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By Serge Payant, Michael G. Li, Lionel J. J. Catalan

Alkaline solution rinsing for decommissioning of an acid-leached residue was evaluated by column experiments, neutralization tests and solid characterization by XRD and SEM. It was found that consumption of a strong alkali during residue neutralization was much greater than that required to neutralize the soluble acidity. The excess alkalinity was consumed by solid-phase conversions unnecessary for the success of decommissioning. Alkaline rinsing did not reduce the time requirement for decommissioning when compared with plain water rinsing. Since no benefit is gained to compensate for the additional costs associated with excess alkali consumption, we conclude that strong alkaline solution rinsing is in fact inferior to simple water rinsing.

Jan 1, 1998

By B. Cavender

Mining managers trying to rapidly reduce production costs tend to implement a traditional set of topdown managerial practices: reductions in production volume, employee layoffs, renegotiation of supplier contracts, cancellation of employee training, restrictions on travel, reductions in office supplies, and so forth. While these practices do reduce costs, the benefits are often limited in both magnitude and duration, and the workforce is usually left demoralized. Successful cost-cutters take a different approach. They make the continuous reduction of costs a priority for all members of the organization, whether managers or workers. The culture of these firms emphasizes the commitment, voluntarily given, of individuals and work groups to this goal. Cost-cutting practices often reject all of the traditional methods mentioned above, but are far more numerous, innovative and successful. This culture of cost reduction is the result of a set of leadership competencies that establish direction for the organization, align the organization's various constituencies with this direction, and motivate and inspire the organization. Cost reduction then becomes a routine task rather than a heroic achievement.

Jan 1, 2002

By Natarajan K. A.

During sulphide ore grinding, electrochemical interactions between grinding medium and the minerals play a significant role in bringing out enhanced ball wear on the one hand and alter the surface property of the ground minerals on the other. The role of the flotation reagents added simultaneously during grinding with respect to ball wear as well as flotation is yet to be established. Electrochemical measurements such as rest potential, combination potential and galvanic current between sulphide mineral and ball material couples have been carried out in the presence and absence of flotation reagents to understand the nature of electrochemical interactions between ball material and sulphide mineral. Electrochemical mechanisms and models have been proposed to explain the role played by the flotation reagents during different binary, ternary and quaternary interactions with respect to ball wear during grinding.

Jan 1, 1992

By P. D. Pack, E. H. Skinner

During design of a 550-foot rectangular shaft in alluvium, lateral support within the excavation was an anticipated construction problem. Actual experience showed that the nearly 9 x 14 foot excavation required no lateral support. A strain measurement program con- current with construction and for a 9-month period following completion of the shaft detected only minor strains. Shaft design included consideration of available geological information. Site exploration included a 754-foot drill hole, cored at selected intervals, and a suite of geophysical well logs. Generalized physical properties of the alluvium were developed from laboratory core testing. An elasto-plastic, finite element computer program (DAHLKE) developed by the Spokane Mining Research Center U.S. Bureau of Mines, has been recently used to analyze the behavior of the alluvium around the shaft. Analysis showed that yielding first develops in the shaft corners and progressively expands into the wall zones around the shaft as loading increases. Gradual growth of a plastic zone progressed outward from the excavation boundary at increasing loads but had limited extent and was surrounded at all stress levels by an infinite elastic zone. This design review, aided by computer analysis, confirmed that the shaft would have been considered theoretically stable as designed.

Jan 1, 1977

By Robert A. Cortese, Carrie E. Lucci

Mine Safety and Health Administration (MSHA) regulations require underground coal mine operators to dust their mine corridors with an inert material to prevent coal dust explosions. The most commonly used material is pulverized limestone. Current practice to determine compliance with MSHA regulations requires the coal mine foreman or an MSHA inspector to collect samples of the deposited dust, a mixture of coal dust and limestone rock dust, for above ground laboratory analysis. To expedite this process, the U.S. Bureau of Mines has developed two instruments to facilitate the inspection and rock dusting processes, the explosibility meter and float dust deposition meter. The explosibility meter is a hand-held instrument which provides an in situ measurement of the explosible nature of homogeneous mine dust samples. The float dust deposition meter measures the mass loading density of the top layer of coal or limestone dust deposited on the mine floor during mining operations by the ventilation air. It may also be used to automate trickle rock dusting equipment. The operation of each device is based on the difference in the optical reflectance between the light limestone dust and the dark coal dust. The principal of the explosibility meter is based on the observation that, for a fixed coal volatility, the optical reflectance of dust mixtures is relatively constant at the limit of flammability, and independent of the coal dust particle size.

Jan 1, 1995

By D. Berberick, G. Sturgis, M. Board, B. Strickland

"Hecla Limited is nearing completion of the Lucky Friday Mine No.4 shaft located in Mullan, ID. The shaft is collared at the 4940 level of the mine and will have a final mine level depth of 8620, or 9,590 feet below the surface. After reaching the 7400 mine level the shaft encountered ground deformation higher then allowed for in the design for a circular shaft excavation and concrete lining. This additional ground deformation required portions of the shaft concrete liner to be reinforced with frameless, steel liner plate. To eliminate the installation of the liner plate from the remaining shaft development, the design of the shaft excavation starting at the 7650 mine level was changed to an elliptical cross section based on the overall stress field orientation as well as the orientation of the structure of the host rock surrounding the shaft. The elliptical cross section was instrumented to confirm the shaft excavation and lining was performing as designed. This design change has allowed the shaft to continue to the planned 8620 mine level without the need to install liner plate in the shaft or change the overall functionality of the shaft or the Lucky Friday life of mine plan.INTRODUCTION Hecla’s Lucky Friday Mine is a deep, underground producer of silver, lead and zinc in the Coeur d’Alene mining district of northern Idaho (Figure 1). Primary access into the mine is via the Silver Shaft, a 5.5-m (18-ft) diameter, concrete lined shaft sunk to an original depth of 1,890-m (6,200-ft). Current production is from the Gold Hunter vein system, approximately 1,525-m (5,000-ft) northwest of the Silver Shaft.Lucky Friday’s #4-Shaft is a 5.5-m (18-ft) finished diameter, internal shaft, or winze, being sunk to the north of the Gold Hunter vein system, from the mine’s 4760 level, 1,743-m (5,720-ft) below the surface, to the 8620 level, 2,923-m (9,590-ft) below the surface. The shaft is designed to provide access to the deep, high-grade zones of the Gold Hunter in order to increase the mine’s production and operational life. Design and engineering began in 2006, with construction starting in the fourth quarter of 2009."

Jan 1, 2016

By Bernard Scheiner

A number of wells were drilled at two phosphogypsum stacks, one at P-21 owned by IMC and the other at Agrico's South Pierce Stack. Each well was sampled, and composites representing 5-ft increments were leached with synthetic rainwater to determine the extent of metal and nonmetal migration. To simulate what was occurring in the stack, composite samples were placed in a column, so that the column represented the stack in miniature form. Leaching experiments showed that both metals and nonmetals moved down the column when water was added to the top of the column. Data obtained from P-21 showed that with time the concentration of metals and nonmetals reached equilibrium values. The concentration of Ca, SO4, F, Si, and PO4 were -600 ppm,~1,500 ppm, 32 ppm, 14 ppm, and 22 ppm, respectively. Column leaching of South Pierce material, representing 0 to 55 ft of stack, showed that after 355 in. of water, the stack was near equilibrium values down to the 33-ft level. With continued addition of water, the portion of the stack at equilibrium would continue to increase and eventually reach the values observed for P-21. The test showed that the sulfate concentration of the effluent from the stack would never reach the USEPA standard value of 250 ppm. During the leaching test, it was determined that the permeability of the phosphogypsum in the columns was 0.000103 cm/sec. This number was used in the modeling. The data obtained from the leaching experiments cast some doubt on the practice of entombment now being practiced for closure of phosphogypsum stacks. The data clearly shows that with time, the amount of material leaching from the stack is low in concentration, with only the calcium and sulfate at higher levels. When a stack is closed at an existing operating plant, allowing rainwater to fall on the stack and capturing the solution in the existing pond system would eliminate the need for covering the stack, since with time the closed stack would continue to leach and at some point reach the equilibrium values of the P-21 stack. Entombment means that the leachable material in the stack will always be there and will require monitoring forever. Allowing rainwater to decontaminate the stack may be the best environmental solution to the problem.

Jan 1, 1999

By Edoardo Misano, Magali Schivre, Martino Semeraro, Alain Bochon

"INTRODUCTIONThe Laboratoire Souterrain de Modane (LSM) is an underground research laboratory located in the Western Alps on the French – Italian border. It is located in the middle of the 13km long Fréjus highway tunnel that links Modane (France) to Bardonecchia (Italy) in correspondence of the highest overburden of 1800m. The LSM current activity is mainly based on the investigations about the dark matter and requires very sensitive instrumentation which shall be protected from cosmic rays. To comply with the new legislation about safety in tunnels, the highway tunnels owners agreed in 2007 the construction of a parallel safety tunnel, at an average distance of 50m from the existing tunnel and the laboratory owner CNRS (Centre National de recherche scientifique) also decided to extend the existing laboratory with the construction of a new 17000 m3 cavern allowing the installation of wider and more powerful instruments that could increase chances of success of research. Preliminary studies stated that, considering both geological and functional issues, the most appropriate location for the new laboratory shall be in between the two tunnels and parallel to the existing laboratory (see Figure 1).Hence, the CNRS asked Systra, already in charge of the works supervision of the safety tunnel, to realize the design of the new cavern. The laboratory extension includes the construction of a 40 m long cavern with 300 m² cross section and two smaller tunnels connecting the safety tunnel and the existing laboratory to the new cavern. The minimum distance between the front face of the new LSM and the highway tunnel is about 25 m.The French and the Italian authorities, responsible of the exploitation of the Fréjus highway tunnel, asked the CNRS to develop an accurate study indicating that the construction of the laboratory extension would not have any negative impact on the existing structures of the highway tunnel. The main results of the developed study by Systra are summarized hereafter. The construction works should begin prior to the end of the construction works of the Fréjus safety tunnel in 2018."

Jan 1, 2016

By J. Girard-Dwyer, J. Johnson, J. Whyatt

The choice of fragmentation method is one of the most fundamental aspects of mine design, and often has a major impact on the safety and economic viability of an operation. Almost exclusively, underground mining operations rely on either mechanical excavation or drill and blast techniques to extract rock. Each of these fragmentation methods has distinct advantages and disadvantages, and each is appropriate, and economic, for different mining conditions. However, the choice of fragmentation method can have a pronounced effect on the amount of damage created in the rock mass surrounding the opening. This paper reviews a number of case studies where both mechanical excavation and traditional drill and blast were used in underground mines. Ground support requirements in the mechanically excavated areas are compared to the support requirements in the blasted sections in order to demonstrate the potential safety and cost benefits of the various fragmentation methods.

Jan 1, 2003

By G. Bryant, P. Ziemkiewicz

Acid mine drainage (AMD) from both abandoned surface and underground mines is a serious problem. The flow of water and changes in quality over time from abandoned mines is important in determining remediation strategies. Acid mine drainage from surface mines is estimated to last for 10-20 years, while estimates of acid drainage from underground mines vary from 10- 100s of years. Fifteen underground mine discharges in West Virginia were studied to compare water quality changes between 1968 and 1999 to see if our data are consistent with other studies. Each of the discharges were categorized into one of three groups: undisturbed since 1968, affected by surface mining since 1968, and reclaimed. Comparing water quality between 1968 and 1999, the discharges in the undisturbed category showed a 35 to 95% improvement in acid concentration and a 40 to 99% reduction in iron concentration. The discharges affected by surface mining showed the most dramatic improvement. For acidity, iron, and aluminum, the percent improvements were all above 44%, and in most cases in the 70 to 99% range. In the reclaimed category, one of the four discharges declined in water quality. Discharge 82 showed a 76% increase in acidity, and iron and aluminum concentrations worsened by 58 and 96%. However, discharges 15 and 74 improved in water quality with a 94% acid load improvement and a 95% iron load improvement at both sites.

Jan 1, 2000

By Clayton J. Parr, Northcutt Ely

Mining law is essentially a branch of the law of real property. It concerns acquisition of property for extracting contained minerals, and the rights, privileges and duties that fall upon the holder thereof once the rights are acquired Accordingly, this section focuses on the procedures to be followed in acquiring state. federal and private lands, and defines briefly the nature of the rights obtained. The mining laws of Canada and Mexico are summarized, and the related subjects of minerals taxation and governmental regulation are discussed briefly. This section is not intended to be the basis for legal decisions. Rather, its purpose is to provide the engineer with an understanding of basic principles and procedures. For a detailed treatise of mining law, reference can be made to The American Law o] Mining, a five-volume set edited by the Rocky Mountain Mineral Law Foundation. The law changes constantly, especially that based on federal and state statutes, and the reader is cautioned to be alert for subsequent modifications of statutes, regulations and case law. 2.1-PRELIMINARY LAND-STATUS CHECK Often, after completion of area reconnaissance, or perhaps after receipt of a submittal, a specific more localized target area will become of interest. Usually, an intensive exploration program comprising detailed surface mapping, sampling, geophysical prospecting and drilling will be required before the mineral potential of the ground can be properly evaluated. Before an investment of this magnitude is made, however, it is advisable to obtain rights to mine ore from the property. Otherwise, knowledge of the exploration activity might greatly inflate land values, or speculators or competing mining concerns might step in. Hence, as a general rule, a land-acquisition program should be undertaken before an intensive exploration project is begun. The first step in such a program is to make a land-status check to determine whether the subject lands are available and, if so, from whom they can be obtained and by what means. 2.1.1-BUREAU OF LAND MANAGEMENT RECORDS In those states which contain large areas of federal land, basically (he western states, the primary informational source is the records of the Bureau of Land Management. These may t)e examined at the land office having jurisdiction over federal lands in the area of interest. The records for Montana and North and South Dakota are kept at the Billings (Mont ) land office; Wyoming, Nebraska and Kansas, Cliejenne, Wyo.; New Mexico, Oklahoma and Texas, Santa Fe, N M ; northern Alaska, Fairbanks, and southern, Anchorage; Utah, Salt Lake City; Nevada, Reno; Arizona, Phoenix; Colorado, Denver. There are two land offices in California, at Sacramento and Los Angeles Records for other states are kept in Washington, D C. at the office of the Director, Bureau of Land Management.

Jan 1, 1973

By Charles G. Frush

The function of the mine surveyor is to (a) provide a network of points of accurately known position, covering the entire mine property, (b) obtain the required data for the preparation of useful maps and sections! (c) provide position and directional control for the guidance of the operations, (d) measure the progress of the work, (e) measure the movement of rock masses, and (f) make miscellaneous surveys as needed. Mining properties range from the very small to the extremely large, and from those which involve only surface operations to those involving extensive underground workings. Active mines undergo constant change, necessitating continual updating of the surveys. The differences in the character of the deposits, the scale of mining and the mining methods result in large differences in the surveyor's activities and techniques, but many of the problems involved are common to most mines. The surface work of the mine surveyor is very similar to that, of the plane surveyor in that control points are established by triangulation, trilateration and traversing. Detail is taken by direct measurement, by stadia and by aerial photography. The equipment used, the techniques and the methods of processing the resulting data are likewise very similar. However, the underground work is quite different : A. The lines of sight frequently must be carried through constricted openings, often involving short lines of sight and awkward setups. B. The lighting often is poor, requiring illumination of the backsights and foresights, and the crosshairs. C. The ambient conditions often are difficult, involving falling water, high tem- peratures, poor visibi 'kv and heavy traffic through the area being suneyed. D. The surrounding rock map be unstable, resulting in movement or loss of the surveying stations, as well as hazard to the surveyors. E. The points to be measured often are difficult or impossible to reach. F. Steep vertical sights often are necessary, requiring the use of special equipment. G. Many working levels commonly are involved, requiring the transfer of position and orientation to each with a high level of precision. This section therefore will concentrate on surveying problems peculiar to the mine surveyor, chiefly underground work. 22.1-THE MINE COORDINATE SYSTEM A system of coordinates is essential for all permanent mining operations It is very desirable that all mining operations in a ,given area b~ tied into the same system, as this minimizes problems of boundaries and connections Whenever possible this system should be tied into and made part of the state or regional grid system. It is desirable to orient the coordinate grid on a true-north line and to position the origin of the coordinates so that all of the work will be in the "northeast" quadrant, making the north and east coordinates always positive. This can be done by subtracting suitable constant values from the north and east coordinates of the regional system The residual values are of more convenient magnitude and can be used as the local mine coordinates. If the long axis of the mineralization is not generally north-south or east-west.

Jan 1, 1973

By James M. Johnson, David Landriault, Frank Palkovits

The term “Paste Technology” was first used in the late 1980’s. It was used to describe a high fines (15 wt% or greater minus 20 microns), low water content backfill material that could be transported underground through a borehole/pipeline distribution system (4” to 8” dia.) at a yield stress similar to fresh concrete (100 to 400 centipoise). This “Paste Backfill”, unlike slurry transported backfills does not segregate into separate solid and liquid phases at low pipeline transport velocities or upon disposal into the underground stope. Paste backfills can consist solely of fine material, or can include fines plus sand and aggregate similar to a concrete mix. Pipeline transport of paste requires that sufficient fine material (minus 20 micron content) is contained within the mix to lubricate the pipeline walls to create a plug flow condition. For concrete, the fine material is supplied through the cement addition to achieve high compressive strength. For paste, the fine material is generally available in large quantities in the form of mill tailings. The paste tailings can be transported underground for use as backfill or discharged on the surface in a tailings management facility (TMF). This natural abundance of fine grained material is not exclusive to mine tailings but is common to many waste streams in many different industries. This makes the disposal of many waste materials very amenable to paste pipeline transport and placement as a non-segregating slurry. The potential use of paste technology for a wider group of waste materials was realized by these authors and others over two decades ago. Through the effort of this small group the use of paste technology has expanded over the years to become recognized as a low cost, environmentally superior, and technologically controllable method of transporting and placing specific material waste streams with a low water content and high placement density. The high yield stress nature of a paste also lends itself well to the blending of one or more coarse waste materials into the fine waste material paste stream. This allows all the waste materials to be transported by pipeline, increases their placement density; decreases the supernatant release/treatment, reduces contaminant mobilization, hydraulic conductivity and oxygen/water reactivity through encapsulation in the paste matrix. The following paper describes the present state-of-the-art use of paste technology in the world today. It also describes future uses of the technology that are under development and speculates on the overall use of the technology for waste management in the future.

Jan 1, 2005

By A. Mertzanis

The way and methods used for the surface mining of bauxite until the end of the twentieth century in the area of Ghiona, resulted in a significant burden to the natural environment, especially in the cases where it covered extended parts of forests and forest areas as well as important geomorphological formations. The impacts from the surface mining of bauxite which in fact constitute the object of this study relate mainly to the interruption of the natural continuity of the land relief and the alteration of the natural geomorphological activities and are due to: a) the alternating excavations with fronts of great heights, b) the depositions of large volumes of waste materials which originate from the revealing of the ore and c) the dense road network constructed in order to get access to the mine locations.

Jan 1, 2006

By D. E. Ranta, Stephen W. Thomas, Clancy J. Wendt

One of the most difficult tasks associated with placer mining is the sampling of the deposit. More placer projects have failed due to inaccurate assessment of the reserves than to any other reason. Within the realm of placers, those containing valuable minerals with a high unit value are more difficult to sample than those with larger bulk, lower unit value minerals. Some items to consider when sampling a placer deposit are as follows: A. A relatively large sample is needed for accurate valuation of the ground being tested. Placers are composed of many sizes of gravel which makes a representative sample difficult to obtain. B. When sampling placers for high unit value minerals such as gold, any error in mineral content of the sample will be magnified in the calculation of reserves. C. Values are usually erratically distributed within the gravel mass. Therefore, some placers with a more uniform value distribution may be adequately assessed with a minimum number of samples whereas a deposit with a highly erratic distribution of values may not be adequately sampled regardless of how many samples are taken. D. The investigation of a placer deposit should be made by, or be under the direction of, a person experienced in the art of placer sampling. F) During a sampling program, items that must be observed and noted in addition to the sample size and valuable mineral content should include boulder size and number, clay content, bedrock conditions, water, frozen ground, false bedrock, and any other physical characteristics that would affect mining of the deposit.

Jan 1, 1992

By P. K. Sharma

The acidophilic and chemolithotrophic Thiobacillus ferrooxidans bacteria grown in the presence of soluble ferrous ions and solid substrates (sulfur, pyrite and chalcopyrite) as their energy source have been used in the investigations. The cell surfaces are characterised by zeta-potential, contact angle, FT-IR and FT-Raman studies. The adsorption isotherms of the cells on pyrite and chalcopyrite indicate that the adsorption begins on pyrite at a much lower equilibrium cell population than on chalcopyrite. The isotherms tend to level off at a cell adsorption density corresponding to a horizontal monolayer coverage when the geometrical dimensions of the cells are considered. In the presence of cells, the xanthate flotation of pyrite completely depressed, whereas chalcopyrite flotation is unaffected. The results suggest that chalcopyrite can be selectively floated from pyrite, also at a neutral pH region, in the presence of T. ferrooxidans cells.

Jan 1, 1999

By Mark C. Holton

The mining industry has recently been. - experiencing a difficult period. Escalating costs, lower grades and deeper level mining, are a few of .the reasons' why interactive graphics or CADD (computer aided design and draughting) systems are increasingly being used. CADD systems which support powerful and flexible mining applications have great potential for making all forms of mining more efficient and effective. There are many application programs which address almost every aspect of mining. Most of these programs originated to satisfy a particular need. Graphics and other features were added until they, reached a point where they were commercially viable as a mining package. Because of their evolution these packages, lack many CADD-type features. Today there are powerful personal computers (PC's) and engineering workstations running the best CADD systems available. These systems, support hundreds of applications in almost every discipline. Mining was until recently not well supported by interactive graphics vendors because of the highly variable nature of mining and the lack of common standards. Users of CADD systems have experienced the benefits of CADD and come to expect similar features from graphic mining packages. Several developers of mining packagers have either attempted to include some CADD features or make their packages compatible with one or other CADD system. Mining can benefit greatly From a combination of interactive graphics (or CADD) and the right mining application software.

Jan 1, 1989

By E. S. Erickson, R. L. Stone

Introduction Evidence from blast furnace operations has indicated that using pellets with a higher ISO low temperature reducibility, a lower SiO2 content, and better resistance to low temperature degradation results in considerable coke savings and improved furnace operation. Although these benefits could not be directly related to reducibility differences alone, we believed there was sufficient evidence of the advantages in improved pellet reducibility to warrant laboratory investigation of ways and means to effect such improvements. It is well known that pellet reducibility can be significantly altered by changes in the basicity and the amount of non-iron oxide constituents. Past work (Friel and Erickson, 1980, 1982; Saeki et al., 1977; Thanning, 1974) has shown that with increased MgO contents, and at optimum CaO/S1O2 ratios, significant improvement in low temperature reducibility can be attained. The improved properties of such fluxed pellets have reportedly led to increased blast furnace efficiency and productivity (Saeki et al., 1977; Ilmoni, 1975). Less well known, however, is exactly what factors control reducibility in acid pellets. Because of this gap in knowledge, studies were undertaken of the factors affecting reducibility in acid pellets and to estimate their relative significances in modifying reduction behavior. This paper describes that part of our work done to determine the effect of bentonite on reduction behavior. Our approach was to first examine the effect of bentonite's presence on as pure an iron oxide as possible (i.e., a magnetite "superconcentrate" containing about 0.2% SiO2) so as to eliminate any gangue-binder interaction. The next step was to look at bentonite effects on concentrates with only limited amounts of gangue (containing about 1% SiO2), but of two different types, simple and complex silicates. Last, we

Jan 1, 1988

By Richard L. Gordon, William A. Vogely

ENERGY POI.ICY-PRINCIPLES AND THEIR PRACTICE Persistently, at least since the end of World War 11, governments have intervened broadly, deeply, and incoherently in major energy markets. If we take a broad definition of energy that encompasses gas distribution and electric power, we can observe regulations of even older vintage. This trend, of course, is not unique to energy. Expansion of government controls has occurred in many areas. The relevant basic question about energy regulation, therefore, is not why is energy special, but whether any general principles exist to explain the wisdom of existing regulations. This review takes place at a time, the middle 1980s, in which a massive onslaught is being undertaken against government regulation. However, the present chapter is influenced primarily by my observations of the failures of energy regulations and not by any inspiration from those ideologically opposed to government intervention. Several subquestions arise in policy appraisal. A primary need is to establish clear objectives and determine the consistency between these goals and the policies imposed. Thus, the first step is to set objectives. The next is to outline ways to attain these goals. However, it should be recognized that many apparently distinct options are economically equivalent. When the goal is to charge producers or consumers for something, it is possible to attain the same result through either government ownership or taxing private transactions. The tax can raise the price to the level the government would have charged if it were the owner. Creation of a Department of Energy is not necessarily any different from having separate energy agencies well coordinated by some small supervisory body. Thus, a distinction should be made between substance and form in policymaking. The critical substance concerns such matters as whether the government imposes financial penalties, incentives, or rules to attain a goal. Then, there can be many equivalent ways to implement the basic policy form. The second prior illustration suggests that one favorite question is how to attain proper integration of policy. At various times, voices on either (or even both) sides of the Atlantic have called for a coordinated energy policy. The U.S. Paley Commission made this a primary goal for future policy. The western European governments that were the founding members of the Coal and Steel, Economic, and Atomic Energy Communities spent much time in the middle fifties and much of the sixties trying futilely to agree on an energy policy. (See Gordon, 1970 for an annotated review). The energy price rises of the 1970s rekindled United States interest in coordination. However, astute observers of the problem such as O. C. Herfindahl of the United States and Maurice Allais (1 962) in France warned the discussions confused form with substance. The crucial issues were what were the goals and what were the best types of policies to attain such goals. Policy suffered, not from poor organization, but from discord about the goals and how to attain them. All this suggests that we need principles to guide policy appraisal. The branch of economic theory known as welfare economics concentrates on providing guidance about the problems of policymaking. The theory examines both what

Jan 1, 1985

By Thomas D. Kaufmann, Robert C. Drury

Few factors are as important as fluctuations in aggregate economic activity and exchange rates in determining the profitability of mineral investments. Macroeconamic theory explains how the two factors are interconnected in today's world and in tomorrow's. We can use macro¬economic theory to lessen some of the risks in mineral investments. And in the current state of the world the risks are high. The above paragraph summarizes our argument. Our goal in this paper is to examine the nature of contemporary business cycles so as to explain their implications for the metal industries, particularly the implications for capacity. Thus, our first section examines the workings, causes, and history of the recent economic fluc¬tuations. In doing so we must understand how current world economy is interconnected, that is, how economic events in one country are trans¬mitted to the rest of the world. Our view is that governments and central banks are key actors in the creating of economic fluctuations. Then, in section two, we work out the implications of section one for the metal industries focussing on comparative advantage, trade, and capacity decisions. Over the last fifteen years the world economic system has had slow overall economic growth and has had strangely unpleasant recessions. While future business cycle will not repeat the de¬tailed pattern we have seen, there will be similarities. The similarities need to be under¬stood before investment occurs. The slow growth in the world economy since the early 1970s has aggravated the problems from business cycles, created its own problems, and has partially hidden the effects of other events. Major realignments of currencies are likely to take place over a business cycle. The nature of the causes of the cycle will determine the direc¬tion of change in the exchange rates. For example, whether a USA recession will be accompanied by a weaker or a stronger dollar will be determined by the cause of the recession. The realignment of currencies over a business cycle leads to a realignment of comparative advantage in the metal industries. Thus, not only will world metal consumption vary over the business cycle but the impact on various countries' metals industries will differ consi¬derably. Competitiveness often depends more on the value of the dollar than it does on inherent efficiency and wage rates. Capacity decisions are inherently riskier due to the country specific nature of exchange rate risk. A realignment of currencies changes the pattern of trade if and only if the country with the cheaper currency also has idle capacity. The importance of our topic is indicated by Table 1 which shows the impact of cyclical and exchange rate shocks on the USA metal industry. In the cyclical downturn, from the peak of 1979 to the trough of 1982, consumption dropped by a fifth to a third. Metal price moved in the same

Jan 1, 1989