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By Aurel Goodwin

MSHA is the regulatory Agency which administers the Federal Mine Safety and Health Act. Although MSHA's principles largely derive from this Act, they do not exculsively derive from it. One might expect that our principles are contained in the regulations we have published to implement the Act. To a degree, this is true; but the regulations we have now were developed and published before the current Act became effective. For this reason, as well as others, there are some principles that we support which are not evident in our regulations, or in the Act. One of these is the ALARA principle. This principle requires that all unnecessary exposure be avoided; that is, all exposures should be kept "As Low As Reasonably Achievable." Almost all professionals in radiation control can agree with this broad principle; but it would be difficult to get agreement on a regulation which would translate the principle into industry practice. Rather, our regulations specify a limit to exposure for any individual. For radon daughters the current limit is four working level months per year. By having an explicit limit such as this, the ALARA principle often becomes lost and the limit becomes the goal. The principles contained in the Act are equally broad in scope. The principles apply not only for radiation protection, but also for toxic substances and harmful physical agents. The Act states that standards for such substances or agents shall most adequately assure on the basis of the best available evidence that no miner will suffer material impairment of health or functional capacity, even if such miner has regular exposure to the hazards dealt with for the period of his working life. The Act also provides that, although protection of health must be our foremost concern, other considerations shall be the latest scientific data in the field and the feasibility of the standards. Our regulations reflected similar principles when they were developed and promulgated. From experience with other health and safety laws, Congress realized that setting and meeting an exposure limit may not be sufficient to prevent disease. The Act, therefore, contains a detailed description of additional provisions to be included, where appropriate, in mandatory safety and health standards. One of these additional provisions requires that miners be informed about the nature of the hazards associated with their job and about the means for their own protection. Another provision requires the use of labels and other forms of warning to inform miners about the hazards, about proper precautions for safe use or exposure, about relevant symptoms of overexposure, and about emergency treatment. We have partially implemented these provisions through regulation. The Act requires also that standards shall prescribe protective equipment and control of technological procedures and that they shall provide for the monitoring of miners' exposures. We have implemented this provision to a degree also through regulation. Finally, the Act specifies that, where appropriate, a mandatory standard must prescribe the type and frequency of medical examinations in order to most effectively determine whether the health of miners is adversely affected by exposure. Additionally, when a determination is made that a miner may suffer material impairment of health or functional capacity by reason of exposure, that miner must be removed from such exposure and reassigned. In order to encourage miners to take the medical examination, the Act also provides that the miner shall not suffer loss of pay as a result of being reassigned. This additional provision on medical examinations has not been implemented by regulation for radiation hazards, nor for most other toxic substances or hazardous physical agents. We believe that this conference will provide us with valuable information on medical examinations for radiation exposure, as well as on other considerations to be used in future regulations. We still question whether our basic exposure standard of four working level months per year is adequate to protect a miner's health. This conference is indeed timely because both MSHA and NIOSH have been reviewing this issue for some time. I would like to reemphasize MSHA's commitment to education and training. MSHA strongly believes that miners should be informed fully about the real and potential hazards associated with their work. They should know the nature of the hazard and the means for protecting themselves from the hazard. The Act also emphasizes the need for training miners by requiring that new miners receive 40 hours of training before working underground and 24 hours of training before working on the surface. The Act also requires eight hours of refresher training annually. This training must include information on the relevant health hazards and the potential consequences of overexposure. Before I close, I would like to mention briefly another source of principles that MSHA often consults to obtain guidance for both the development and enforcement of regulations. These are the various court decisions that are handed down from time to time. Two in particular that I want to stress are the recent Supreme Court Decisions on benzene and cotton dust. Although neither of the decisions has a direct impact on mining or radiation, they do clarify some general principles and directions for regulatory agencies, such as the role of cost-benefit analysis and the need for risk assessment. In closing, I wish us all an open exchange of information for a productive and useful conference.

Jan 1, 1981

By M. A. Trevits

Methane gas is an ever-present problem facing the underground coal mining industry. Mine operators are mandated by law to maintain safe concentrations of methane gas within the mine environment. Ventilation is used by all mine operators to reduce gas concentrations. When gas emissions are such that ventilation alone cannot control the gas, methane drainage methods must be applied. In the 1970's, there was a concern that unprecedented gas emissions would be experienced as mine operators began new developments in the deep and gassy Blue Creek and Pocahontas No. 3 Coalbeds. Such concern was well founded as significant gas volumes are being emitted as these mining operations mature. In 1971, the O.S. Bureau of Mines began to tabulate and track the change in mine emissions. These data were extracted from the underground coal mine quarterly air quality-quantity inspections performed by the Mine Safety and Health Administration. At that time, approximately 6,560 Mm Id (231.7 MMcfd) of gas were emitted from 430 underground coal mines. It was determined however, that the mines emitting less than 2,832 m Id (100 Mcfd) contributed only 2.1 percent of the total daily gas flow. In 1988, underground coal mines emitted 8350 Mm Id (294.9 MMcfd) from 487 mines. This report evaluates the changing nature of U.S. mine gas emissions over the last 18 years.

Jan 1, 1993

By Byron R. Berger

Disseminated Au-As-Hg mineralization is localized along the Getchell Fault system at the Getchell Mine in north-central Nevada. Replacement ore bodies occur in Cambrian carbonaceous limestone and limy shale beds. Cretaceous granodiorite, dacite porphyry, and andesite porphyry dikes parallel the fault zone and are spatially associated with the mineralization. Hydrothermal alteration and mineralization occur continuously along 4-5 km of the fault system, and extend more than 1 km down-dip. Alteration consists primarily of removal of carbonate and deposition of quartz, pyrite, and carbonaceous material. Marcasite, sericite, kaolinite, calcite, barite, and fluorite are common. Gold content reaches more than 43 ppm in parts of the altered zones and averaged 9.3 ppm in the mined ore bodies. For the mineralized zones as a whole arsenic averages 0.28%, and occurs primarily as realgar, orpiment, and arsenopyrite. Mercury (22 ppm) is finely disseminated and mercury-bearing minerals are seldom recognizeable. Accessory mineralization includes antimony (100 ppm), copper (47 ppm) , lead (18 ppm) , molybdenum (10 ppm) , tungsten (16 ppm) , and zinc (50 ppm) . Geologic field studies and K-Ar dating suggest that the mineralization is related to a hydrothermal system produced by the granodiorite and related dikes.

Jan 1, 1975

By E. Watkins, S. J. Schatzel, V. Gangrade, K. M. Ajayi, Z. Khademian

Longwall-induced deformations could jeopardize the mechanical integrity of shale gas well casings positioned in the abutment pillar of a longwall mine. The in situ and induced fracture networks surrounding the gas well could provide pathways for gas flow into the mine creating safety concerns. Hence, this study by the National Institute for Occupational Safety and Health (NIOSH) develops a discrete fracture network (DFN) model to characterize the fractures in the overburden based on geomechanical analyses of mining-induced fracture apertures at a study site in southwestern Pennsylvania. The apertures from the geomechanical model are used to develop a stochastic DFN model of the site in fracture flow code (FFC). Multiple realizations of the stochastic DFN model that replicate potential fracture geometries are simulated, and the fracture permeability is compared with field measurements. A maximum field measurement of 5.03 × 10− 12 m2 (5080 mD) and 3.82 × 10− 13 m2 (386 mD) was estimated over the abutment pillar at the Sewickley and Uniontown horizon, respectively. The results show that the average permeabilities from the DFN model agree closely with the field measurements. In addition, the comparison of all the field measurements and 100 DFN realizations show the model is representative of field conditions. These findings provide critical information regarding fracture characteristics in the overburden, which will further be used to predict potential shale gas flow to the mine in the event of a casing breach for an unconventional gas well.

Jun 17, 2022

By D. L. Crouse

The worldwide talc industry has experienced significant changes since the 1980's. Consolidation of companies and operations in Europe, Australia, and North America has altered the face of supply and distribution. Imports of Chinese and Australian crude have increased competition and product options. The number of processing operations without local mines has moved competition closer to the market area. Quality controls related to ISO certification and tighter specifications demanded by the customers have altered the way our mines and mills operate. Ceramics, coatings, and paper applications continue to consume the majority of processed talc.

Jan 1, 1997

By David A. Zegeer

It's a pleasure to be here, and an honor to be invited to address this distinguished group of professionals. Today, I'd like to begin with an overview of progress in coal mine safety and health. I'll discuss some current areas of concern. And I'll make some suggestions as to where we may be headed in the future. This year marks the coal industry's 15th anniversary under the Coal Mine Safety and Health Act, which took effect in 1970. We have come a long way in those 15 years. As a coal mining man from way back, I remember the era when the Coal Mine Safety and Health Act first was passed. Some of you may remember it, too. At that time, the safety and health of coal miners was in the public eye even more than it is at present. One reason was a mine explosion that killed 78 miners when it occurred in a large underground coal mine in November 1968. That disaster raised tremendous public concern about protecting the safety of miners.

Jan 1, 1985

By Steve Trussell, William H. Langer

"Arizona aggregate (sand, gravel and crushed stone) producers enjoyed more than a half a century of nearly constant growth in demand for aggregates. Approximately 80 percent of the aggregate produced in Arizona is sand and gravel, and 20 percent is crushed stone (U.S. Geological Survey, 2015). Figure 1 shows the generalized distribution of potential sources of sand and gravel (yellow) and potential sources of crushed stone (other colors described below). Black dots show locations of aggregate operations.Sand and gravel commonly is produced from modern river channels and terraces although some alluvial fans and high-level paleo-river terraces also serve as aggregate resources. The gravel clasts are a mix of rock types that reflect the types of rock in the source area of the rivers. Generally processed river gravels meet stringent specifications for highend uses.Crushed stone, which makes up about 20 percent of production, primarily comes from a variety of metamorphic rocks and light-colored intrusive igneous rocks such as granite (brown areas), dark colored extrusive igneous rocks such as basalt and scoria (rust colored areas), and carbonate rocks such as limestone or dolostone (green areas). Carbonate rocks are also used in the manufacture of cement and lime.Construction and aggregate production in ArizonaBecause aggregate producers have limited facilities for storing product, stockpile changes are insignificant compared to production. Therefore, demand or consumption of aggregate in Arizona is considered to be equal to production. Production figures used in this paper reflect shipments, sales or marketable production, including aggregate used by producers to make readymix concrete and asphalt. Production figures were reported by the U.S. Bureau of Mines from 1950 until 1995 and by the U.S. Geological Survey (USGS) since then. Production figures are reported voluntarily, and major operators are the primary source for these figures. Because many smaller operators do not report their production, the figures are conservative values that provide an approximation of aggregates production activity."

Jan 1, 2015

By Andrew Chegwidden, Tara Wilk

Shaft 18B-1 is the second shaft to be constructed as a part of contract C547A along the New York City water supply system Tunnel No. 3. More complex than Shaft 17B-1, this site has an additional 30 m (100 ft) of overburden for a total excavation depth of approximately 78 m (256 ft) through water-bearing overburden soil and 145 m (475 feet) of gneiss bedrock to connect to the underlying Water Tunnel No. 3. round freeing was specied as the method to provide temporary earth support and ground water control for the overburden material. An extensive supplemental geotechnical investigation (SGI) and frozen soil testing program was performed to develop the design of a temporary ground freezing system, consisting of over 7,315 m (24,000 ft or 4.5 miles) of drilling for the installation of 95 freeze pipes. At the start of shaft excavation, the upper sandy silts strata was found to have an unprecedented low thermal conductivity, leaving the frozen soil face approximately 0.6 to 1 m (2–3 ft) behind the cutline. The ground freezing earth support needed to be augmented with ring beams and liner plates to support this soil face and allow for the excavation to proceed and be completed safely.

Jun 23, 2024

By Julian W. Feiss

Before undertaking to present to you a current analysis of copper, I would like to preface my remarks with a few observations that in themselves have a bearing upon commodity reviews in general. Having sat through a large number of such reviews since first joining the A. I. M. E. nearly forty years ago, I have no illusions about the hazards of the undertaking. If a speaker presents a statistical summary of commodity economics for the last year, most of his audience, having already read at least four commodity summaries on the identical subject, either get up and walk out or fall asleep. Should the latter happen, and were the listener to tumble from his chair and break his neck, obviously the speaker is liable. The subject matter seldom lends itself to histrionics on the part of the speaker so dangers of heart attack in the audience are not too great. Therefore the speaker, in order to retain listener interest, resorts to prophecy. Such venture was undertaken long ago by weather soothsayers, the "harouspex" of Ancient Rome, who generally cut up a sacrificial sheep and after staring at the entrails made their predictions which I understand had a batting average somewhat better than those undertaken on Wall Street based upon Dow Jones averages. Not being a licensed harouspex I cannot undertake predictions. I shall, however, fall back upon the experts.

Jan 1, 1965

By Leland L. Mink

Open-pit mining is sometimes conducted in areas where the artesian pressures contained in aquifers underlying the pit's floor are great enough to cause floor heave. In order to reduce this pressure several methods are commonly used. One of these methods is a pressure relief well or depressurization wick. The wick consists of a borehole which is filled with gravel and cased at the surface. The wick is allowed to flow freely, thus reducing pressure near its location. The spacing and depth of these wicks can be determined by a simple analytical and graphical technique which considers the weight of material overlying the aquifer and the artesian force within the aquifer. An example of the technique using data from a Colombian coal mine is presented.

Jan 1, 1986

By Jerry C. Tien

The rare earth elements (REEs) are a group of 17 chemical (metallic) elements which appear in the periodic table. The group consists of 15 lanthanide elements along with yttrium and scandium (Table 1). They share many similar properties, which is why they occur together in geological deposits. Although commonly referred to as rare, they are really quite common; the reason they are perceived as rare is because it is not common to find them in commercially viable concentrations. These metals are critical to advanced technology, ranging from smart phones to global positions system (GPS) receivers, medical devices and jet engines. They are critical in green, high-tech and defense industries (Fig.1 and 2). Although there have been increasing efforts to find alternative supplies, these efforts have been complicated by the pollution that rare earth mining and processing creates. To extract rare earths minerals from mined ore is a complicated and costly process. The ore is first mined through normal mining process, the bastnaesite, which generally contains a number of minerals of little value, is first removed through a floatation process. The bastnaesite containing the REEs is further separated into their respective pure forms in a separation plant using acid and various solvent extraction separation steps. Each element has its own unique extraction steps and chemical processes. At times, these elements, in the form of oxides, will require reprocessing to achieve ideal purity. The last steps would be to further process into metals first, then alloys for various applications. The entire process takes approximately 10 days. The mining and processing of REEs, if not carefully controlled, can create environmental hazards. This is one of the reasons the Mountain Pass Mine in California was closed down in the 1980s.

Dec 1, 2013

By Qinghua Tian, Zhipeng Xu, Dong Li, Xueyi Guo, Liu Zhu

Tellurium (Te) is an important scattered metal. Known as the vitamin of modern industry, national defense and cutting-edge technology, it is the supporting material for new high-technology materials. Currently, its separation and extraction from Te-bearing materials face problems such as long flowsheets and high reagent consumption, giving rise to an urgent need to develop new methods for its recovery.

By J. Helton, J. L. Bellanca, M. McNinch, L. R. Swanson

DISCLAIMER The findings and conclusions in this paper are those of the authors and do not necessarily represent the official position of the National Institute for Occupational Safety and Health, Centers for Disease Control and Prevention. Mention of company names or products does not constitute endorsement by NIOSH. ABSTRACT Accident data indicates that mobile haulage poses a significant pinning, crushing, and striking risk. Proximity detection systems (PDSs) have the potential to protect mineworkers from these risks. However, unintended consequences of mobile PDSs can undermine the safety benefit they provide. Soliciting iterative user input can improve the design process. Users help provide a critical understanding of how mobile PDSs may hinder normal operation and endanger mineworkers. Researchers explored users’ perspectives by conducting interviews with mineworkers from seven mines that have installed mobile PDSs on some of their haulage equipment. Mineworkers reported that mobile PDSs affect loading, tramming, section setup, maintenance, and general work on the section. Mineworkers discussed the operational effects and increased burden, exposure, and risk. Mineworkers also suggested that improved task compatibility, training, logistics, and PDS performance might help address some of these identified issues. This paper also gives additional insights into mobile PDS design and implementation. INTRODUCTION Pinning, crushing, and striking accidents are a large problem in underground coal mines, especially for mobile haulage. Between 1984 and 2014 there were 179 non-fatal and 42 fatal pinning, crushing, and striking accidents involving mobile haulage vehicles, including coal hauling machines and scoops [1]. Proximity detection systems (PDSs)—automated systems that decelerate and stop a vehicle in order to prevent a collision—have the potential to protect mineworkers in these situations. In fact, PDSs are now required on all place change continuous mining machines as of March 16, 2018, as a result of the final rule published in January 2015 (30 CFR 75.1732) [2]. To address mobile haulage, later in 2015 the Mine Safety and Health Administration (MSHA) also proposed a new rule that would require PDSs on mobile haulage vehicles [3]. Though there has been no additional actions related to the proposed rule and it is not currently required, mobile PDS can still help to save lives. MSHA estimates that the adoption of mobile PDSs could prevent approximately 70 injuries and 15 fatalities over the next 10 years [4]. As of June 2015, the underground coal industry had already equipped 155 of the 2,116 mobile haulage vehicles in use [1]. In order to capitalize on the projected safety gains afforded by PDSs, it is important that the systems are designed and implemented effectively. Along with others, researchers at the National Institute for Occupational Safety and Health (NIOSH) have been exploring PDSs for more than two decades [5-7]. Throughout this time, NIOSH has also held several stakeholder meetings (2010, 2014, 2016, and 2017) in order to disseminate information and provide an opportunity to discuss on ongoing issues and concerns. Despite some progress, human factors remain a key concern. Previous research examined mineworkers’ attitudes towards PDSs on continuous mining machines [8] as well as how continuous miner operators’ perceptions of risk have changed as a result of PDSs [7]. However, stakeholders have still expressed a need to better understand how mobile PDSs affect the mining process, the mineworker, and whether and how they may present previously unidentified risks.

Jan 1, 2019

By N. D. Cristescu

The aim of the present paper is to show how a mathematical modeling of a creeping rock and that of an yieldable lining can allow us to obtain an optimization of the lining design and generally of the whole procedure and sequence of excavation-lining application. We follow the procedure presented by Cristescu (1989) Chap. 13, and Cristescu et al.(1987); for some other approaches see the literature mentioned, for instance, by Ladanyi and Gill (1988). We have in mind to describe the creep of the rock, i.e. the tendency of the tunnel to close in time, and to take into account that the lining itself may be deforming, i.e. possesses some rheological behavior. We start from the well known fact that "intelligent" lining, which are yielding to the pressure of the rock, may be much more successful in supporting creeping rocks than excessively strong, badly designed supports which are unable to resist to pressure of the rock, though these are oversized supports (too strong, too stiff, installed too early, etc.). In order to optimize the lining to be used for a certain rock, it is absolutely necessary to study in the laboratory the main mechanical properties of that specific rock and to formulate for it a reasonably simple mathematical model. Standard triaxial test results are quite enough to determine the model for the rock, combined with some creep tests which have to reveal the long-term behavior of rock (the so-called rheological model). What concerns the lining, we consider several kinds of linings existing today, for which a mathematical model was also formulated. One shows which is the interaction between the creeping rock? and the yielding lining and how can it be formulated in mathematical terms. Once written in mathematical terms, an optimization of the lining design and that of the excavation layout and support application sequence is possible. We will try to make the exposure as simple as possible, avoiding details and having in mind to give only a sketch of the problem, while the mathematical details could be worked out quite easy.

Jan 1, 1994

The capability for on-line measurement of the quality characteristics of conveyed coal now enables mine operators to take advantage of the inherent heterogeneity of those streams and split them into wash and no-wash stocks. Relative to processing the entire stream, this reduces the amount of coal that must be washed at the mine and thereby reduces processing costs, recovery losses, and refuse generation levels. In this paper, new approaches for optimal control of the segregation process, using time series models and empirical distributions, are presented and demonstrated using field data.

Jan 1, 1998

By Norman E. Lehman

INTRODUCTION The Washington Camp - Duquesne mining district is located on the east flank of the Patagonia Mountains, 98 kilometers south of Tucson and within 5 kilometers of the International border (Figure 1). Since the development of high-grade silver and copper ores by settlers in 1862, the Washington Camp - Duquesne district has yielded an estimated 450,000 metric tons of ore. The mined ores averaged 8% zinc, 2% copper, 3% lead and 124 grams of silver. REGIONAL GEOLOGY The Patagonia batholith, of Laramide age, crops out in the core of the Patagonia Mountains intruding Precambrian granite, Paleozoic sediments and Mesozoic igneous, volcanic and clastic rocks. This granodioritic batholith lies in a northwest-trending zone of Laramide plutonic rocks, which can be traced for a distance of 320 kilometers from the Nacozari district in Sonora, Mexico to the Silver Bell Mountains west of Tucson, Arizona. Several major porphyry copper systems occur within this plutonic belt including the Red Mountain deposit found at the northern end of the Patagonia Mountains. Data from more than 80 mineral deposits within the Patagonia Mountains show metal zoning symmetrical to the Patagonia granodiorite (Graybeal, 1975). Disseminated copper-molybdenum deposits occur within the batholith. Pyrometa-somatic, limestone replacement and vein deposits of copper, lead, zinc and silver occur in the wallrocks adjacent to the. granodiorite and epithermal manganese-silver deposits occur at the outer periphery of economic mineralization. GEOLOGY OF THE WASHINGTON CAMP - DUQUESNE DISTRICT Stratigraphy Nearly 900 meters of miogeosynclinal Permian and Pennsylvanian sediments are exposed in the district (Figure 2). In addition, 700 meters of older Paleozoic rocks crop out 6 kilometers north of the district. The Paleozoic rocks occur in fault contact with a sequence of Triassic-Jurassic pyroclastic and flow rocks, ranging in composition from latite to rhyolite.

Jan 1, 1977

By R. P. King

The MODSIM mineral processing plant simulator is used to find optimal combinations of target separation specific gravities in a typical modem coal washing plant. A plant that is set up with these optimal targets can deliver up to 10% more yield at the same ash content as the same plant set up with separation targets chosen by conventional methods. MODSIM is the only simulator currently available that can simulate the liberation of pyrite and other mineral matter during open-and closed-circuit grinding operations. The simulator can therefore be used to assess the benefits of grinding operations in the flowsheet.

Jan 1, 1997

By Takayoshi Otsuka, Taher Elsamni, Ashraf Bou-Krisha, Takaya Takimoto

"INTRODUCTION Tunnel is a closed space structure and it is necessary to ensure the sufficient time and route for safe evacuation for the tunnel users in case of a tunnel fire. In order to do so, damages and collapse of the tunnel linings and the secondary disasters can be avoided. Furthermore, the road tunnel is one of important infrastructural facilities and stopping its function for a long time for a tunnel fire could cause a great economic loss. Therefore, the tunnel structure shall be the one which can be repaired as soon as possible, and the fire protection methods need to be selected among those which enable the service to start as early as possible. The necessity of the fire protection works is evaluated for the tunnel structure with the consideration of the expensive tunnel construction cost and the economic effects of the tunnel service. Naturally, the fire protection works, which can protect the tunnel linings from the tunnel fire with small repairs, are inevitable. Design engineers of the fire protection works estimate the scale of fire from the degree of damages on the linings and its repair cost, the effect of fire extinguishers placed inside of the tunnel, the secondary disasters in accordance with the tunnel lining damages if any, and the ratio of fire protection cost calculated from tunnel operation cost. Based on this information, the engineers design the fire protection works according to the permissible limits Among the design cases of the tunnel fire protection in Japan, as shown in Table 1, there is no cases that used the fire temperature-time curve to design the fire protection works for large fire caused by vehicles catching fire. However, the most of cases used 30-60 minutes for fire duration based on the entry prohibition of dangerous goods carrying vehicles or the effect of early fire fighting. This paper will study the variation between different methods used for fire protection in road tunnel in Japan to evaluate them and try to found some recommendations. Especial l care will be attention to Polypropylenes (PP) which is starting to be applied lately."

Jan 1, 2016

By Michael D. Loy

This paper examines the computerization steps of United Coal Company of Bristol, Virginia. OVERVIEW Producing close to 7,000,000 tons per year, United Coal Company is one of the most interesting mining companies in the east. Their approach to mining reflects a dedication to modern technologies and extraction methodologies. With varying amounts of production coming from four divisions (a fair amount of production comes from contract operators) and over a billion tons in recoverable reserves, United rests heavily on the planning and engineering efforts of a centralized engineering group. Although each division relies on its own engineering personnel for day-to-day management and operations, long range planning and reserve management is conducted at the corporate engineering level. This group, while extremely competent and efficient, is relatively small (7 people), when compared to the needs of a large mining company.

Jan 1, 1985

By J. W. Devon

The coal mining industry is divided into two distinct economic segments based on Coal Supply Agreements. Coal supply agreements generally fall into two categories, spot or long-term, with the selected contract term being driven by the buyer's market expectations, security of supply considerations, fuel tonnage and quality requirements, and economics. Short-term or spot coal purchases are generally market driven and are highly competitive in today's marketplace. Long-term contracts, particularly those involving captive mines and mine-mouth power plants, are commonly driven by considerations other than economics. These other considerations, such as Reserve Conservation and Resource Recovery, Security of Supply, and Maintenance of Levelized Costs may increase the cost of coal, often needlessly and without benefit to the buyer or seller. The basic economic principles which guide the market driven metals industry and generally guide the spot coal sector of the coal industry should apply equally well to the long-term coal supply contract. The artificial constraints imposed as a result of regulated rates of return should be re-examined and in most cases, abandoned. There are many methods of surface and underground coal mining being used today such as, open-pit, contour, mountaintop, and area mining for surface mineable reserves; conventional, standard continuous and super-section continuous miners, and longwalls for deep reserves; and highwall miners, thin seam miners and augers in between. This discussion is primarily directed to surface mining, however the same principles of least cost mining on a Net Present Value basis must be considered in all cases.

Jan 1, 1994