should be our objectives, the means available to attain these objectives, and the obstacles to their accomplishment. It is possible that as early as this year of 1969 our country must make policy decisions on this subject, and that these, once made, will be almost irreversible. Two factors are hastening an. early decision. First, the 1958 Convention on the Continental Shelf becomes eligible for amendment after June 10, 1969, if the Assembly of the United Nations so decides. Second, the United Nations has created a permanent committee of 42 nations, which was preceded by an ad hoc committee of 35 nations, to study the question of the peaceful uses of the seabed "beyond the limits of national jurisdiction. While these measures purport to deal with the creation of a regime to govern mineral development on the deep sea floor beyond the limits of the jurisdiction of the coastal nations, it has become clear that the urgent issue is the extent to which this future regime shall acquire jurisdiction over the mineral resources of the continental margin, and receive royalties therefrom. This brings the proposal into potential collision with the interests of the coastal nations under the 1958 Convention on the Continental Shelf, including, of course, the United States.

Jan 1, 1969

By Thys B. Johnson

Operations Research techniques for determining optimal shipping schedules and production and product allocation are discussed. A hypothetical mining operation model is formulated by the Bureau of Mines, and optimal production and product allocation are determined. The technique of sensitivity analysis is discussed and is used to illustrate the effect of the variability in a mining operation on the optimal production and product market plan.

Jan 1, 1969

By Armando M. Lago

This paper reviews the postwar changes that have occurred in the expenditure and financial behavior of mineral corporations, and in particular the relative importance of factors that affect the industry's supply and demand for funds. This quantitative statistical investigation of factors affecting sources and uses of funds of mineral corporations is achieved through the formulation of a simultaneous equation model of sources and uses of funds. After a description of the study sample in Section I, the postwar cyclical and secular financial behavior of mineral corporations is analyzed in detail in Section II. Section III formulates an econometric model of mineral corporate financial behavior which is then estimated and reviewed in Section IV. Section V discusses policy issues regarding depletion allowances, investment tax credits, and industrial organization of the mineral sector. Finally, the optimum financial structure of mining firms is discussed in Section VI, which analyzes the effect of corporate financial structure on the mining corporations' average Cost of capital.

Jan 1, 1969

By M. R. Geer

The Bureau of Mines surveyed the solid wastes that have accumulated from coal mining in Washington, Oregon, and Montana. Location, amount, character, and condition were determined, and both economic and environmental factors were considered. Areas covered by waste comprise 800 acres in Washington, 5 acres in Oregon, and 1,200 acres in Montana. In a few cases waste is being utilized, particularly cinder from burned refuse dumps, as fill in road construction and as a ceramic raw material. It is estimated that wastes deriving from coal mined for electric power generation by 1974 may amount to 3 million tons of washery refuse, 2.7 million tons of fly ash, and 1,000 acres of spoil banks.

Jan 1, 1969

By J. D. McFarlane, V. Robinson

"The paper begins with a brief account of the naturarly occurring resources of gypsum and anhydrite and a discussion of their relative value and utility as sources of sulphur. The fundamental chemistry of recovering sul-phur values from calcium sulphate is discussed. (a) Thermal decomposition -discussed as impracticable; (b) Reduction to calcium sulphide; (i) Total Reduction-The chemistry is outlined and the Dorr-Oliver and Bureau of Mines processes mentioned. The Elcor process is mentioned and certain deductions made from available information.(ii) Partial Reduction-This is stated as the basis of the only proven process, namely ""The Cement -Sulphuric Acid Process."" The possibility of recovering lime is mentioned as an aside, but dismissed for lack of commercial application. The history of the cement -sulphuric acid process is covered briefly and a list of plants in commercial operation included. A brief elementary account of the basic chemistry of cement production is followed by a discussion on raw materials and fuels. A short account of the flow scheme of a typical plant, with notes on the operating peculiarities, precedes an account of product quality. The latest developments which enable by-product gypsum to be used as a raw material are discussed, with an indication of how the flow scheme is modified. A statement of feasible plant capacities is followed by requirements of raw materials, services, labour, etc., and finally some indication is given of capital costs."

Jan 1, 1969

By Donald S. Colby

This Bureau of Mines report is essentially a handbook, or manual, for making the type of mineral resource valuation commonly required for such public policy problems as mineral leasing. The principle of resource valuation through the capitalization of cash flow is well established. A mathematical procedure, based on a simplified accounting system, is detailed for calculating cash flow from revenue, plant costs, and operating expense. Variations of procedure cover cost depletion, percentage depletion, and depletion limited to 50 percent of net income. The influence of the depletion provisions of the tax regulations on the value of a resource to an owner and to an operator is analyzed. The relationship of royalty, bonus payments, and sales price to resource value is also described, and methods for approximating resource values using these payments as input data are developed.

Jan 1, 1969

By A. Roy MacLean

This paper outlines the changes in modern-day coal mining that have been brought about by the increased cost of labour and the use of new and highly efficient equipment. In the latter category are mentioned the ramp-plate, the Bretby cable carrier, armoured face conveyors and the shearer-loader. Greater productivity and increased safety are emphasized.

Jan 1, 1969

By Peter Chmara

The measurement of dust concentration in Ontario mines since 1926 has been accomplished by konimetry, based on South African experience and methods. The introduction of a voluntary program of semi-annual surveys of air conditions at all operations throughout Ontario mines created a need for an instrument that would assess konimeter spots rapidly and accurately. The development of the Electronic Scanner, it is felt, answers this need. A program whereby all konimeter spot samples taken at Ontario mines will be counted at the MAP AO field offices in North Bay is described.

Jan 1, 1969

By L. K. Weaver

Bureau of Mines investigated the progressive impact that petroleum (crude oil and condensate) operations in the Gulf of Mexico have had on onshore operations and the expected effect of increasing activities in this area on future petroleum supplies from domestic sources. The data analyzed include capital expenditures, number of wells drilled, success ratio for exploratory wells, daily production per completion, annual producing rates, and oil reserves. The report compares offshore and onshore data and ascertains trends in petroleum industry operations. Observed data and trends indicate that in the near future Gulf of Mexico development and production will continue to increase relative to total U.S. petroleum activity. By 1975 annual oil and condensate production from the Gulf of Mexico is expected to be in the range of 750 million bbl to 1,150 million bbl, and account for approximately 20 to 30 pct of the estimated total domestic production.

Jan 1, 1969

By Moshe Sheinkin, Burke O. Trafton

This paper describes the use of a computer in analyzing the expected return on a mining venture. The computer program is designed to incorporate all aspects of a mining project, including the mine, mill, smelter, and refinery. Data input may consist of the operating variables in each phase such as the mining rate, grades, reserves at the mine, and the technical operating characteristics of the mine, mill, smelter, and refinery. Detailed tax computations are shown for a domestic operating company, for a foreign company and for a foreign subsidiary. In addition, the use of the various options that are available such as expense write-offs or deferments to create tax credits during preproduction years are considered, and its effect on the DCF. The program is also constructed to accommodate changes in metal prices, and escalation of capital requirements and operating costs. Output consists of profit and loss statements for entire projects using different methods of depreciation, cash flows, discounted cash flows, net present value and returns on investment. Returns on investment are computed for equity investment, total investment, and total investment less tax credits. Allowances are made for bank and guaranteed loans. Additional financial statements can be made for the following: a) A mine-mill segment with a concentrate selling schedule b) A mine-mill-smelter complex with a smelter product selling schedule c) Profitability of the smelter separately d) Profitability of the refinery separately

Jan 1, 1969

By J. R. Boyle

The Bureau of Mines developed cost estimates fur the disposal of phosphate rock washer slimes by pond settling, from a study of the method used at the International Minerals a Chemical Corp., Moralyn Phosphate Operations, Polk County, Fla. Data were obtained by basing phosphate production and slime generation statistics on plant capacity rather than on actual company records. Cost estimates, which were prepared as a guide in evaluating alternative disposal methods and in identifying needed areas of research, could be applicable to any Florida plant using the same disposal method. To conserve mineral resources and to improve environmental conditions, the Bureau recommends further research directed toward developing alternative methods of disposal, including the recovery of water and P205 values from the slimes.

Jan 1, 1969

By Robert E. Baker

Cortez Gold Mines, the United States' third largest primary producer of gold, commenced continuous operations on January 10, 1969. The decision to proceed to production was made in March of 1968 and construction of the mill and stripping operations for the pit began in April and July, respectively. Anomalous conditions on the slope of Mt. Tenabo along the Roberts Mountain thrust fault zone were discovered by the U.S.G.S. while conducting geochemical surveys in the old Cortez silver district. Following the discovery of gold an intensive program of drilling was organized. Drilling outlined an orebody with 3.5 million tons of ore averaging 0.28 ounces of gold per ton. It was on the basis of this reserve that a 1700 t. p.d. cyanide plant was designed. Needless to say, with such a limited ore reserve, economies in design and construction would have to be observed. Cortez Gold Mines is a joint venture with American Exploration & Mining Co., The Bunker Hill Company, Vernon F. Taylor, Jr., and Webb Resources, Inc. , as partners. American Exploration & Mining Co. is the operating partner.

Jan 1, 1969

By Jerry R. Riding

Metallurgical process methods have seen dramatic improvement over the past fifty years. As these improvements have come about, more and more emphasis has been placed on obtaining accurate and rapid analysis of the metallurgical processes. Well-defined conventional laboratory analysis procedures which have proven to be reliable were developed early in the mineral industry's history; however, these conventional procedures, which have not changed appreciably in fifty years, have the serious drawback that they are too slow to be of appreciable value in automatic control of the processes. For example, the assay results normally become available to a mill operator from eight to twenty-four hours after a sample is taken. Since the desired mineral separation can only be made while the minerals are in the flotation circuit, conventional assay results provide information similar to postmortem reports. Consequently, using conventional procedures, the mill is operated with information from an earlier period of time, which may not reflect current conditions. In recent years there has been a steady increase in the volume of required samples. At the same time, labor, material, and overhead costs have continued to rise causing the cost per assay to reach an alarming level. This rising cost per assay, plus the increasing demand for rapid analysis necessary for control, has caused the mining and metal processing industries to look toward other techniques to solve these problems As a result, X-ray fluorescence which can provide on-stream analysis necessary for control, as well as perform numerous laboratory assays at lower cost and at a much greater speed than conventional methods, has gained wide-spread attention. In addition, multichannel X-ray fluorescent instruments are now available which have been perfected to the point where the analysis of the most important chemical constituents is available within one minute after a sample is presented to the X-ray analyzer. Because of these obvious advantages, extensive use is being made today of X-ray analysis in the mining industry to analyze slags, ores, and mineral content of rocks. The results are used to make quick decisions for both mining and beneficiation of metals. For example, X-ray systems which provide rapid on-stream analysis of the slurries at desired points Fn metallurgical processes have recently been developed. The successful application of these systems has moved the milling process a step closer to fully automatic control.

Jan 1, 1969

By Grace N. Broderick

U.S. supply and demand data for coal, by States and regions, were tabulated for the years 1960 and 1965. Estimates are provided of State-by-State quantitative data for the coal industry that can be integrated into State and regional energy balances by source, form, and consumer sectors, and used for estimates of interstate and interregional energy flows. The tables give an estimated total supply of coal available for consumption, and also report the distribution of the supply among the major consuming sectors (household and, commercial, industrial, transportation, and electricity generation). To enable comparison of coal data with those for other energy forms, tonnages were converted to British thermal units (Btu). Future energy analysis studies could be facilitated by changes in the categorization of information collected on the coal industry. The data shown are based primarily on Bureau of Mines source material.

Jan 1, 1969

By Edward S. Bell, Frank Angebrandt

"Nuclear reactors must have very large heat outputs to compete with conventional sources and the only feasible applications are in the production of electric power or large quantities of process steam. This paper considers alternative fuels for electric power generation in Canada. In a publicly owned utility, nuclear stations are economic for base-load generation for unit sizes of 500 mega• watts or larger where competitive fossil fuel costs are higher than about 30 cents per million Btu. In British Columbia, Alberta and Saskatchewan, fossil fuels will continue to be in adequate supply at costs lower than 30 cents per million Btu and thus, except for the special case of Vancouver Island, power generation in Western Canada will continue to be the hydraulic and conventional thermal type. In Eastern Canada, fossil fuel prices are likely to be higher than 30 cents per million Btu and most utilities will be able to install units of 500 mw or larger, so that nuclear power plants will provide much of the base-load generation required. Base-load generation comprises about two-thirds of the energy generated by power utilities. By 1990, the total annual electrical energy load will be over 600 billion kwh, with two-thirds of this load in Eastern Canada. Allowing for additional hydraulic resources which may be developed in Quebec, British Columbia and Manitoba, hydraulic generation is forecast to provide a little more than a third of this electrical energy, nuclear generation a third and fossil-fuelled generation about a quarter."

Jan 1, 1969

By C. F. Gleeson

"Geochemical stream-sediment reconnaissance can be a useful exploration tool from the point of view of rapidly and cheaply evaluating the mineral potential of an area. This is particularly true of rugged and mountainous areas such as are found in Gaspé. For the past two years, SOQUEM has been carrying out such surveys over favorable geological regions in the Appalachians of northern New Brunswick and Gaspe. To date, about 4,000 square miles of terrain has been systematically covered by reconnaissance geochemistry. Jeeps have been used as a means of transportation in the easily accessible areas and a helicopter equipped with a winch has been used to lower crews into the more difficult-to-reach regions. Such surveys have been successful in finding metallic mineralization which otherwise might not have been detected.Electronic computation of analytical information has been used to construct regional metal maps, rolling mean maps and residual metal maps. These maps have helped in evaluating anomalies, in relating the regional geo-chemistry to the regional geology and in comparing the distribution patterns of metals. To date, some 30,000 stream-sediment samples have been collected from the Gaspe region and analyzed for Cu, Pb, Zn and Mn. These analyses are being subjected to computer analysis."

Jan 1, 1969

By Sidney Katell

This report, covering the period January 1968 through December 1968, is a continuation of a series that began with the publication of Information Circular 7516 in October 1949. It is the tenth in a series of reports prepared in cooperation with the American Association of Cost Engineers. The abstracted articles are concerned with all phases of cost of engineering in the field of chemical and petroleum plants and related subjects. They are from the following sources: 1. American Association of Cost Engineers Bulletin. 2. Bureau of Lines Information Circulars. 3. Bureau of Mines Reports of Investigations. 4. Chemical Engineering. 5. Chemical Engineering Progress s 6. Chemical Week. 7. Coal Age. 8. Coal Mining and Processing. 9. Cost Engineering. 10. European Chemical News. 3 11. Hydrocarbon Processing. 12. Industrial and Engineering Chemistry 13. Oil and Gas Journal. 14. Petroleum Engineer. 15. World Oil.

Jan 1, 1969

By James D. Cooper

Long range projections of demand for nonmetallic minerals are presented, together with data on the domestic resources which are available or which can be made available to meet the requirements through the balance of the century. Past successes in solving nonmetallic mineral requirement problems are briefly reviewed to illustrate the capability for solving present and future problems of a similar nature. Major problems threatening the future supply of specific industrial minerals are described together with possible methods for assuring the necessary raw materials for future needs. The growing importance of environ- mental degradation, land use conflicts, and other important factors which affect several or all of the nonmetallic mineral industries is covered, and the necessity of planning for efficient and orderly extraction and rehabilitation of mineral deposits is stressed. The present Bureau of Mines methods and tools for long range planning are briefly discussed.

Jan 1, 1969