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By M. J. Ramos

Without an exclusive definition of administration in business, we could propose to define it as performance by management to adopt or implement established business formulas. Administration could also be defined as a universal process that organizes people, and achieves, through efficiency, common objectives and goals. Humanity developed some form of this process from the beginning of civilization. To imply that something is new in administration might be considered specious or naïve. Moreover, what is new in management? Administration of business is not new to the world. To prove this statement, we need only ask this question: Does the architecture and monumental workmanship of the past civilizations of ancient Egypt, Rome, and the Incas demonstrate management without administration and without definition of objectives? The answer must be a resounding ?NO!? In spite of this acknowledgment and for the purposes of this presentation, I will use the word ?new? in business and hope that the reader will follow my reasoning. The mining industry has unique characteristics in respect to other industries. It is multi-disciplinary, has a single purpose (majority for one metal), has two players (man and nature), and it involves high risks for generating environmental imbalance. Mining exploits non-renewable and finite resources, creates an unstable job market (work hard to have no work) and a speculative economic market with unpredictable prices ? a one-time payment for a finite resource with multiple recycling. On top of all that, the industry still operates within obsolete petroleum-based technology, utilizing practices that were designed two centuries ago. Today, we confront the challenges of the millennium with outmoded practices and management. Ordinarily, several styles of administration are standardized into a FRAGMENTED vertical system of organization. Mining has rigid objectives in production, with profitability as the focus from the beginning to the end. Citing the concept of safety, as an important facet of production is bombastic since, in truth, mining is an experimental industry that consistently reports high numbers of fatal accidents. In mining, we designed a process to work according to our objectives, demanding attention and supervision of all levels of management with a halo of parameters that are not assimilated into the design. We continue to perform a rigid style of management in an industry that is still not responsive to variations of the market ? losses in particular. The existing design process generates loss without capitalization and without response to said loss. This perception is reflected in a mindset that is only too ready to ignore mining liabilities. The reality of the enterprise has created an immense pressure from top to bottom in the hierarchy to do more with less. It is for all of these reasons that I propose to set forth a new essence for administration that encompasses an alternative vision and style in mining: Management by Loss. MANAGEMENT BY LOSS Management by Loss (MBL) is a systematic, integral process organized to quality control operation and the human profitability within the industry. It permits focus on achievable goals by utilizing the best practices (Mining Open-closing). Identification and characterization of loss in the process determine how objectives are defined, controlling the time limits to execute based on constant balance of mass, energy, water, and ?wastes? in each stage of the industry, in order to reach final objectives. The concept of loss can be defined by various criteria. Generally, it is the mass that could not make or arrive at its destination from a designed process or simply, it could not maintain balance. Otherwise, the design of the process describes the final point of the resource. However, those resources could not make their destination because of failure to use the best design, resources and TIME. The loss has typical characteristics such as Identifiable, classifiable, measurable, manageable, controllable, valuables, negotiable, avoidable, reportable, and monitoring. In the traditional scheme, these losses are not registered; they are made exclusions. We are trapped within a system, which was designed to obtain objectives of the industry in a specific timeframe. In the present style of administration, the focus is total - our emphasis in this treatise is in the loss. The current traditional report form contains only the most positive achievement of objectives, only the best of the exercise, humanizing numbers, without touching what we left behind or what we were waiting for to assimilate as a ?surprise account?(new account of liabilities). Management by loss is a method that redefines the concept of waste (waste zero) for controlling the mine operation under the equilibrium of the ecosystems. This method confronts the problems that impact our industry in this millennium. Understanding and quantifying losses (reserves, resources, time, energy, water, soil, materials, equipment, tasks, labor, ecosystems, etc) is a priority mandate for the industry and demands the application of a ?new ? style of administration by seeking to maintain balance instead of the disequilibrium that mining now creates in nature. It is necessary to answer questions such as: How can we minimize loss? How can the loss be assimilated during the life of the mine? What is the vision of mining in respect to the generation of waste? How can we convert liabilities into assets? In addition, the control of loss is determined in the achievement of the plan. Loss occurs because of a failure of the process in the original plan. Still we do not plan to fail but we fail to plan appropriately. It is a remarkable thing to accomplish and compel those objectives described in the original plan when that plan is designed with a determined budget. If not, we lose time and, of course, capital. Moreover, in Management by Loss (MBL), we can find answers to the following questions: What is the multiplier of productivity in mining? What are the influences of identification and characterization of loss and what is the level of efficiency of energy in order to achieve waste zero (effective cut off grade)? The challenges of mining in this millennium validate this new style of administration. Finally, it is important to point out that mining is entering into an era that has different rules, but the industry is still run by companies functioning with objectives from two centuries ago. They are trying to confront issues with concepts that are not designed for new tasks. Therefore, I ask you to consider this new style of administration of business under a vision of how the industry should be organized and managed, with an attitude of balance toward nature and social responsibility.

Jan 1, 2009

By T. H. Eyde

Worldwide production of natural zeolites during 2001 was estimated to be about 3.5 Mt (3.85million st). Construction and agriculture continued to be the major consumers. Estimated production in North America during 2001, including the United States, Canada and Mexico, was about 40 kt (44,000 st). In the United States and Canada, the zeolitic tuffs are ground, extruded or modified for use as adsorbents, desiccants, ion-exchange media and carriers. In Mexico and the rest of the world, the zeolitic tuffs are cut into dimension stone that is used in construction. Zeolitic tuffs are usually composed of the minerals clinoptilolite, mordenite or both. They occur in a variety of colors and are easy to cut and shape. And they have low thermal conductivity. This construction application is classified with dimension stone rather than with chemical and agricultural uses.

Jan 1, 2002

By C. H. Bucknam

Principles of Green Chemistry provide useful guidance for sustainable mineral process development. Laboratory bench scale testing was carried out using pregnant cyanide leach solutions, and a number of commercially available mercury precipitation reagents were compared using jar testing to determine the most efficient and selective reagents for mercury precipitation. The most efficient reagent identified was sodium polymeric thiocarbonate (NaPTC).Coagulation experiments with fine diatomaceous earth resulted in a stable precipitate, with good settling properties. On line monitoring of the mercury in solution is recommended for process implementation to conserve reagent removing approximately 90-95% of the mercury with minimal silver and negligible gold losses.

Jan 1, 2004

By E. Shelobolina, S. M. Pickering, J. E. Kogel

A long history of weathering and bacterial alteration processes have transformed Georgia’s Coastal Plain kaolins from dark organic muds to recrystallized white pigment-grade industrial clays. A sequence of six stages in development of these valuable mineral deposits is outlined over their Late Cretaceous and Tertiary deposition and alteration history. Anaerobic and aerobic iron oxidizing and iron-reducing bacteria are present in the Georgia kaolins. These bacteria may have had a major role in iron and organic matter removal during several of the alteration stages that occurred over the past 60+ million years. Iron was likely solubilized by both iron-reducing and iron-oxidizing bacteria, depending on availability of Fe(II), Fe(III), and NO3. Thus, over long periods bacterial activity slowly led to nearly complete groundwater removal of iron from the kaolin deposits. Further bacterial iron removal on an industrial process scale may eventually prove feasible. “Without the multitude of living reactions as channels for energy and electrons and without the enormous capability of life to transfer with and against chemical gradients, there would be practically no or at least a very reduced geochemical rock cycle on this planet.” (Krumbein and Dyer, 1985, p. 157)

Jan 1, 2002

By B. J. Vorster

Introduction The South African Iron and Steel Co. Ltd., in Sishen, operates a large iron ore mine in the Cape Province of the Republic of South Africa. The mine is about 600 km (370 miles) west of Johannesburg. Its annual capacity is 100 Mt (110 million st) of ore and waste. Present production is 60 Mt/a (66 million stpy). The mine operates continuously six days a week. Primary equipment includes 55 154 t (170 st) Wabco and Unit Rig trucks and 14 P&H shovels. During 1979, a feasibility study into the application of a trolley assist system was launched. This was due to the escalation in diesel fuel costs and the appeal by the South African government to reduce the use of fossil fuels. Tests and economic evaluations proved the system technically feasible. The estimated discounted cash flow return exceeded 50%. Diesel fuel consumption would be reduced by 120 ML (31.7 million gal) in the next 10 years. The construction of 7.7 km (4.8 miles) of line and the conversion of 66 154 t (170 st) trucks were completed in March 1982. System description The conventional 154 t (170 st) diesel electric rear-dump haul-truck is equipped with two direct current wheelmotors in the rear axle. They drive the rear wheels through planetary gearboxes. A 1.2-MV (1600-hp) diesel engine and an alternator is used to power the wheelmotors. The trolley assist system consists of an overhead power line, a current collector mounted on the truck, and add-on control equipment where external electric power is routed by way of the current collector to the motorized wheels. The diesel engine is used to propel the truck on level sections. On inclines, the wheel-motors of the truck are coupled by way of a current collector to the externally generated electrical power supply for propulsion. The diesel engine, having lower output than the wheelmotors, limits the truck performance. Previously, maximum output was required from an engine on inclines. By supplying the wheelmotors from a virtually unlimited outside electric energy source, the truck performance is enhanced to the extent that speed is increased by 46% and fuel consumption reduced by 75%. System design The unique operational requirements of this mine rendered the already proven trolley pole system useless. Minimum loss in truck mobility and flexibility was required. Overhead lines and substations were required to be relatively light and portable. This enables fast repositioning of a line with no loss in material. These unique specifications set the base for the design of the Sishen system. Steel I-beams, 203 x 203 mm x 52 kg/m (8 x 8 in. x 35 lb per ft) with lengths varying from 8.3 to 11.3 m (27 to 37 ft), mounted on base plates about 4 x 2.6 m (13 x 8.6 ft) were used as masts. The masts were erected at about 50 m (165 ft) and the base plates covered with about 12 t (13 st) of iron ore to keep them absolutely stable. Results from the pilot installations indicated that using single cantilever cross arms for insulator and overhead conductor suspension was not practical. The tension in the overhead varied too much with temperature changes, causing too much sag in the lines. There had to be a positive and negative conductor. It was decided to suspend each polarity on an independent cantilever and keep the conductors under constant tension by weights acting through a two-to-one pulley tensioning arrangement. For each overhead conductor, a standard 160-mm (6.5-sq in.) grooved copper railway conductor was used. To obtain the necessary current carrying capacity, two of these conductors are used in parallel per pole. Insulators are rated at 4 kV and are of the composite type. An 11-kV three-phase line, supported by the pantograph line masts on the opposite side of the dc line, feeds the rectifier stations. The rectifier stations consist of an 11-kV to 860-V, three-phase 1.46 MVA transformer and a three-phase diode bridge rectifier. The output voltage is 1200 V do earthed through a current limiting resistance network so that the line po-

Jan 4, 1986

By understanding the ore breakage characteristics and utilising comminution circuit modelling, the benefits of SAG mill feed size manipulation can be readily assessed. This paper looks at the benefits and problems of total secondary crushing of mill feed and advocates partial secondary crushing as a means of improving grinding efficiency for certain hard ores. Case studies are reviewed for new and existing SAG mill circuits.

Jan 1, 2007

By T. R. Ellis

The vast majority of valuations produced for mineral properties using the net present value method provide an estimate of Investment Value or Use Value. Such an estimate can be a long way from the price that the property would sell at if placed on the market. Indicators from the market need to be used to validate or modify the net present value calculation. The comparable sales and replacement cost approaches used in the appraisal of urban buildings generally fail us in the appraisal of mineral properties. Other methods of sales analysis are introduced. Guidelines for what a minerals appraisal report should contain are presented.

Jan 1, 2000

By W. X. Wang

In the mining and quarry industries, rock fragments are often transported by conveyor belt. To estimate the qualities of the rock fragments (i.e., size distribution and shape), an operator must take samples from the conveyor and manually perform a sieve analysis, which is time-consuming and tedious. Alternatively, an image-analysis system can be used to monitor the fragment quality on a fast moving conveyor belt. However, images of fragments on a fast moving belt vary to such a degree that the quality of any two successive images are not the same, and some of the images are of such poor quality that they are unrecognizable by human eyes. If poor-quality images are directly analyzed by a segmentation algorithm, the analysis will not be satisfactory. To resolve this problem, it is necessary to use an image-classification pro-gram for the automatic selection of fragment images with good quality. Because of this need, an image-classification program was developed and tested both in the laboratory and in the field. Testing of the system on different types of fragments showed that the system works reasonably well.

Jan 1, 1996

By Ronald R. Rose

Currently six economic heavy mineral deposits are known on the Penholoway Terrace. These are (from south to north) the Green Cove Springs Mine (GCS), Boulogne Mine, Folkston Mine, Mission, Lulaton, and Ludowici. The GCS deposit is located to the west of Highway 17 between the towns of Green Cove Springs and Palatka in the state of Florida and has been mined since 1972. To the north, the erosion created by Black Creek restricts the northern extension of the orebodies and to the south a karst depression and erosion by the St. Johns River restrict southern extensions. The deposit is 20 miles long and up to 4.5 miles wide. Deposit thickness is from 5 feet up to 45 feet. The deposit is a series of regressive barrier island sequences deposited during the Pleistocene along the ancient Penholoway and Wicomico shorelines. The initial transgression of the ocean up to the location of the western Henry orebody was an extensive sea-level still stand as evidenced by the unit thickness and stacked transgressive regressive sequences. This period was followed by sporadic regressing seas and still stands, progressing eastward and stranding the sand bodies which make up the East Extended, TE, and East TE Ridge orebodies. The orebodies are underlain by predominantly non-mineralized fluvial sands and occasional back barrier lagoonal deposited clays. There is a predominance of wetlands on the southern extents of the zone as the surface elevations decrease due to a large karst depression.

Jan 1, 2005

By Richard P. Graff

Author?s note: Diversity in practice exists in the application of Generally Accepted Accounting Principles (GAAP) for purchase price allocations with respect to the recognition of Value Beyond Proven and Probable Reserves or VBPP, as defined by the Emerging Issues Task Force (EITF) in EITF 04-3: ?Mining Assets: Impairment and Business Combinations?. This diversity appears to arise from differing interpretations of what constitutes sufficient information to value components of VBPP in business combinations. Concerned with this diversity in practice, respected members of the mining community formed a working group which prepared an issues paper that discussed this diversity and provided recommendations for recognition and valuation of VBPP in business combinations. The working group then submitted this paper to the EITF, requesting further guidance be issued on the concept of VBPP. In conjunction with the submission to the EITF, the working group also provided this paper to the United States Securities and Exchange Commission (SEC) for review and comment. The EITF discussed this issue at its May, 2008 agenda committee meeting. However, it declined to add this topic to the EITF agenda for further consideration. Absent additional guidance on VBPP from the EITF, the working group submitted a proposed definition of VBPP to the U.S. Securities and Exchange Commission for its consideration. The following article, which is consistent with the issues paper that was submitted to the EITF and the SEC, discusses the components of and valuation techniques for VBPP. The correspondence with the U.S. Securities and Exchange Commission, which includes the proposed definition of VBPP by the working group, is attached as Appendix 1 to this article.

Jan 1, 2008

By Norbert T. Rogers

An accepted statement of fact is that, next to agriculture, transportation is the second most important industry in the world. The transportation networks of the United States have greatly contributed to our nation's growth and prosperity. The objective here is to make the reader aware of the need for communication between geologists, mining engineers, purchasing agents, and transportation managers. Only through a cooperative effort is it possible to reap the benefits of transportation in the industrial minerals field. Transportation is often thought of in terms of trucks, rail cars, barges, and covered wagons. There is much more. Corning Inc. Corning Glass Works is a worldwide organization with more than $2 billion in annual sales. It supplies more than 60,000 different products a year to some 47,000 customer firms and millions of individual consumers. Corning operates 32 of its own plants worldwide and is also an investor with a 50-50 or minority position in 24 affiliated companies in 11 countries. Corning competes in four broad business categories: • specialty glass and ceramics; • consumer housewares; • laboratory sciences; and • telecommunications Binding these four sectors together is the glue of technology. Coming's research laboratory, established in 1908, was one of the first in American industry. That early commitment to research has never wavered. Today, Corning spends annually on research and devel¬opment, as a percentage of sales, at double the average rate for all manufacturing industry in the US. Some 1500 scientists, engineers, and support personnel are now employed at the company's research and development centers in the US, Japan, and France. Petalite background A family of materials melted conventionally as a glass, then converted by special processing to a ceramic was invented in 1957. One of the basic minerals in this glass ceramic product is petalite. Petalite is a monoclinic mineral with a framework silicate structure and a low iron content, about 0.06% Fe2O3. Petalite is found in very few places throughout the world and no commercial petalite deposit has been found in the United States. Sizable deposits occur in Zimbabwe, Southwest Africa, Brazil, Australia, the Soviet Union, and Sweden. Coming's purchasing and geology departments located a source of petalite with proven reserves in what was then known as Rhodesia. The supplier was Bikita Minerals. The relationship with Bikita was one in which Bikita supplied bulk ore that Corning processed into a finished material at its US facility. This bulk ore method of shipment resulted in high losses through contamination and processing. It also caused tank upsets at the Corning plant because of iron contamination picked up through the numerous handlings of this product in bulk. The relationship with Bikita continued until 1965 when the white political leadership of Rhodesia declared its independence from Great Britain. This led to the imposition of international sanctions. The sanctions were lifted in 1980 and the relationship with Bikita was reestablished in 1983.

Jan 1, 1989

By J. W. Hawkins, K. B. C. Brady, M. W. Smith

The Pennsylvania Department of Environmental Protection (PaDEP) has been issuing surface mining permits since 1984 that authorize remining in areas that will affect preexisting pollutional discharges. These permits require the mine operator to employ best management practices to reduce pollution loading from abandoned mine discharges. A total of 110 completed mining operations with 233 discharges were evaluated to determine the impact to water quality. Overall, acid loading from these discharges was reduced by 7,200 kg (15,900 lbs) per day or 61%. Metals loadings were also reduced. For acidity, 49% of discharges improved or were eliminated, 52% showed no significant change, and fewer than 1% got worse. Loading reductions resulted from a combination of reduced concentrations and lower flows.

Jan 1, 2002

By Peter A. Anderson

Innovative solution management is being used at Coeur-Rochester Inc. to increase bullion production and decrease overall costs. New operating programs call for reduced solution application rates to the heap that increase pregnant stream values at a lower and less costly plant flow rate. Silver and gold extractions are equal regardless of leach solution application rate. Solar heating is used in the summer months to increase the core temperature of the heap for use in the winter months to enhance the silver extraction rate. The Coeur-Rochester silver and gold mine, located in central Nevada, is an open pit, heap leach operation that has been in production since late summer of 1986. The facility produces about 15.4 kt/d (17,000 stpd) of -13 mm (-0.5 in.) ore to a leach area consisting of more than 37 hm2 (4 million sq ft) of 80 ml HDPE liner. Crushing is accomplished with a 1220x 1520-mm (48- x 60-in.) jaw crusher. This is followed by a single 2.1-m (7-ft) standard cone crusher and is completed with four 2.1 m (7 ft) short-head cone crushers. Agglomeration is not required for the crushed ore, which contains less than 10% -75. µm (-200 mesh) material. The ore contains 53 g/t (1. 55 oz per st) silver and 0.377 g/t (0.011 oz per st) gold. It is end dumped over previously leached material, leveled, and then ripped with a bulldozer. Drip emitters at 810 mm (32 in.) spacings on 910 mm (36 in.) centers are used to apply barren solution to the heap. A portion of the emitter lines are buried I m (3 ft) deep during the winter months and are placed on the surface the remainder of the year. The leach solution contains 0.75 g/L (750 ppm) sodium cyanide solution at a pH of 10.5 - 11. Dissolved oxygen averages 8 ppm in the pregnant solution. Cyanide consumption for the ore to date is just under 0.2 kg/t (0.4 lb per st). The pH control is accomplished by adding I kg/t (2.0 lb per st) 0-10 mm (-0.4 in.) pebble lime to the ore at the tertiary crusher. The pregnant solution is processed by a conventional closed circuit Merrill-Crowe system. The pregnant solution is clarified through three 158 L/sec (2500 gpm) US Filter Auto-jet clarifiers. This is followed by deareation through a

Jan 1, 1989

By F. B. Henderson

1.0 PROLOG Since the "end" of the Cold War, revolutionary new research and commercial remote sensing capabilities are being developed that will dramatically change the way we map the earth and address its environmental problems. The technology challenge is not the growth of new environmental remote sensing technologies themselves. It is, rather, how these new innovative observing systems can be accepted and used to the benefit of both the regulatory and the mining communities in the light of present concerns about unknown risks of discovery and liability. The basis for this paper is an unpublished technology primer prepared for the industry-government Workshop on Advanced Measurement and Site Characterization for Mining Impacts held at Colorado School of Mines, Golden, Colorado, July 14-17, 1997

Jan 1, 1999

By Tim O’Neil

ISO 9000 is a system of quality standards that originated in Europe in the 1980s and has since been widely adopted by manufacturing companies throughout the world. The ISO 9000 standards have received less attention in the minerals industry. But, in part as a result of customer pressure, a trend is beginning to emerge for minerals producers to seek ISO certification. This is especially true among producers of industrial minerals. In early October 1994, SME's Industrial Minerals Division held a conference "ISO 9000 - uniting industrial mineral producers and consumers into quality partnerships," in Nashville, TN to bring people from the industry together to talk about their experiences with ISO 9000. William J. Miles, of Bentonite Corp. Inc., and A. Frank Alsobrook, of Alsobrook and Co., were cochairmen of the meeting. In his introductory remarks, Miles noted, "ISO 9000 is more than a quality program. It is a quality philosophy. Appropriately imple-mented, it is a contract between the supplier and the customer. It leads to continuous quality improvement and reduced manufacturing costs."

Jan 1, 1995

By R. P. Killmeyer, W. W. Wen, B. K. Parekh

A continuous pilot-scale test of the GranuFlow Process was conducted using a screen-bowl centrifuge for the dewatering and reconstitution of column -flotation concentrate at a coal preparation plant in Virginia. In this test, a slipstream of the fine clean-coal slurry from the column flotation con¬centrate was treated with a bitumen emulsion before dewatering. The treated products from the screen-bowl centrifuge appeared to be dry and in a free flowing granularform, while the untreated products were wet, sticky and difficult to handle. Test results indicated that the average moisture contents of the dewatered coal products were 35.7%, 35.5%, 32.6%, 29.9% and 26.5% (by weight) with Orimulsion additions of 0.0%, 0.7%, 3.2%, 4.8% and 6.4% (by weight), respectively. The handleability and dust reduction of the dewatered coal products were also vastly improved.

Jan 1, 2000

By Ü. Atalay, G. Alaeddinoglu, G. Özcengiz, G. Özbayoglu, Z. Özdemir

In this study, bacterial pre-treatment was applied before cyanidation in order to enhance the solubilization of silver from Artvin-Kafkasör ore Direct cyanidation process was found inefficient to recover silver from the ore. Only 40.36% silver recovery was obtained with direct cyanidation while silver recoveries of above 60% were obtained after bacterial treatment. Thiobacillus ferrooxidans was used as the microorganism in pretreatment tests. Effects of various parameters such as pulp density, duration, inoculum size and particle size on silver recovery have been investigated in this study.

Jan 1, 2001

By M. Wiber, P. Nicoll

Rio Algom has embarked on a major programme of expansion with the goal of becoming one of the world’s top-performing base-metal mining and metals distribution companies. To assist the company and its operations in achieving its business objectives, we are implementing an environment, health and safety (EHS) management system, built to be compatible with the 14001 model. We recognize that a sustainable development approach for Rio Algom includes outstanding performance in EHS and community responsibility and is essential to earn acceptance within the communities where we operate or wish to locate; raise capital; obtain permits, and operate efficiently. We are committed to triple bottom line accountability, i.e. full consideration of environmental, social and economic concerns in our business decision making.

Jan 1, 2000

By Allen W. Hatheway, John A. Albritton, Lloyd B. Underwood

Missouri River Division (FORD), U.S. Army Corps of Engineers (COE), has completed (October 1982) a study for the U.S. Air Force Ballistic Missile Office, in which desireable and needed changes in contracting methods for underground construction were identified. Due to the importance of geotechnical considerations in such construction, a good number of the resulting recommendations relate to geotechnical considerations. Corps contracts have traditionally served as models for contract documentation by public agencies and in private enterprise. Several standard features of present-day contracting methods were Corps innovations. Corps officials are generally in agreement with the recommendations of the Better Contracting reports published by the U.S. National Research Council (NAS/NRC), through its U.S. National Committee on Tunneling Technology (USNCTT). However, the findings of the 1982 MRD study indicate that additional changes are warranted for underground construction contracting methods; changes that deal specifically with site geological conditions, both known and to be reasonably anticipated, as well as with their associated impacts on construction. The 1982 MRD report identifies the need for nine specific improvements in geotechnical aspects of contracting; improvements based on recognition of geological conditions.

Jan 1, 1983

By Earl Rau

Introduction Will cogeneration be a major power source in the future? The location of electric power generating plants has changed. In 1900, more than 50% of electricity was generated by industrial plants. Since then, industrial plant generation of electricity greatly decreased to 17% in 1950 and to only 3% in 1980. Changing economics in electric power generating costs, though, may allow cogeneration to reverse this trend. Cogeneration has been defined as the simultaneous production of electric (mechanical) and thermal energy from a single energy source. Some applications are considered to be byproduct generation of electricity from industrial, thermal operations. Cogeneration is not new to the mining and minerals industry. Smelters and steel mills have used waste heat to generate electricity. Public Utilities Regulatory Policies Act of 1978 The potential for increased industrial cogeneration of electricity is related to the March 9, 1978 enactment of the Public Utility Regulatory Policies Act (PURPA). The US Supreme Court ruled that PURPA is constitutional. The court upheld requirements that utilities interconnect to cogenerators. It also ruled that 100% of avoided costs be used as the guideline for electricity sales by a qualifying facility (QF) to a utility. The state of New York established a floor price $0.06/kWh for electricity sales from a QF to a utility. It is obvious, then, that a cogenerator must first establish price and then become a qualifying facility in order to sell electricity to a utility. Proposed cogeneration plants The estimated industrial cogeneration potential for the years 1986 to 2000 is 9500 to 25,000 MW. Industries represented in this cogeneration estimate are pulp and paper, petroleum, chemicals, food, textiles, rubber, plastics, steel, lumber and wood, cement, glass, metal fabrication, and industrial parks. A cogeneration plant has been proposed for the Union Carbide chemical plant in Institute, WV. A steam turbine/generator would be installed to replace the pressure-reducing valve in the 2.7 MPa (400 psig) header. Scott Paper Co., Mobile, AL, proposed a cogeneration plant using a coal- and wood-fired boiler and a turbine/generator to produce process steam and electric power. A cogeneration system has been proposed for a large oil refining plant. A pulverized coal boiler would produce high-pressure steam to operate a turbine, generator. The exhaust steam from the turbine will go to the process and an existing turbine. Kansas City, MO's Armour meat-processing plant has proposed a cogeneration plant. This proposal is to use a natural gas or oil-fired, gas-driven turbine and a generator. The waste heat from the gas turbine would go to a heat recovery boiler for use as process heat. Dade County, FL is implementing a central energy system to supply electricity, air conditioning, and domestic hot water for five buildings in downtown Miami. The cogeneration system is to provide flexibility, to optimize fuel use efficiency while serving the variable thermal demands. Generation of electricity from municipal waste is not considered to be a cogeneration process but is covered by PURPA. Special considerations are provided for waste/electric power generation to encourage the development of these systems. ?

Jan 7, 1987