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By IPMI Educational and Scientific Foundation

It is with great pleasure that we announce the availability of this fourth issue of the IPMI Journal, a publication of the International Precious Metals Educational and Scientific Foundation. This digital peer reviewed publication has been created as a vehicle for the sharing of technical information related to the science and technology of precious metals. Since 1976, the International Precious Metals Institute has championed the exchange of information of critical importance to the precious metals scientific and commercial communities through its various communications vehicles. This has included instructional videos, annual conference symposia, special topic committee meetings, regional seminars, and professional and student achievement awards. Due to the breadth of important topics related to all aspects of precious metals, it has been the vision of the IPMI to provide a publication available to the general public that would become a key source of pertinent topics containing high quality publications by experts in their fields of study. Historically, the IPMI has attracted world renowned experts in many fields (including Nobel Laureates Henry Taube, Ei-ishi Negishi, Robert Grubs, Professor Ben Feringa, and David MacMillan) in the dissemination of discoveries, inventions, and industry proven practices. Such information has a total value greater than the sum of its parts as seemingly unrelated innovations from distinct focus areas can be adapted to solve problems. Because of this important characteristic of information exchange, we have decided to create a digital journal, available to the general public, that will not only communicate state of the art discoveries and sound practices, but will also review historical communications from the IPMI’s archives that have value and use even in today’s environment. On behalf of the members and leaders of the IPMI, we hope you will find value in this new publication.

Dec 1, 2023

By C E. Vidal

Geological exploration and mining development increased their intensity and rate of success during the last five years in Peru. Particularly relevant are the mining projects of Yanacocha and Pierina for epithermal Au and Ag. Also relevant are the new mining operations at Iscaycruz and Uchucchacua for limestone replacement Zn- or Ag-rich base metal skarn deposits. Miocene continental volcanics host the low-grade but near-surface orebodies of the Yanacocha mining district in Cajamarca. Several deposits have been mined since 1994 with open-pit and heap-leach gold production increasing from 300 000 ounces to 1 300 000 ounces in 1998. In a similar geological setting, but with three times the grade of Yanacocha, the Pierina valley-leach operation in Ancash is set to produce 800 000 ounces Au during 1999. At Iscaycruz in Lima, Cretaceous limestones host massive pyrite and sphalerite skarn deposits with 10 to 20 per cent Zn. Mining and milling were started in 1996 with last yearÆs production rising to 180 000 tonnes of Zn concentrates. At Uchucchacua, selective underground mining of fracture-controlled Ag skarns, with 400 to 420 g/t, has been recently increased from 1200 to 2000 tonnes per day to produce 5.5 million ounces Ag during 1998. Advanced exploration projects are located in the framework of nine Phanerozoic metallogenic provinces. Mineral deposits of preferred attention are precious metal disseminations and veins, base metal replacements and skarns, porphyry Cu (Mo-Au), Mississippi-Valley-type Zn and base metal volcanogenic massive sulphide deposits. Geological discovery of new orebodies enables a sustainable development of the mining industry in the country.

Jan 1, 1999

The injection of grouting compounds into the consolidated rock surrounding underground mine workings has long been practiced for the purpose of sealing against water flows. In more recent times however, grout injection has also found application for the purpose of rock mass reinforcement. Mines in Europe,America, Australia and elsewhere now make use of significant quantities of chemical grouts in both preventative and remedial strata control work.   Despite the increasing usage of grouting for these purposes, there is limited knowledge about the effects of grout injection on the rock mass, and acceptance of the method is by no means universal. In some cases grouting has been applied with little understanding of the factors that control its effectiveness, and disappointing results have been obtained.   This paper reviews the basic concepts of how grout injection may contribute to the control of rock surrounding underground mine excavations, and highlights the factors which may serve to limit the efficacy of the method and the uncertainties that complicate the appraisal of grouting as a method of strata control.

Jan 1, 1994

By Charbel Khoury, Kwabena Ofori-Awuah, Kofi B. Acheampong

"Following heavy rains in spring of 2014, Prince George’s County officials issued a mandatory evacuation for homes in the Piscataway Hills subdivision of Fort Washington, Maryland where a landslide along a 1700-foot hillside destabilized homes, collapsed the single access road, and resulted in water and sewer mains break. Forensic investigations, including geologic assessments, test borings and in-situ Cone Penetrometer and Dilatometer soundings, were performed to evaluate subsurface conditions and provide stabilization options for the roadway and slopes. Post-failure ground movements were monitored using inclinometers. Critical failure planes were identified within the underlying 30-foot thick Marlboro Clay formation, a known geologic hazard with historic occurrences of landslides and slope failures.This paper discusses the remedial design for stabilizing the landslide and 60-foot hillside slope failure, and protecting the roadway. Amongst several feasible options, driven piles were selected in consultation with the County and retained contractor based on cost, environmental impacts and site constraints. Constraints included private ownership of hillside slope, upslope buildings safety; deep-seated failure, relocation of underground water and sewer mains, and accelerated construction schedule.Pile design included global slope stability analyses and lateral pile analyses using several loading configurations to optimize pile geometry and spacing, and determine a value-engineered design satisfying both serviceability and strength limit states to achieve long-term stability with factor of safety of 1.3. Soils within the active landslide plane were assumed to provide no resistance, while soils below the failure plane provided lateral resistance. This stabilization scheme, which extended along the 1700-foot roadway section and toe of hillside slope area, consisted of 410 steel HP16x141 piles in two to three rows driven to depths between 60 and 70 feet below the Marlboro Clay stratum at 5 to 7-foot spacing."

Jan 1, 2017

By M. C. Chang, J. Dasher

The Crucible mine in Pennsylvania, operating on Pittsburgh seam coal, is rated at 5000 tpd. The washing plant, built in 1943, is rated at about 400 tph, using hydroseparator boxes to wash the coarse coal (4 x 5/16 in.) and hydrotator units for the fine coal (5/16 x 0). It is generally acknowledged that gravity concentration equipment cannot be used efficiently to bene-ficiate coal finer than about 65 mesh. Before the present flotation circuit was installed, Crucible recovered its fine coal slurry, predominantly —24 mesh material, by passing it through a battery of five 14-in. and one hundred and ten 3-in. Hey1 & Patterson cyclones in parallel with a 75-ft Dorr thickener. About two thirds went to the cyclones and one third to the thickener. Underflows from cyclones and thickener were filtered, respectively, in one 12-disk Eimco and two 4-disk Oliver filters fitted with stainless steel cloth. The resulting cakes were added to the coarse metallurgical coal. The filtrates, overflow from the 3-in. cyclones, and thickener overflow were recycled to the coarse coal plant. The three major problems encountered in this system became acute when the mine switched from track-mounted machinery to the more economical off-track equipment. The quality and uniformity of product declined, too much slime accumulated in the circuit, and waste pond disposal became highly impracticable. Lowering of Quality and Uniformity: Since the filter cake was not beneficiated in any way, addition of this material, which contained about 18 pct ash. would certainly lower the quality of metallurgical coal. Difficulties of handling the high-ash, high-moisture cake were compounded by the lack of adequate blending facilities at the mine, making it impossible to maintain uniform feed for the coke ovens. For a two-month test period, to verify the source of trouble, all filter cake was excluded from the metallurgical coal. The excluded filter cake was stocked in the yard. Slime Buildup: The moisture retained in the coarse coal products and the filter cake provided daily the only means of slime bleed from the circuit. As this bleed was not enough to offset the incoming fines in the raw coal feed, there was excessive buildup of slimes. To operate at all, it was necessary to purge the system each weekend by pumping all the solids from the thickener to a waste pond. The slimes built up during the week progressively increased the apparent viscosity and density of the circulating plant water, so that hydroseparators and hydrotator units had to be constantly adjusted. Uniformity, yield, and quality of the metallurgical coal suffered in consequence, and the filter cake ash and moisture contents increased from Monday to Friday. Limited Waste Disposal: Location of the plant does not permit unlimited waste pond area. Maintenance of a waste pond for the purpose of emptying the thickener during weekends became a costly burden that could not be tolerated. HOW THE PROBLEMS WERE SOLVED The flowsheet (Fig. 1) chosen to overcome these difficulties is considered the one most economical to install and operate. In a preliminary change made before the flotation circuit was installed, the cyclones and thickener were first operated in series, the overflow from the 3-in. cyclones, after flocculation, being discharged into the thickener and the thick-

Jan 1, 1960

By J. Kern, T. F. Torries

Identifying high value areas of unmined coal when large quantities of coal are available relative to annual markets is difficult because of the uncertainty of when the coal is to be mined. A GIS based methodology developed to value reserve coal in a producing coal region for the purpose of ad valorem taxation also identifies high value areas for mining investment. The methodology is unique in that it accounts for most mining, environmental, and market factors to determine when specific properties are to be mined. The methodology and data base are useful for directing regional exploration and acquisition activities toward most favorable areas.

Jan 1, 1999

By H. M. Chikashi

Keywords: Pyrometallurgy, furnace, bath agitation, regression analysis, entrainment This paper presents the results of linear regression analysis of the influence that each component of slag has on the losses of copper in slag-cleaning-furnace slag. Data used for the analysis are actual plant data collected over the past two years of operation. Facts obtained from the study will be helpful for smelter management to control these components in the flash smelting furnace feed and slag, to levels which will enable better control of copper in slag, and smoother operation of the KCM slag-cleaning furnace.

Jan 1, 2011

By A. Tsekov, Stefan Neufeind, T. Angelov, G. Savov

"A complementary ion exchange/solvent extraction process for the recovery of copper from low-grade ores developed by Iontech Engineering Ltd. is described. It has successfully been implemented on a full-scale plant level at the Buchim Copper Mine in Macedonia, yielding a maximum copper cathode production of 2400 tonnes per year. Technical and economic aspects of three years of operational experience are comprehensively compared with the Asarel Medet copper plant in Bulgaria, which is utilizing conventional solvent extraction in the enrichment/purification step. INTRODUCTION The concentration and separation of copper from primary leachates is one of the key operations in the hydrometallurgical processing of oxide ores (Langner, 2011). Conventionally, this basic operation is conducted by submitting the pregnant leach solution (PLS), with a 1–5 g/L Cu content, from the initial sulfuric acid leach to a solvent-extraction (SX) process in which copper reports to the organic phase (see Figure 1). After phase separation, the metal is stripped from the extractant/diluent mixture employing sulfuric acid to furnish a concentrated metal solution, usually containing 40–50 g Cu/L. The final products of the overall process are copper cathodes, which are obtained from a terminal electrowinning step.Although considered as “technology of choice”, SX to date is still suffering from several drawbacks, such as the risk of poor phase disengagement and the high capital costs of solvent-extraction plants. Especially, the processing of leachates with lower copper tenors (< 1 g/L) is often economically less attractive. As a result, tremendous efforts have been dedicated to the evaluation of alternative technologies to address these challenges."

Jan 1, 2015

By K. Whysner

The recycling of metal resources in mining influenced water (MIW) requires a paradigm shift from within the mine water treatment industry. The potential to recover zinc for beneficial use in the micronutrient fertilizer industry was investigated through a survey of zinc micronutrient fertilizer representatives. An application of the findings to a case study of the Argo Tunnel influent MIW was then implemented. It was concluded that the potential to beneficially reuse MIW residuals in fertilizers exists; the current process sequences of treatment will need to be modified if metal recycling is to be prioritized.

Feb 27, 2013

The Library Board of the United Engineering Society is desirous of bringing closer to you the facilities and usefulness of your splendid Library. To that end, they have inaugurated a Service Bureau whose duty it shall be to maintain such a staff of expert searchers and translators as to insure prompt and thoroughly efficient service to those of our members whose absence from New York makes it inconvenient for them to pesronally consult the books and periodicals on our shelves. The Service Bureau is also arranging to keep such members as may desire it, posted on the current publications of any engineering subject in which they may be specially interested. The Charter of the United Engineering Society does not permit the Library to carry on any work of a commercial character and, therefore, the prices charged members for this service have to be kept down to a merely self-supporting basis. All the work done by the Library Service Bureau is strictly confidential.

Jan 9, 1915

By G. O. Rading, B. O. Odera, M. J. Papo, R. Couperthwaite

"Platinum-based alloys are being developed with microstructures similar to nickel-based superalloys for potential high-temperature applications in aggressive environments. Since the chemistries of nickel and platinum are similar, Pt-based alloys can be made with gamma prime ~Pt3Al precipitates in a gamma (Pt) matrix. Currently, the Pt-Al-Cr-Ru system is one of the bases for developing Pt-based alloys, where Al allows the formation of thePt3Al precipitate and also gives protection from the alumina scale formed, Cr provides oxidation resistance and stabilization for the L12~Pt3Al phase, and Ru provides solid solution strengthening in the (Pt) matrix. Four Pt-Al-Cr-Ru-V and two Pt-Al-Cr-Ru-V-Nb alloys were made, with compositions based on a quaternary alloy, ~Pt82:Al12:Cr4:Ru2, which hadpreviously been identified as having optimum properties. Four of the as-cast alloys had the targeted two-phase structure of ~Pt3Al and (Pt), and two were single-phase ~Pt3Al. Vanadium partitioned more to (Pt) than to~Pt3Al. There was an improvement in hardness compared to the quaternary alloys. The best addition of V was ~15 at.%; higher additions resulted in brittle intermetallic phases of the Pt-V system. The effect of Nbcould not be ascertained because of its high losses."

Jan 1, 2015

By Kobayashi M, Kametani H

Particles of nickel flash furnace malle (45 per cent i) were oxidized in a dropping-particle furnace. The particles melted and the molten drops simulated those produced by the atomization of molten matte. The partly oxidized droplets were quenched and then reacted with silica flux to form high-grade matte (70 per cent i) and a fayalite slag. This paper describes the experimental equipment and deals with chemical aspects of the investigation such as volatile impurity distribution and thermodynamic considerations. The overall behaviour of minor elements such as Cu, Co, As and Pb was similar to that observed in conventional converting.

Jan 1, 1986

By Lawrence M. Zanko

Eighteen coarse taconite tailings samples were collected in 2000-2001 from five western Mesabi Range taconite (iron ore) operations located in northern Minnesota, i.e., EVTAC, Hibbing Taconite (Hibtac), USX Minntac, Ispat Inland (Minorca), and National Steel Pellet Company (NSPC), to test their physical, geological, chemical, and mineralogical properties [Zanko, L.M., Niles, H.B., Oreskovich, J.A., 2003. Properties and aggregate potential of coarse taconite tailings from five Minnesota taconite operations, Minnesota Department of Transportation, Local Road Research Board, St. Paul, MN, Report No. 2004-06 (also as Natural Resources Research Institute technical report, NRRI/TR-2003/44)]. The goal was to assemble a body of technical data that could be used to better assess the potential of using a crushed taconite mining byproduct like coarse tailings for more widespread construction aggregate purposes, primarily in roads and high¬ways. An important part of the mineralogical assessment included X-ray diffraction (XRD) analyses and microscopic (polarized light microscopy, scanning electron microscopy, and transmission electron microscopy, i.e., PLM, SEM, and TEM, respectively) evaluation of the size and shape (morphological) characteristics of potentially respirable microscopic mineral particles and fragments. Quantitative mineralogy, based on XRD analyses, showed that the dominant mineral in all samples was quartz (55-60%), followed by much smaller amounts of iron oxides, carbonates, and silicates. Specialized microscopic analyses and testing performed by the RJ Lee Group, Monroeville, PA, on both pulverized (-200 mesh, or 0.075 mm) and as-is sample composites showed that no regulated asbestos minerals or amphibole minerals were detected in the western Mesabi Range samples. A small number (26) of non-asbestos and non¬amphibole mineral cleavage fragments/mineral fibers were detected by SEM out of 1000 fields analyzed, but most were identified as min¬nesotaite and talc, silicate minerals common to the Biwabik Iron Formation. Amphibole minerals, absent in coarse tailings samples from the five western Mesabi Range taconite operations, were present in a single eastern Biwabik Iron Formation sample collected in 2003 for Lake County from the Cliffs Northshore operation in Silver Bay, MN. Importantly, the Superfund Method for the Determination of Releasable Asbestos in Soils and Bulk Materials [United States Environ¬mental Protection Agency (USEPA), 1997. Superfund method for the determination of releasable asbestos in soils and bulk materials, EPA 540-R-97-028, U.S. Environmental Protection Agency, Washington], as modified by Berman and Kolk [Berman, D.W., Kolk, A.J., 2000. Modified elutriator method for the determination of asbestos in soils and bulk materials, Revision 1: Submitted to the U.S. Envi¬ronmental Protection Agency, Region 8, May 23, 2000] failed to generate any protocol fibers, i.e., fibers longer than 5 µm and thinner than 0.5 µm, from either the western coarse tailings samples or the single eastern Biwabik Iron Formation sample. The combined findings suggest coarse tailings and other taconite mining byproducts should be treated with the same common sense safety and industrial hygiene approach practiced for all mineral-based materials that have the potential to generate respirable dust. © 2007 Elsevier Inc. All rights reserved.

Jan 1, 2007

By L. B. Phelps

The nation is confronted with thousands of acres of abandoned coal lands. In Pennsylvania alone, these lands have been estimated to cost $15 billion to reclaim (Pennsylvania Bulletin, 1985). One way to deal with this problem is to provide a mechanism by which the active mining industry can undertake to remine certain of these abandoned mine areas. Remining is classified as reaffecting previously mined areas in order td extract the remaining coal reserves while improving the environmental quality of these lands through land restogation and abatement of pollutional discharges. However, there currently is a disincentive for operators to plan to extract reserves on these abandoned mine lands which have preexisting pollutional discharges. Therefore, they presently avoid them. This is because of the "potentially unlimited liability of post- mining treatment for any discharges that would remain after mining? (Pennsylvania Bulletin, 1985).

Jan 1, 1987

By Augusto V. Ramírez

El presente texto describe el proceso e historia de una de las minas más importantes del Perú: Santa Bárbara, ubicada en Huancavelica (Sierra Central). El D. Amador de Cabrera, natural de la ciudad de Cuenca (España), fue el primer propietario de la mina Santa Bárbara - en tanto granjeó de la estirpe del cacique Navincopa –cinabrio cristalizado– en los cerros de Huancavelica desde mucho antes de la llegada española. Posteriormente, fueron los godos, quienes introdujeron el conocimiento empírico del azogue como base para obtener mercurio o hidrargiro, sin intuir que luego el cinabrio sería importante para procesar el mineral argentífero. En 1560, Bartolomé de Medina divulga su método de "purificación de la plata" por medio del mercurio, convirtiéndola en condición sine qua non para la producción de plata en las colonias. Este afán lo realizarían por ‘factorización’, donde se concesiona el transporte a un súbdito español dado al comercio bajo, cuya responsabilidad se limita al azogue hasta las minas. El azogue será realizado en cientos de miles de pequeñas bolsas especiales forradas con cuero de llama o carnero que llamaron badanas y cuya principal bondad era encajar perfectamente en los lomos de las llamas para no dañarlas.

Aug 1, 2016

By John W. Wagner, Robert K. Willardson

Single crystals of Pbl-xSnXTe have been grown from The melt under liquid B2O3 using the Czochralski technique. The PbTe-SnTe crystals were grown from near-stoichiometric melts and from melts with slight deviations from sloichiometry. Crystal growth rates ranging from 1 mm per hr to 1 cm per hr were employed, the latter being generally used. Several investigations were performed to characterize the single crystals grown In this study. The phase diagram of the PbTe-SnTe system was examined. X-ray analyses verified the single-crystal character of the crystals, and powder pattern lattice parameter determinations showed that Vegard&apos;s law was followed within the limits of the experimental error. The as-grown crystals were p-type with apparent carrier concentrations of -8 x 1018 to -8 x 1020 carriers per cu cm. Hall coefficients, resistivities, and carrier mobilities were determined as a function of composition. Dislocations were revealed by an electrolytic etch, and the crystals were found typically to contain 2 to 4 x 105 dislocations per sq cm. Microhardness measurements were performed; no maximum in the Vickers hardness us composition curve was seen. Mass spectrometry was used for impurity analyses, and the crystals were found to contain 1 to 2 x 1017 total p-type impurities per cubic centimeter. Distribution coefficients were calculated for the major impurities which were Na, Mg, Al, Si, Cl, and Zn. RECENTLY interest has been stimulated in the preparation and characterization of many alloys of the binary compound semiconductors. This interest is due primarily to the almost unlimited possibilities of adjusting the semiconducting characteristics of these materials by varying the alloy compositions. One alloy system which has been receiving extensive investigation is the PbTe-SnTe system, since these alloys show promise of being useful as emitters and detectors of electromagnetic radiation in the spectral range of 8 to 14 µ. This paper reports on the growth of PbTe-SnTe single crystals by the Czochralski technique and investigations of the general properties of these crystals. The phase diagram of the PbTe-SnTe system was investigated so that specific alloy compositions could be attained. I) CRYSTAL GROWTH The PbTe-SnTe single crystals were pulled from the melt using the Czochralski technique. Generally, the crystals were grown from near-stoichiometric melts, although special growth runs were made from both lead-rich and tellurium-rich melts. Growth of single crystals from up to 5 pct lead-rich melts presented no problems; however, melts with tellurium in excess of -1 pct caused volatilization problems which generally made crystal growth impossible. All melts were prepared from high-purity materials as follows: 1) lead— 6 N— Cominco (Cominco Products, Inc., Spokane, Wash.); 2) tin—5N—Cominco; and 3) tellurium— 5N+— American Smelting & Refining Co., Plainfield, N.J. No further purification of materials was undertaken in this study. The elements were reacted at -1000°C in a vacuum-sealed silica tube for a few hours, a gentle rocking action being used to ensure thorough reaction. The cast ingots were then transferred to a silica crucible for crystal growth. A schematic diagram of the growth apparatus is shown in Fig. 1. The Vycor tube is sealed at both ends by O-ring flanges so that a vacuum or a positive pressure may be maintained in the growth chamber. The pull rod and crucible may be rotated; all crystals produced in this study were grown with the crucible sta-

Jan 1, 1969

The Engineering Index Service, 29 West 39th St , |New York, N Y. (A division of the American Society of Mechanical Engineers ) This Service is the most complete guide to engineering articles as they are published in current engineering literature of the world All branches of engineering are covered It is prepared on standard library filing cards which are mailed every week. Each card contains complete information as to the source of the article indexed and an annotation, or a description, in which there is sufficient information to enable one to select articles of particular interest. With this Service those interested in any phase of engineering may, with a minimum of time, keep in immediate touch with engineering developments throughout the world There are 225 divisions of the full Service, 31 deal directly with mining engineering, and 15 with metallurgical engineering Divisions may be subscribed to separately or in any desired combinations The cost depends upon the extent to which the Service is used Many divisions are priced at $7 a year. Complete information may be had upon request. A suggested mining engineering group of divisions only, follows Division 1, Abrasive industry, 17, Bituminous materials, 21, Brick industry; 33, Clay products industry, 35, Coal mining industry, 36, Coal preparation industry, 76, Fuel engineering, 78, Geology, 79, Geophysics, 82, Gypsum industry, 99, Insulating materials, 108, Lime and limestone products industry, 109, Liquid fuels, 111, Lubricants and lubrication; 122, Metal mining industry, 127, Mineralogy and rare metals and elements, 128, Mine safety and ventilation, 129, Mining engineering and mineral industry; 130, Mining geology; 136, Natural gas and gasoline industry; 141, Nonmetallic minerals industry, 143, Oil field operation, 146, Ore treatment, 151, Petroleum engineering and industry, 152, Petroleum geology; 153, Petroleum refining industry, 154, Petroleum

Jan 1, 1933

By McHenry Mosier

This progress report on a national survey of the use of detachable bits in metal mines covers 10 mines. It presents comparative costs for drilling with conventional and detachable bits, describes the reconditioning of drill steel, and gives various data on rock drilling at these particular mines. Reports to follow will include similar data on drilling at other metal mines in the United States. ACKNOWLEDGMENTS This report is based on costs and data developed and furnished by the operators of the mines visited. The author is greatly indebted to the officials and staff members at these mines for their cooperation and assistance.

Jan 1, 1936

A school grows big only as its usefulness increases and it will shrink rapidly if inefficient. Usefulness must be recorded in terms of service within the economic structure of the Commonwealth. Under this premise, modern mineral industries colleges must recognize and give equal significance to three interrelated, interdependent functions of service: namely, (1) resident instruction, on both the undergraduate and graduate levels; (2) research under an experiment station plan; and (3) extension training under three classifications, class instruction, correspondence instruction, and informal instruction. To train potential leaders for the mineral kingdom, to discover and teach new truths is only half of the job. Through extension training, equal attention must be given to the on-job, vocational-technical, upgrading of skilled workers on the production line. Similar to the School of Agriculture, the School of Mineral Industries is the only one in the Commonwealth offering the three functions of service in each of the subject-matter fields in mineral arts and sciences. The functions of service must be based on the modern conception of mineral conservation (Fig. 12). Conservation of minerals differs from conservation of natural resources in general because man must find new mineral deposits and excel the geologic forces of nature in processes of concentration. True mineral conservation, therefore, may be defined as energetic discovery,

Jan 1, 1950

By Frank W. Luerssen

Introduction "Austerity" is perhaps an overly generous description of the past three years in the American steel industry. Steel plants operated at an average of only 57% of their capability in 1982-84. The dismal losses for last year are still being totaled. But during the two years before this period, American steelmakers recorded an aggregate net loss of a staggering $6.8 billion. Steelmakers responded by closing numerous marginal facilities. And production capability was cut by 13.6 Mt (15 million st). Capital expenditures still averaged $2 billion annually. But this was inadequate to maintain the existing base of steelmaking facilities. The general economy experienced a satisfactory recovery during this period. American steel, however, continued to suffer from a lagging recovery in the capital goods sector. This was due to record penetration of its domestic market by imports and from very weak realizing prices on the volume that was available. In addition to the direct influx of offshore steel products - which itself depressed prices - the industry also became painfully aware of the growing importance of "indirect" imports. These came in the form of steel-containing producer and consumer durables. Industrial equipment and autos fabricated from foreign steel accounted for the equivalent of 6 Mt (6.5 million st) of lost market opportunity for domestic steel-makers last year. That is over and above the 23.5 Mt (26 million st) of direct steel imports. Given these factors, Inland Steel was not spared from the threeyear downpour of red ink. Despite its record of continuing modernization in steel, our single-plant location in the world&apos;s best steel-consuming market, and the high proportion of consumer durables related products, such as cold rolled and coated sheet in our mix, Inland suffered aggregate losses of $277 million during the 1982-84 period. Strategic Planning The foregoing establishes a perspective - a base from which we have restructured our view of the steel industry, and of our own role within that picture. Until possibly two years ago, this present weakness in steel demand was viewed around the world as an aberration, eventually to pass. By contrast, it is now recognized that austere times are the normal steel environment. The topic here is management of resources. This implies an emphasis on strategic planning. It is worthwhile to examine some of the more critical assumptions that were driving strategies among a number of steel companies just before the 1980s. Those projected characteristics of the future steel environment were arrived at through painstaking analysis. They were carefully and heavily quantified and were generally shared by outside observers and our peers within the steel industry. • First, the assumption was made that domestic steel demand would continue to grow at an average rate of 2% per year. • Second, it was assumed that this growth in the American market would continue to be filled predominantly by US mills. It was believed that increases in steel and steel-related demand overseas would absorb much of the ominously growing capacity of third

Jan 6, 1985