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By R Razanatsimba, A Galli

A mining company has entered into contractual commitments to supply certain quantities of its product to clients in each time period. Failure to fulfil its obligations would damage its reputation as a reliable supplier. The planned production would normally be sufficient unless major problems such as highwall failures, roof falls, natural disaster, or strikes that interrupt production or delays in obtaining environmental permits, occur. To overcome these difficulties, the company may be able to obtain more of the commodity: from its strategic stockpile (if there is sufficient there); by buying it on the spot market; or for some commodities such as gold and uranium, by leasing it. Two sources of uncertainty, the spot price of the commodity and the occurrence of serious incidents that interrupt production, are considered. For simplicity it is assumed that the commodity price follows a geometric Brownian motion, that productions incidents have a binomial distribution, that they are independent from one time period to another and that they do not affect prices. A branching tree structure is used to model the joint evolution of prices and production incidents. The aim of this research project was to evaluate the companyÆs options for fulfilling its contractual commitments. When evaluating these options, multi-stage stochastic programming with recourse was used to solve this problem because in addition to providing the dollar value of the project, it gives decision-makers the æroadmapÆ to reach the optimal value. That is, how much material should be bought/sold on the spot market, how much to add to/subtract from the stockpile, how much to lease and in the worst case what the shortfall would be, for each time period as a function of the current spot price and breakdown status. A case-study over a five-year period is used to illustrate the proposed procedure. In this study the production would be sufficient to cover the companyÆs contractual commitments unless production incidents occur. Focus is on evaluating the impact of the quantity initially in the stockpile on the value of the project when the commodity market is tight, that is, when only small quantities can be bought on the spot market or by leasing.

Sep 26, 2011

By Charles A. Steen

Publication of this information circular results from an invitation extended to the Bureau of Mines by the Utex Exploration Co. to visit the company mine, on the Mi Vida claim about 39 miles southeast of Moab, in the Big Indian mining district, San Juan County, Utah. The Bureau is pleased to present this record of the Utex mine -- a property that in the relatively short period of 4 months has become one of the major uranium-ore producers on the Colorado Plateau. The ore deposit was discovered in July 1952 by Charles A. Steen, a geologist-prospector, now chief geologist of the Utex Exploration Co., in tae course of drilling the first diamond-core borehole in the Big Indian district. High-grade ore, 14 feet thick, was penetrated by the borehole. Sinking of a shaft, from which to develop the ore body, was begun in October, and the first shipment of ore left the property December 6, 1952. Ore production, as recorded on ore-settlement sheets received by the company up to July 15, 1953, totaled 16,000 tons averaging, 0.51 percent U305 and 1.25 percent V205. Discovery of the ore body and the large production of ore were achieved without any financial assistance from the Government.

Jan 1, 1953

By Henry R. Linden

The demand for natural gas continues to increase at higher than anticipated rates, partly because of its widening price advantage over most other fossil fuels when the cost of air-pollution control is included. However, there are clear indications that the natural gas supply from the conliguous 48 states and continental shelves will not keep up with this rapid growth in demand indefinitely. Projections are presented which define the extent of potential deficiencies from the 1970's to the year 2000. Among the sources of supplemental gas - imported pipeline natural gas from Canada and Mexico, tanker import of liquefied natural gas, and synthetic pipeline gas from coal and oil shale -by far the most abundant at potentially competitive costs is pipeline gas from coal. The state of development and relative economics of the various coal gasification processes are reviewed. It is shown that synthetic pipeline gas could become a very substantial market for bituminous coal and lignite at current mine-mouth prices - 60-70 million tons of coal for each trillion cubic feet of synthetic pipeline gas produced. This corresponds to only slightly more than the current annual increase in gas demand. Although annual discoveries (gross additions to proved reserves) of natural gas in the United States are still on a general upward trend from the current level of 22 trillion cu ft annually, most forecasters do not expect this to increase substantially in the foreseeable future. For example, the updated (to include 1966 and 1967 data) mathematical model of natural gas discovery and production in the U.S. developed by the Institute of Gas Technology (IGT)' projects that discoveries will level out at about 25 trillion cu ft annually in the late 1970's and during the 1980's and then decline to about 21 trillion cu ft by the year 2000 (Fig. 1). This adds up to a new supply for the period 1968-2000 of about 790 trillion cu ft. Experts who usually reflect the producers' viewpoint, such as Radford L. Schantz of Foster Associates,* are relatively more pessimistic. In contrast, a forecast just made by the U.S. Dept. of the Interior is much more optimistic.3 It assumes an increase in gas discoveries of 2.2% per year over the period 1965-80, reaching about 30 trillion cu ft in 1980. If this rate of increase were extended to the year 2000, annual discoveries would reach 46 trillion cu ft at that time, for a total over the period 1968-2000 of about 1100 trillion cu ft. To these forecasts of new gas discoveries must be added proved reserves of roughly 290 trillion cu ft,4 bringing total U.S. supplies for the rest of the century to nearly 1100 trillion cu ft (IGT) and possibly as high as 1400 trillion cu ft (U.S. Dept. of the Interior). This is approximately the same range as that of two estimates of total remaining recoverable natural gas supply: Potential Gas Committee, 980 trillion cu ft5 and IGT, 1450 trillion cu ft.6 Only the 1965 estimate by the U.S. Geological Survey7 suggests that economically recoverable natural gas supplies will not be exhausted around the end of the century. These forecasts are, naturally, based on the assumption that changes in technological, economic, and regulatory environment as they affect the gas industry will be of an evolutionary, not revolutionary, nature. The various forecasts of potential natural gas supply must now be compared to forecasts of natural gas demand (Table I). The general consensus is that the recent Future Requirements Committee projection to 1990' (extended to the year 2000 by the most recent U.S. Bureau of Mines (USBM) projection9) represents the minimum gas requirements (Table 11). They add up to a total of 1030 trillion cu ft for the period 1968-2000. Even this minimum anticipated gas demand exceeds the total remaining supply estimate by the Potential Gas Committee and would nearly exhaust the proved reserves plus new discoveries projected by IGT. The supply situation would appear much tighter if the demand projections of the Texas Eastern Transmission Gorp.10 and the American Gas Assn.(A.GA.)'' were used (Table I). Yet, these higher forecasts probably do not include the effects of such new markets as gas fuel cells, use of liquefied natural gas as a transport fuel, etc. They also may not fully reflect the impact of air quality control on the fuel market. Obviously, the probable discrepancy between projected supply and demand can only be accommodated in four ways. 1) Rapid increase in exploration and drilling activity to provide new supplies in the amount projected by the optimistic U.S. Dept. of the Interior forecast, coupled with an increase in net pipeline imports from Canada and Mexico from the present 0.5 trillion cu ft per year

Jan 1, 1970

By AIME AIME

HONORARY COMMITTEE. HON. C. D. WALCOTT (Chairman.), Director U. S. Geological Surrey. HON. FREDERICK I. ALLEN, Commissioner of Patents. DR. FRANK BAKER, Superintendent National Zoological Park. MR. CHARLES A. BELL, President American Security and Trust Co. MAJOR JOHN BIDDLE, Engineer Commissioner of District of Columbia. ADMIRAL C. M. CHESTER, Superintendent U.S. Naval Observatory. GENERAL WILLIAM CROZIER, Chief of Ordnance, U. S. A. ADMIRAL GEORGE DEWEY, Admiral of the Navy. COLONEL CLARENCE R. EDWARDS, Chief Bureau. of Insular Affairs. MR. WILLIAM C. FOX, Director Bureau of American Republics. MR. CHARLES C. GLOVER, President The Riggs National Bank. GENERAL A. W. GREELY, Chief Signal Officer, U. S. A. MR. BERNARD R. GREEN, Superintendent Library Building. GEN. G. H. HARRIES, Vice-President Washington Electric Railway Co. HON. E. A. HITCHCOCK, Secretary of the Interior. COMMANDER H. M. HODGES, Chief Hydrographer, U. S. N. PROF. W. H. HOLMES, Chief Bureau of American. Ethnology. PROF. S. P. LANGLEY, Secretary Smithsonian Institution. GENERAL ALEXANDER MACKENZIE, Chief of Engineers, U. S. A. ADMIRAL N. E. MASON, Chief Bureau of Ordnance, U. S. HON. WM. M. MEREDITH, Director Bureau of Engraving and Printing. HON. V. H. METCALF, Secretary Department of Commerce and Labor. HON. WILLIS L. MOORE, Chief -U. S. Weather Bureau. HON. PAUL MORTON, Secretary of the Navy. MR. F. H. NEWELL, Chief Reclamation Service, U. S. Geological Survey. HON. S. N. D. NORTH, Director Census Office. CAPT. E. C. PENDLETON, Superintendent Naval Gun Factory. MR. GIFFORD PINCHOT, Chief Forester, Department of Agriculture. MR. HERBERT PUTNAM, Librarian of Congress. ADMIRAL CHAS. W. RAE, Chief Bureau of Steam Engineering, U. S. A: MR. RICHARD RATHBUN, Assistant Secretary Smithsonian. Institution. HON. W. T. RICHARDS, Commissioner General Land Office.

Jul 1, 1905

By JOHN JANNEY

STABILIZATION of the adjustment of normal consumption to normal production of world commodities is quite different from reducing production until visible surpluses are consumed. The first means restoration and maintenance of prosperity, the second means merely a temporary alleviation of a condition with the prime cause remaining uncorrected. Overproduction of foodstuffs in some sections of the world while millions starve in other sections represents not so much overproduction of foodstuffs as mal-distribution of foodstuffs. The flour mills of Washington and Oregon normally ship quantities of flour to China. Now, the wheat that would make this flour goes East instead of West. Is this overproduction, or is there something wrong that calls for study, analysis and correction? Can the plan used by the ostrich of hiding its head in. the sand get us by this present world tragedy, or must the challenge to solve this problem be met, constructively? Can we not make out of this breakdown in the world's economic system an opportunity? And use it as the stimulus for remedying the basic cause of the trouble and not content ourselves with devising temporary expedients that aim at remedying this or that of the obvious conditions, in themselves not causes at all but rather the evidence of causes, or that are the symptoms of the real trouble.

Jan 1, 1931

By B. F. Westfall

Throughout the 1960's and 1970's world trade grew rapidly, reaching a peak of USS1.8 trillion in 1980. Since then the world recession of the early 1980's shrunk trade to about US$1.6 trillion. The reduced cash flow to developing economies made it difficult to service their huge international debts, Nowadays lenders are reluctant to grant Third World countries additional credit. The shortage of export financing, plus trade barriers set up by developed countries, is further inhibiting international trade. Therefore, countries are turning to new and creative alternatives to financing imports of consumer as well as of investment goods. Non-cash transactions, including different forms of countertrade, are rapidly growing alternatives to traditional trade financing patterns. In 1983 about 30% of international trade, or close to US$600 bill ion, were presumably done by non-cash transactions, up from barely 2% in 1976. By year 2000, half the world trade is likely to be conducted on basis of barter. As of mid-1984 some 88 nations used countertrade regularly and Governments of at least 15 Latin American countries had arranged or mandated commercial countertrade.

Jan 1, 1986

By Milford L. Skow

MICA is a group name for a number of complex hydrous aluminum silicate minerals that have a sheet or platy structure and extremely variable and complex compositions containing various metallic ions, particularly those from the alkali group. Muscovite and phlogopite, the two varieties of significant commercial value, are the principal consideration of this report; muscovite has major importance industrially. The mica crystal, because of its laminated structure, can be split easily and accurately into thin films that are transparent, flexible, elastic, tough, and waterproof and have outstanding dielectric and insulating characteristics. This combination of properties is not duplicated in any other known substance. The world production of mica can be divided into two main classifications: (1) Sheet mica and (2) scrap mica (including flake mica). In general, separate divisions of the industry produce these two classes of mica, which differ widely in their uses and in the forms in which they are marketed. A glossary of mica terminology is given in appendix A.

Jan 1, 1962

By Paul M. Tyler

In 1939, American industry got, off to a poor start, slowed down further during the first quarter, quickened after May, speeded up still more when war broke out again in Europe, and ended the year at a pace close to an all-time record. The average index of general business activity for the entire year (105) was well ahead of that for 1938 (86), failed to equal that of 1937 (110), and fell behind the average for 1929 (119) by a wide margin. (Federal Reserve Bank yearly indexes in parentheses).

Jan 1, 1940

By Sidney Katell

This report, covering the period January 1969 through December 1969, is a continuation of a series that began with the publication of Information Circular 7516 in October 1949. It is the 11th in a series of reports prepared in cooperation with the American Association of Cost Engineers. The abstracted articles are concerned with all phases of cost engineering in the field of chemical and petroleum plants and related subjects. They are from the following sources: 1. American Association of Cost. Engineers Bulletin. 2. Bureau of Mines Information Circulars. 3. Bureau of Mines Reports of Investigations. 4. Chemical Engineering. 5. Chemical Engineering Progress. 6. Chemical Week. 7. Coal Age. 8. Coal Mining and Processing.

Jan 1, 1970

By D. S. Kingery

Recent Federal coal-mine inspections have revealed some good and some definitely hazardous practices and systems for transporting; handling, and storing lubricants in and about coal mines. Improper storage or handling of. lubricants in coal mines has caused disastrous mine fires or, by supporting combustion, has made fires from other sources more difficult to fight. Careless handling of grease and oil around electrical equipment wastes much oil and permits entrance of grit and foreign substances into the working parts, which causes excessive wear and increases the possibility, of electrical ignition.

Jan 1, 1943

By Paul M. Tyler

"In preparing this paper the writer has perforce depended mainly upon published information, including the catalogs and pamphlets issued by importers and dealers such as the Diamond Drill Carbon Co. and J. K. Smit & Zonen. Special acknowledgment is made to various articles published by S. H. Ball. The writer of this paper, however, is alone responsible for statements herein contained and since he has often found it necessary to rationalize apparently conflicting opinions of recognized authorities on this little-known subject, he will welcome constructive criticism from the trade.Two types of diamond are extensively used for industrial purposes. One type, known as bort or bortz (boort, boart, bowr, etc.), consists of diamonds of the gem variety but unfit for cutting into gems. They may be colorless, yellow, brown, or gray. The other type, carbonado, known in the trade as ""carbon"" or ""black diamond,"" differs greatly from the white diamond, being opaque and apparently amorphous or noncrystalline. Actually, instead of forming a large single crystal as in a gem stone, carbon diamond comprises a mass of microscopic crystals that interlock to form a tough, homogeneous material with no planes of cleavage. It is found in various colors -- black, dark green, brown, and gray -- but usually it has .a dark lustrous black surface, with a resinoid or submetallic appearance, often resembling fine-grained steel. Upon exposure to the air the broken surface gradually darkens to an ash-gray color. Ballas is a special type of carbonado in which the crystals are definitely-oriented around a central nucleus. They are harder and tougher than ordinary carbonado but are much scarcer. The Cape ballas is reputed to be not quite so tough as Brazilian ballas but tougher than carbon or bort.The diamond crystals are isometric and take a variety of forms. The cleavage is octahedral and well marked. A crack is easily -started parallel to an octahedral face, and bort or gem diamonds are notoriously brittle, especially when subjected to sudden shock. Even carbonado, while it has a high resistance to slowly applied pressures, may be chipped or broken by a sharp blow.Exposed to radioactive rays, the diamond becomes phosphorescent; this property is often utilized to distinguish it from quartz, topaz, or glass. The unusually high refractive index likewise aids in its identification in the case of a more or less transparent stone. At the temperature of the electric arc, diamond is converted into graphite, another form of Carbon but one of the softest mineral substances. At a much lower temperature, as low as 1,5620 F., the diamond may be burned like ordinary carbon in an atmosphere of oxygen, and according to some authorities there is danger of burning a diamond if overheated even in air."

Mar 1, 1932

In 1984/85 financial year Australia produced 529 thousand barrels per day (kbd) of crude oil. By far the major contribution (453 kbd) was light waxy oil from offshore Gippsland, Victoria. When these discoveries were made in the latter 1960s, imported oil was available in abundant supply and at low prices. Because of this, the Gippsland producers persuaded Government to control the marketing and pricing of their crude, and thus provide the required security of offtake. Political events in the middle East created supply shortages during the 1970s, and dragged up government selling prices for OPEC crude oil. Thus Arab Light crude that sold for less than US$2/barrel (bl) in 1970 reached $34/bl in 1981. Following the consequent decline in world oil demand, in 1982, Australian refiners sought to evade their obligation to lift Gippsland crude. Hence, in 1983, the Government was forced to introduce a floor quota of 385 kbd of Gippsland crude liftings and to allow producers to export any additional production refiners did not require. On expiry of the old arrangements, Government introduced a partial free market from January 1985, whereby the balance in excess of 350 kbd may be sold to Australian refiners at negotiated prices, or exported as before. In 1984/85 exports were some 90 kbd and will be higher in the current year. About half this total has been exported by BHP, providing valuable experience and lessons which are described in the paper.

Jan 1, 1986

By George C. Branner

This circular is concerned with eight nonferrous scrap metals as they generated, collected, prepared, and consumed in California. Brief reference also is included with respect to Nevada and Hawaii. Four of these scrap metals - copper, lead, aluminum, and zinc - are of major importance and make up about 95 percent of the total value, whereas the remaining four - antimony, magnesium, nickel, and tin - make up the remaining 5 percent. For convenience, the subject matter is divided into three parts, (1) Data with respect to the collection, preparation, and marketing practices that are common activities to all the nonferrous scrap metals; (2) separate discussions and statistical data with respect to each of the eight nonferrous scrap metals in California; and (3) data with respect to Nevada and Hawaii.

Jan 1, 1962

By A. L. Holmes

This presentation in the open pit session deals with the development of a phosphate rock strip mine by CF Industries, Inc., a company that does not presently mine in the Central Florida Phosphate District. Land acquisition, engineering, financing and environmental permitting activities were begun in early 1975; site preparation, environmental monitoring and dragline construction began in mid-1975. The operation is due on-stream in late 1978. The reserve acquisition, permitting, and financing could each easily be developed into a separate paper of interest. Each, however, has been covered before for other mining ventures with similar capital and environment requirements. For that reason, I have chosen to discuss what CF Industries, Inc. is, why it is entering this new sec-tor of the agricultural chemicals business, and, to keep at least some technical basis, what design modifications are possible when the total mine output is used captively and it is unnecessary to have the flexibility to meet the numerous transportation and customer specification considerations. In an attempt to show the size and complexity of the CF organization, a brief description of existing facilities should help show why the big interest in mining phosphate rock.

Jan 1, 1977

By Fredrick L. Johnson

In 1986, at the request of the U.S. Bureau of Land Management, the U.S. Bureau of Mines studied 25,640 acres of the 29,680-acre Devil?s Garden Lava Bed, 21,040 acres of the 28,660-acre Squaw Ridge Lava Bed, and 9,100 acres of the 12,600-acre Four Craters Lava Bed Wilderness Study Areas (OR-D01-D02, OR-001-003, and OR-001-022, respectively) in order to evaluate their identified mineral resources. The study areas are located in Lake County, OR, about 50 air miles southeast of Bend. No mineral resources were identified in the three study areas. The areas are almost entirely underlain by recent lava flows. Cinder cones occur in each of the areas; however, the best cinder occurrences are in the Four Craters Lava Bed study area. Slab lava, of facing stone quality, is scattered throughout the Devil?s Garden Lava Bed study area, and to a lesser extent, in the Squaw Ridge Lava Bed study area.

Jan 1, 1987

By Notman, Arthur

THIS is a day of surpluses, some good and some not so good. One can hardly pick up a newspaper, magazine, review or economic treatise without confronting the fact that we have or are threatened with more .of certain goods than we have use for, whether it be corn, wheat, cotton, coal or oil, -lumber, 'leather, newsprint, automobiles, zinc, lead, copper or what not. How did this unprecedented state of affairs arise? Who is to blame? How shall we avoid smothering ourselves in our own production? The voice of the farmer is raised in appeal to the Government to relieve him from the dilemma of his own fertility. In answer the Government employs thousands of experts and spends millions of dollars to aid the farmer. But to what end? To make him still more efficient so that he may produce even greater surpluses? Not satisfied with the result, it spends other millions to prepare vast areas of the arid land of the West for more farmers to cultivate and insure yet larger surpluses. Then what? Naturally another appeal to the Government to fix prices by financing the

Jan 1, 1928

Data released by the Commerce Department's Bureau of Economic Analysis show continued gradual change in the real GNP's rate of growth in 1984, which has eased from an annual growth rate of 10.1 percent in the first quarter lo 7.1 percent in the second quarter, and then to 2.7 percent in the third quarter. The automobile industry strike in the last half of September had only a small effect, estimated at less than a 0.1 percentage point reduction in the growth rate. Among the components that comprise the GNP, personal consumption and fixed investment grew at lower real rates in the third quarter than in the second quarter, while net exports decreased. Personal consumption expenditures increased $0.4 billion in the third quarter, compared with an increase of $20.1 billion in the second quarter. Nonresidential fixed investment increased $3.9 billion in the third quarter, compared with $9.6 billion in the second quarter. The other component of fixed investment--residential investment--increased from $60.8 billion in the second quarter to $61.2 billion in the third quarter. Real net exports of goods and services decreased $1 1.3 billion in the third quarter, compared with a $3.1 billion decrease in the second quarter. Although exports increased from an annual rate of $144.7 billion to $150.2 billion, imports increased much more, from an annual rate of $1 56.2. billion to $172.8 billion (table 1).

Jan 1, 1984

By Thomas F. Clemens

This paper covers various changes in government regulations, taxation, and legislation for the past two plus years and the up- coming one. Part of the paper will discuss recent business conditions and how they have affected the cement and lime industry.

Jan 1, 1983

By James M. Barker

No commodity agreements now exist for sulfur and a lack of reference to sulfur commodity agreements exists in the literature. Law (1975) made a passing reference to sulfur as one of a group of commodities where "there have been additional control efforts of various types." Clearly, sulfur was a candidate, at least conceptually in the past, for some form of commodity agreement and the following discussion centers on the world sulfur market of the early 1980's in this context. GENERAL THEORY OF COMMODITY AGREEMENTS The upsurge in demands for commodity agreements seen in the last decade or so stems largely from agitation by the less developed countries (LDC) for better economic treatment by more developed countries (MDC). Several economic factors, real or imagined, adversely affect the LDC's as follows (MacAvoy, 1977): 1) variable demand in MDC's causes wide fluctuations in commodity prices which hurt the economies of commodity producers, who are often LDC's although consumer economies may also benefit from more predictable prices; 2) a general decline of commodity prices relative to the price of manufactured goods which hurts commodity producers in their balance of trade while their stocks and overcapacity rise; 3) instability of LDC economies enhanced by the above factors lowers internal stability, inhibits foreign investment, and retards economic growth; and 4) a lack of self respect when dealing with developed countries o, following the OPEC lead, LDC producers want the stature related to cartel market power.

Jan 1, 1985

By Corwin L. Cooper

This vapor, which describes mining and milling methods and costs at the Knob Hill gold mine, is one of a series being prepared by the Bureau of Mines on gold mining and milling practices in the United States. The mining properties owned or controlled by Knob Hill Mines, Inc., are situated in the Eureka mining district on a country road 2 miles up Eureka Gulch from the town of Republic, county seat of Ferry County, Wash. The district is about 140 miles northwest of Spokane by road and 35 miles south of the international boundary line. The altitude at the mine office is 2,700 feet.

Jan 1, 1940