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By Grant R. Brown

The purpose of this opening paper is to provide an overview of incentives strategies. This overview includes a discussion of the different types of incentives, their advantages and disadvantages and their potential application to the mining setting. Objective The primary objectives of incentive plans are to increase worker (including management) effectiveness and reduce unit labor costs. These plans can be grouped into two major categories: 1) non-financial plans 2) financial plans

Jan 1, 1983

By John A. Organiscak

The Bureau of Mines evaluated a new dust control technique for longwall personnel required to work at the tailgate end of the face. This technique utilizes a water-powered scrubber to clean a portion of the face air, which is discharged behind a brattice partition at the working area. Laboratory simulation of this system in a wind tunnel resulted in average efficiencies greater than 70 pct with system efficiency directly related to scrubber quantity. Underground evaluations indicated a similar direct relationship between scrubber quantity and system efficiency. Gravimetric measurements of respirable dust made during these underground evaluations resulted in average protection efficiencies ranging from 30.7 to 42.5 pct with increasing scrubber air quantity.

Jan 1, 1983

By Thomas R. Kuesel

In simpler times, construction was a cooperative undertaking. The frontier tradition of barn-raising is the construction equivalent of the academic ideal of a single student seated on a log with Horace Greeley. In a more complex world, ideals become more elusive. Still, it was only a generation ago that toll revenue bond financed projects generally involved a team composed of investment bankers, engineers, and construction contractors, who all shared a common objective -- to create something useful, at minimum cost and in minimum time, with fair compensation to all involved. In an increasingly contentious public climate, the team has too frequently been splintered into separate camps of owners, engineers, and contractors, who have lost the old objective of creation and have, under the guidance and control of the lawyers, substituted two new primary objectives: 1. To protect one's own skin. 2. To detect and punish culpable negligence of one of the other parties. This process has become so ludicrous that a number of thoughtful observers from all of the camps (including even some lawyers) have come to recognize that there must be a better way to undertake construction works than to use them as wrestling arenas. The road to improved contracting methods starts with mutual understanding of each other's problems and viewpoints. To this end, discussions such as this RETC session make a useful contribution. To

Jan 1, 1983

By Theodore H. Budd, Douglas J. Heinz

This report concerns the successful construction of Contract No. 287 of the Northeast Side Relief Sewer System for the Metropolitan Sewerage District of the County of Milwaukee. The contract involved the construction of approximately 3316 meters (10,880 feet) of tunnel concrete lined to 1.83 meters (72 inch) internal diameter; 30.48 meters (100 feet) of 1.83 meters (72 inch) reinforced concrete pipe jacked-in-place; a river crossing of approximately 107 meters (350 feet); 197 meters (647 feet) of 1.83 meters (72 inch) reinforced concrete pipe in open-cut; several diversion and flow monitoring structures; and miscellaneous manholes and appurtenances. The contract proposal, which was extremely prescriptive, did allow alternative methods of primary support consisting of precast reinforced concrete segments, steel liner plates, steel ribs with wood lagging, and combinations thereof in designated areas. The specifications required the contractor to designate which support scheme it intended to use. The specifications also required compressed air as a means of ground water control for approximately 2316 meters (7600 feet) of tunnel. The alternative selected in the bid proposal was the support method consisting of steel ribs and wood lagging for 2263 meters (7425 feet) of tunnel and steel liner plates for the remaining section. Shaft supports, by specification, were designed to be steel liner plate with steel ribs varying in size from 4.27 meters to 6.10 meters (14 foot O.D. to 20 foot O.D. ).

Jan 1, 1983

By R. Addison

This is the story of the Carlton Mill. But first-a little geography. For those who do not know where the Carlton Mill is, or, perhaps, have only a vague idea, its location is indicated in Figure 1. The plant is situated on the road between the two old mining towns of Cripple Creek and Victor, 10 the west of Colorado Springs. From Denver, it's about 110 miles by road. The story of the Carlton Mill began with the discovery of gold at Cripple Creek in 1890. This discovery set off a major boom such that, by the turn of the century, there were 450 separate operating mines in the district. Gold production boomed early and declined rather rapidly as indicated by the graph in Figure 2. Significant factors affecting production are shown on the graph-the raising of the gold price in 1934 from $20.67 to $35.00 per ounce and the government executive order L-208 in 1942 requiring the closure of all gold mines.

Jan 1, 1983

By Russell L. Dahl

In a continuing effort to improve plant efficiency, United States Steel's Atlantic City Ore Operations completed the rubber lining of its balling drums in late 1982. This resulted in benefits of reduced bentonite consumption, reduced maintenance costs, improved production rates, and lower power consumption. These advantages far outweigh the disadvantages of increased oversize production and increased surging on the roll screen sizing devices. Certain operating characteristics and variables are discussed herein.

Jan 1, 1983

By E. C. Roper

Landusky Mining, Inc. and Zortman Mining, Inc. are two registered Montana Corporations wholly owned by Pegasus Gold, Ltd. of Vancouver, B.C. The Zortman and Landusky Mines are located in the Little Rockies District of central Montana. The Zortman-Landusky mines produced 2,100 kg gold in 1982. A total of 3,250,000 t of ore per year are mined during the period March 1, to September 15, at an average grade of 1.04 gm/t (0.03 oz/t) gold and 13.4 gm/t (0.385 oz/t) silver at a cutoff grade of 0.35 grams of gold/ton (0.01 oz of Au/t) of ore. The stripping ratio during 1983 is anticipated to be 0.75/1 waste to ore. Combined average plant capacity of the two Merrill-Crowe plants is 9,840 lpm (2,600 gpm). The combined heap spray capacity of the two plants approaches 18,900 lpm (5,000 gpm). The mine employs approximately 200 people, about half of these work for the mining companies and the other half for the mining contractor, N. A. Degerstrom of Spokane, Washington. Net profit in 1982 for Zortman and Landusky Mining, Inc. approximated $4,900,000 at an average gold price of $11.40/gm.

Jan 1, 1983

By John B. Draper

The 1980 Mine Dewatering Act was enacted to protect water rights and to allow mine dewatering to proceed where impairment of a water right might have otherwise created a bar to mine development. In New Mexico, new appropriations for beneficial use are subject to the State Engineer's jurisdiction and are granted only upon a showing of non-impairment. Before 1980, mine dewatering was not considered a beneficial use, nor was it considered waste. The Act brings mine dewatering under the jurisdiction of the State Engineer, makes it subject to the same requirements as an application for appropriation for beneficial use, grants the right to replace the water of users whose rights would be impaired by mine dewatering without a plan of replacement, and extends the right of replacement to non-mining appropriations of water for beneficial use, Application of the Act requires determination of the definition of impairment (the threshold of significant impact on existing water rights), hydrologic evaluations to determine the impact of the proposed dewatering, and preparation and execution of a plan of replacement to avoid impairment of existing rights.

Jan 1, 1983

By Michael P. Evans

Traditionally in coal processing jigs have been used to clean the coarse coal fraction, the +3/8" or +1/4" material. Today with the advent of modern fine coal jigs in the United States, its place was moved from the coarse to the inter- mediate coal circuit, the 3/8" x 100 mesh. The most economical coarse coal circuit to build and operate is a heavy media bath circuit. The following table summarizes the cost per raw coal ton processed for a coarse coal jig circuit, and a coarse coal heavy media bath circuit. The flowsheets used to compare these two circuits are shown in Figures 1 and 2.

Jan 1, 1983

By Thomas Hard

A description is given of a new facility processing blast furnace slag into a high quality cementitious material to be used as an ingredient in concrete for general construction purposes. A brief history of the process is given, followed by a detailed discussion of the water granulation system and the methods used to transport and dewater the granulate. Environmental advantages of handling slag away from the blast furnace by water granulation are included.

Jan 1, 1983

By Samuel W. Woods

The Tacoma, Washington plant is one of six plants in the United States Gypsum Company's Acoustical and Mineral Fiber Division. The Tacoma facility was acquired in 1959 along with six other mineral wool plants from the American Rock Wool Company. Originally, the Tacoma plant was built as a carbide plant during the Second World War and after that was converted and operated as a mineral wool plant by several insulation companies. Through these early years, the use of raw materials at Tacoma consisted primarily of slags along with small percentages and various combinations of silica (in various forms such as gravel), limestone and basalt. These raw materials were melted in cupolas using coke as the heat source. Raw material usage and types as well as mineral wool production methods and equipment remained without major changes for many years.

Jan 1, 1983

By Richard R. Klimpel

The first part of this two-part article summarizes the result of a 10-year, multimillion dollar research and plant testing program involving operating mining companies throughout the world. The program was aimed at developing a better understanding of the influence of slurry rheology on the performance of mineral/coal grinding circuits. Part 1 presents the basic concepts identified, including typical laboratory results showing the influence on grinding behavior of controlled changes in percent solids, particle size, slurry temperature, and viscosity control chemicals. Part 2, in January, will illustrate typical industrial scale test results on both open and closed circuits using the concepts presented in Part 1. Special emphasis will be placed on identifying some industrial operating implications of controlling rheology by different methods. Introduction The industrial-scale practice of wet grinding minerals and coals in tumbling media mills (ball, rod, and pebble) is well-known to operating mineral processing engineers and plant design personnel. Over the last century, considerable experience and data has been collected, correlated, and put into rules or guidelines for successful circuit design and operation. Typical factors influencing circuit throughput that have been analyzed in some depth are mill diameter and length, grinding media size and loading, feed and product particle size, mill power use, and the interaction of classifier type and efficiency with the grinding device. Until recently, knowledge of slurry rheology influence on large scale grinding circuit performance has been limited. Even today slurry rheology effects are essentially ignored in plant design. Indeed, in most plant operations only qualitative guidelines are followed. For example, too thick a slurry causes throughput losses and too thin a slurry uses excessive water or causes water handling problems such as pumping limitations. A search of published literature and numerous discussions with experienced plant operating personnel has shown an awareness that changing the percent of solids in the mill influences grinding or the response of grinding involving fine feeds versus coarse feeds. However, most the work identified relative to rheology effects in mineral/coal grinding was qualitative. Even in the few studies that were more quantitative, the scope of the work was usually too narrow to draw general conclusions. Also, the detailed rheological characterization tied to observed breakage and the combination of laboratory to industrial-scale testing that is required to develop a broad understanding of any factor influencing grinding had not been done. In this environment, this detailed program began in 1967. It had three distinct goals: • To develop a basic understanding of slurry rheology influence on breakage characteristics in the laboratory. • To test general rheology concepts developed in the lab on the industrial scale. • To develop a commercially viable chemical approach to controlling slurry rheology that would lead to the use of chemical grinding additives or grinding aids. The goals have been met, at least in part, this year. A small fraction of the extensive laboratory and plant results have been made available in published literature. Much of the research program dealt with identifying and developing chemical grinding aids, but a lot of useful and practical information on percent solids, particle size, and slurry temperature influence on grinding circuit performance also was collected. The purpose of this article is to present a clear and concise sum¬mary of the results of the entire program. The importance of rhe¬ology control in grinding circuit behavior will be demonstrated using a series of carefully per¬formed industrial scale experi¬ments (both open and closed cir¬cuits) that have not yet been reported in general literature. Mining companies participating in the test program on a proprie¬tary basis have found the informa¬tion in this article to be useful in better understanding and improv¬ing circuit performance. Viscosity Effects in Grinding Studies In this program&apos;s previous labo¬ratory studies, it was shown that there is a consistent pattern of change in specific rates of break¬age of both mineral and coal slur¬ries as slurry fluidity changes. Using the net production rate of material smaller than some spec¬ified size-for example, kg/hr of <75 µm (200 mesh)-as an index of mill production in a standard batch mill test (with a given feed material, feed size, mill, and mill conditions such as constant time of grind), the following facts were established (see Fig. 1): • The normal range of low den¬sity, low viscosity slurry (region A) gave no variation in mill produc¬tion. The measured rates of break¬age exhibited normal first order grinding. • Grinding of a somewhat higher viscosity slurry (region B) could give increased production. The higher viscosity was obtained

Oct 12, 1982

By Paul D. Tomlingson

Maintenance costs in the mining industry often account for as much as 18-20% of total operating costs and with the cost of labor and materials rising, they threaten to become an even larger percentage of the total. Yet, without an effective maintenance program costs can soar beyond what they would be without a program. In other words, when production equipment is down, there is no production and no product to sell in the marketplace. This cost of downtime in lost product far exceeds the actual cost of maintenance, which is defined here as labor and materials. Thus, mine management must have an effective maintenance program to avoid downtime and meet production targets. Attaining an Effective Maintenance Program Many mine management and operations supervisors believe that an effective program is a function of how hard they push maintenance. Yet, when vital production equipment is inoperable and production is lagging, no amount of pushing helps. In actuality, maintenance has little control over its own destiny and needs support from other departments to deliver good service. Success of the maintenance program depends on gaining control of those factors that directly influence maintenance. Consider the following. Organization-The maintenance organization must be structured for maximum responsiveness to production needs. Unfortunately, some needs are immediate and many are unknown in advance. The maintenance department has little control over them. These outside influences limit the department manager&apos;s ability to control his own organizational structure. Preventive maintenance procedures-Routine lubrication, equipment inspection, minor adjustments and the like are controlled mostly by maintenance. Yet, scheduling preventive maintenance depends also on the availability of equipment controlled by other departments. Planning-The purpose of planning maintenance jobs is to ensure that the best use is made of maintenance resources. If the production department creates an environment of running repairs and emergencies, there can be little planning. Even well-planned jobs will suffer if there is less than full cooperation in carrying them out. As a consequence, the maintenance department is not blocked from planning, but the value of its planning is reduced. Scheduling-Maintenance scheduling should be a joint effort. Although maintenance does the planning, production must agree to the scheduled maintenance of its equipment. Workload-As a service organization, the maintenance department has limited control over its workload because it must consistently respond to other department&apos;s demands. At best, maintenance controls only the fixed portion of its workload-utility work, janitorial service, maintenance shop work, and assigned repetitive and preventive maintenance duties. Unscheduled and emergency work are initiated by operations. Major maintenance actions require full cooperation. Labor productivity-The effective use of labor is tied to other key functions of maintenance. These include organization, preventive maintenance, planning, scheduling, and emergency work. An area type organization, for example, can often respond more quickly to immediate needs than a centrally controlled maintenance group. Yet, area maintenance can result in lower labor productivity unless tight control is exercised. One of the advantages of a good "detection-oriented" preventive maintenance program is early discovery of problems and better opportunity to schedule corrective work in advance. Under planned work conditions, use of labor can be more productive. Complete planning and scheduling can minimize time spent on each job, increase effectiveness of supervision, and improve labor productivity. Finally, if emergency work is minimized, there are fewer delays, less lost time, better coordination, and more productive use of labor. While labor productivity is an important factor in carrying out maintenance, it also is influenced by outside factors. However, few realize the impact of being able to improve maintenance productivity. By improving the productivity of 30 men from 30% to 40%, maintenance could accomplish the same work value as if it had added 7.5 men working at 40% productivity. 30 (1800) (40%) = 21,600 man-hr/yr 30 (1800) (30%) = 16,200 man-hr/yr Difference = 5,400 man-hr/yr 1800 (40%) 7.5 men Leadership-The maintenance department can have significant control over its own leaders, the front-line foremen, but they must

Jan 12, 1982

By Paul L. Russell

Numbers, arithmetic, mathematics. Where did it all come from? Who needs it? We all do, but many school children would not agree. Engineers, physicists, accountants, tax collectors, and most of the general public are well aware that modern society in large part is founded on mathematics and could not exist without it. Mathematics developed over thousands of years as part of the everyday life of man. No one area, tribe, or race can claim discovery. In fact, from the records that do exist, it is evident that many facets of mathematics were discovered independently of others who made similar discoveries. While proof may be lacking, the earliest concepts of mathematics may be some 250,000 to 300,000 years old. The first use of numbers as written records is unknown. However, a bone of a young wolf deeply cut with 55 notches-arranged in two rows, one of 25 notches, the other of 30-was found in Czechoslovakia. Dated to be about 30,000 years old, it is perhaps an early record of some kind of counting system. It is assumed that mathematics was developed as an answer to man&apos;s practical needs, but anthropological studies suggest that the art of counting may have developed in connection with the needs of primitive religious ceremonial rites. Fingers probably were first used to designate sets of from one to five objects. Using both hands, up to 10 items could be indicated. As civilization developed, so did the need for more flexible systems to record items of trade, measure land, and figure taxes. Aristotle noted that the development of the decimal system comes from the fact that most people are born with 10 fingers and 10 toes. In spite of this obvious fact many early civilizations used binary, ternary, and quinary systems while vigesimal systems (with 20 as a base) and even sexagesimal systems (with 60 as a base) were used by others. A form of writing was in use in both the Mesopotamian and Nile valleys as early as 3000 to 4500 B.C. In Mesopotamia, wedge-shaped marks were impressed upon soft clay tablets that were hardened in ovens or by the sun. Many thousands of such tablets have survived. When the tablets were finally deciphered, some were found to be records of items shipped in trade, inventories, tax accounts, and mathematics exercises for teaching. Mesopotamia is also the source of an interesting board game dating back to about 2500 B.C. Its buttonlike men and triangular dice were apparently used with squares of shell, inlaid with lapis lazuli and red sandstone. Unfortunately, rules of play were not found. In Egypt, record preservation was somewhat better. Discovery of the Rosetta Stone in 1799 eventually led to deciphering the Egyptian hieroglyphics that included a numbering system at least 5,000 years old. These records show a competence in counting and numbering. A calendar of good accuracy may have been in existence as early as 4,200 years ago. Mathematics, as practiced today, developed when the Greeks added logic and proof to arithme-

Jan 12, 1982

By Thomas O’Neil

Part 2 of this article continues with a discussion of features that distinguish contemporary investment analysis in mining from earlier methods. Part 1 traced the evolution of evaluation methodology from the traditional and discounted cash flow methods to the present. Quantitative investment models of the past 20 years played an important role in mine evaluation, but a new integrated approach to mine investment decision-making is now developing because of growing economic, technical, and political uncertainties. One of those uncertainties -inflation-was discussed in Part 1. Increased Risk At a time when mineral production technology and analytical evaluation tools have never been more sophisticated, it may seem anomalous to claim that mining ventures are riskier. Whereas technical risk has, indeed, been notably reduced, business risk the chance of a major loss due to market factors-has increased. This has been caused by two factors: the rapidly rising capital requirements of new projects and increasingly unpredictable future economic conditions. These difficulties are compounded by the long lead times of large, new mining projects. Rising Capital Requirements A $100 million investment is no longer considered to be a large mining project in most cases. For a large metal mining project, the total cost of the concentrator alone can exceed $100 million. Amoco Minerals&apos; Thompson Creek molybdenum mine being developed in Idaho will cost over $350 million, for a relatively modest sized (23-kt/d or 25,000-stpd) ore operation with no extraordinary features. For a major grass roots copper operation producing blis¬ter or refined copper, the capital requirements are billions of dollars, not millions. Project costs are higher for two reasons. One, the projects themselves are larger; and two, the capital cost per unit of production is rising rapidly. Projects are larger because lower grade ores, yielding smaller margins, must be mined in greater volume-particularly in view of the high fixed costs of modern technology. When analysts contemplate any capital project, an important consideration is the minimum economic size of the facility. This is the smallest size that can be built and still be competitive on a total unit production cost basis. In the conventional copper smelting business, for example, a production rate of at least 91 kt/a (100,000 stpy) of blister copper is about the absolute minimum for reducing unit fixed costs to competitive levels. Clearly, many variables affect the minimum economic size of a mining facility, but with few exceptions that size continues to grow. Unit capital costs of new mining projects also are continuing to rise. The accompanying table shows that the capital costs in primary copper production have risen faster than the cost of living. Of particular note is the capital charge of over $1.70/kg (77411b) required for a new, fully integrated facility in 1981. Thus, the mid-1982 copper price would not even cover the cost of capital for a new copper producing complex without considering the direct operating costs for such a facility. The breath-taking costs of new mining projects are caused by factors such as increasingly complex technology, the rising social costs of creating attractive living and working conditions for employ¬ees, and the expenditures re¬quired for environmental protec¬tion. For whatever reasons, how¬ever, unit capital costs in mining continue to exhibit staggering growth rates. Future Economic Conditions Risk is not only a function of the size of the potential loss-an im¬portant measure of which is the capital intensity of mining dis¬cussed above-but also of the like¬lihood of incurring the loss. It is here that the ever increasing lead times of mining projects and the glaring limitations of economic forecasting are so important. In comparison to nearly all other in¬vestments, mining has more capi¬tal at stake for a longer period of time before commercial uncer¬tainty is resolved by distant eco¬nomic conditions that are subject to high forecasting errors. A sobering example of the pre¬ceding points occurred with the Lakeshore copper mine in south¬ern Arizona that Hecla Mining Co. undertook to finance and manage in 1969. The project was a joint venture of Hecla and the El Paso Natural Gas Co. and included two mines-one producing oxide ore and a second in the sulfide zone¬and a complex processing facility producing both electrowon cop¬per cathodes and copper precipi¬tates. The project originally was

Jan 12, 1982

By Katzer R. Klimpel, J. Sewell

Dr. Roussey Roussev The use of chemical additives on grinding is of significant importance considering the high energy consumption of grinding processes. My research indicates that the dispersant approach explains the effects, in this particular case of wet grinding. Further, the dispersant approach combined with torque measurements give the possibility of clarifying the mechanisms involved when using grinding aids. I find the conclusions derived from the data obtained to be correct and useful for grinding. In general, I agree with the explanations. However, I would like to discuss several additional points that I consider to be important, and in the same time to mention some of my own results from investigations similar to those presented in the study under discussion. The "bed volume concept" and the change of slurry viscosity explain adequately the data plotted on fig. 3, in conjunction with Figs. 1 and 2. However, the significant increase of the average torque in the case of 83% solid with XFS-4272 introduces the necessity of establishing the optimum of percent solid when dispersant is used. For example, the optimum percent of solid for different materials varies. One of the reasons is the material&apos;s mass density. On the other hand, it is necessary to determine the concentration of the chemical used. Because of this, it would be interesting to know how the cited concentration was selected. The supportive discussion and verification by Dr. Roussev, with results similar to that of the paper, is appreciated. I will try to answer the additional questions he has raised. To begin with, the mill was fitted with six lifters of approximately one-quarter inch height. There has been extensive lab and plant level work to understand downstream influences of using dispersants like XFS-4272*. In sulfide ore processing, which is the area in which most industrial scale testing has been performed with this approach, neutral to positive influences have been observed. For example, positive effects (e.g., increased recovery) have been noticed in flotation operations involving ores that have a tendency to produce excessive slimes upon grinding. (1) Also, the use of a dispersant has been shown to demonstrate a positive influence on classification by improving the sharpness of separation and preventing a decrease in d50 value that usually accompanies increasing flow rates to classifiers.(2) The biggest potential downstream problem is in thickening, which at the dosages involved, has not been a problem in plant scale usage. The commercial price of dispersants like XFS-4272 is quite variable depending on source, concentration, etc, but a typical cost of XFS-4272 to achieve a 10% increase in throughput in industrial mills has been between 20 and 35- US per ton of feed ore (1981).

Jan 12, 1982

By J. D. Miller, R. J. Smith

Earl C. Herkenhoff Publication of the article "The Flotation Behavior of Digested Asphalt Ridge Tar Sands" by R.J. Smith and J.D. Miller has confirmed and again spotlighted a most significant and important development in the field of tar sand and heavy oil mining. This is the ability to recover 95 % of the bitumen in dry tar sands by a hot water process. The initial investigation by Miller and Sepulveda in early 1978, "Separation of Bitumen from Dry Tar Sands," was the first blockbuter. It is disappointing that there has been so little scientific and industry ackowledgement that the authors laid to rest the long entrenched belief that the sand grains had to be "water wetted" for a hot water process to be applicable. Dr. Miller and his researchers at the University of Utah used slightly different mineral dressing terminology in describing their process but it is essentially the old, established technique of high solids attrition scrubbing at elevated temperatures with a conditioner or modifier, followed by dilution and froth flotation. Similar techniques were described in detail for other nonmetallic minerals in the mid-1940s by Stuart Falconer of American Cyanamid Co. The authors used a 15-minute "scrub" period (or in their terminology "digester step") at 73% solids and 95°C (203°F) in a 0.3 m solution of sodium carbonate -about 4 kg/t (8 lb per st) of tar sand. Flotation was at 10% solids. Obviously, the scrub is an expensive step with respect to energy input but the high recovery of bitumen appears to justify it. Two basic questions then arise: • What are the effects of shorter scrubbing time, lower temperature, and less sodium carbonate? • Would a two-stage approach be advantageous? That is, could you get the major proportion of the bitumen with a mild scrub and apply the high power and temperature only to the refractory portion? These variables should be evaluated. Apparently, all results were only for rougher flotation. What would the grade and recovery of bitumen be if multiple cleaner flotation steps were employed? We must concede that a 60-62% grade of bitumen leaves considerable room for upgrading. Finally, it should be noted by all executives who approve funds for heavy oil recovery schemes, most of which are variations of in-situ methods, that mining can yield a 95% recovery of bitumen. That is correct, 95%. Imagine what that does to the total barrels recovered from a heavy oil resource compared with the scrawny 30-35% maximum recovery we are getting now. The conclusion-let&apos;s mine heavy oil and tar sands. Reply by R.J. Smith and J.D. Miller We, too, share Mr. Herkenhoff s enthusiasm for the mining of tar sands-heavy oil and continue the development of related processing technology. Specifically, it will be noted that by appropriate control of bitumen viscosity in the feed (probably the most important variable for successful separation) the recovery can be accomplished at low digestion temperature and low addition of alkali. A 91 t/d (100 stpd) pilot plant based on our technology is now being operated by Enercor in Salt Lake City (Hatfield, Oblad, and Miller, 1982). In these same pilot facilities, rougher concentrates containing more than 80% bitumen on a dry basis are being produced from Asphalt Ridge Feed. However, the processing of certain other tar sands results in incomplete digestion of bitumen/sand aggregates as discussed elsewhere (Miller and Misra, 1982). Such undigested aggregates are shown in Fig. 1. In this regard, it is intended that a recycle stream will be installed in the pilot plant to provide for redigestion of middling products. Further details regarding surface chemistry aspects of this tar sand technology have recently been published (Misra, Aguilar, and Miller, 1981). References Hatfield, K.E., Oblad, A.G., and Miller, J.D., 1982, "Pilot Plant Recovery of Bitumen from Oil Wet Tar Sands," Processing, Second International Conference on Heavy Crude and Tar Sands, Caracas, Venezuela, Feb. 7-17. Hatfield, K.E., Oblad, A.G., and Miller, J.D., 1982, "Pilot Plant Processing of Oil-Wet Tar Sands," Symposium, Rocky Mountain Fuel Society, Salt Lake City, Utah, Feb. 18-19. Miller, J.D. and Misra, M. 1982, "Hot Water Process Development for Utah Tar Sands," Fuel Processing Technology, Vol. 6, No. 1, April, pp. 27-49. Misra, M., Aguilar, R., and Miller, J.D., 1981, "Surface Chemistry Features in the Hot Water Processing of Utah Tar Sand, Proceedings, "Symposium of Separation Science and Technology for Energy Applications," Gatlinburg, Tennessee, May 5-8.

Jan 11, 1982

By Adrian C. Dorenfeld, John T. Oleksy

John D. Maefadyen Subject paper unfortunately has some serious flaws negating the usefulness of the paper. The authors claim that sulfur is the major source of production problems in cement kilns. This is not the case. Sulfur is not a problem as long as the mole ratio of sulfur to alkali oxides is less than, or equal to, 1. This is attributed to the sulfur preferentially combining with the alkali oxides and not acting as a clogging agent due to the nature of the pre-heater vessels. Where the mole ratio exceeds 1, many methods are available to eliminate or reduce the clogging problems such as using the preheater bypass or a precalciner with up to 100% kiln gas bypass. In non-preheater kilns, the presence of sulfates is hardly ever a problem anyhow. Thus, the level of sulfur in the fuel and raw material that might cause problems is not a fixed amount, but is predictable. The purpose of the paper is to discuss the economics of conversion of kilns in the Indonesian and Phillippine cement industries from oil firing to coal firing. This economic analysis has very little to do with the sulfur levels. Thus, the section of the paper on sulfates is actually rather meaningless. The economic analysis is also rather meaningless because the authors have failed to follow accepted economic analysis procedures by including interest charges. They have fallen into the trap of confusing financing with economic evaluation. When the accepted methods of economic evaluation are used, the return on investment increases to about 35%. In conclusion, the paper is not a meaningful contribution, and sadly, quite erroneous.

Jan 11, 1982

By Henry O. Ash

On June 16, 1982, Rio Blanco submitted a request to the US Minerals Management Service for a suspension of operations under its federal oil shale lease. The company also wanted a five-year delay in the requirement for further minimum royalty payments and a five-year extension of the primary lease terms of 20 years. The request was granted in late July in the midst of yet another slump in oil shale activity. Rio Blanco holds one of four Federal oil shale leases that were granted under the Interior Department&apos;s Prototype Oil Shale Leasing Program in 1974. That year the DOI offered for lease six federal oil shale tracts, two each in Colorado, Utah, and Wyoming. The leases in Colorado and Utah were granted for substantial bo¬nus bids as shown in Table 1, but the Wyoming tracts had no takers. In the eight years hence, no oil shale has been produced commercially. Indeed, the prospects for successful oil shale development have fluctuated widely, continuing a 60-year- old cyclical pattern in the fledgling industry. The prototype program was developed and initiated while this infant industry struggled to begin anew, without the benefit of any federal oil shale leasing regulations, or any history of federal oil shale leasing at all. Permanent regulations were not required because the effort was limited and designed to provide the foundation for any future leasing program. Section 21 of the Mineral Leasing Act of 1920, a Nov. 30,1973 Federal Register notice, and the leases themselves constitute the legal and regulatory framework for leasing and developing prototype oil shale tracts. The prototype leases contain some unusual provisions including installment payments of the bonus bids, credit of early development costs against payments due the government, adjustment of royalty rates according to regional crude oil price fluctuations, and unusually extensive and detailed environmental stipulations. Several of the provisions were intended to provide incentives for early development and financial penalties for failure to develop. The requirement for minimum royalty payments in lieu of actual production royalties beginning in the sixth year of the lease falls in the latter category. After the sixth year, the required minimum payment is increased east year through the 15th year by an increment equal to that due in the sixth year. The minimum royalty then remains the same through the final five years of the primary lease term. Minimum royalty is calculates on a different production level for each prototype lease, based on the quantity of 125 L/t (30 gal/st) shale estimated to be recoverable from. each tract by room-and-pillar mining. That mining system was selected for reference as the only proven extraction method for oil shale at that time (early 1970s) The minimum royalty (production) rate was calculated for each tract by direct comparison of its estimated recoverable 125-L (30-gal) resource to a hypothetical tract containing 1.9 Gt (2.1 billion st) of recoverable 125-L (30-gal) shale. For the hypothetical lease tract, the minimum production for the sixth year was calculated to be 3.2 kt/d (3,500 stpd), increasing by a like amount each lease year through the 15th to a daily production rate of 31.7 kt (35,000 st). Under this formula, the hypothetical lease tract would yield $16 million in minimum royalty payments over the 20-year primary lease term if there were no production, no development credits taken, and no adjustment of the royalty rate due to fluctuation of regional crude oil prices. The production rate of 31.7 kt/d (35,000 stpd) was a somewhat arbitrary figure that was considered, in the early 1970s, to represent a minimum size for a commercial oil shale operation. A production rate of 7.9 dam3/d (50,000 bbls/day) soon supplanted that smaller mine production figure as a rule of thumb for the minimum size for a commercial facility. The proportional relation-

Jan 11, 1982

By Thomas J. Neil, O&apos

Most analysts find that progress has been evolutionary in any technologic field. To be sure, a few discrete breakthroughs can usually be identified, but viewed in its entirety, the curve of technologic progress over time tends to be relatively smooth with few discontinuities. Even in those cases where a major scientific discovery is achieved, the rate of technologic progress is limited by the often surprisingly slow rate of commercializing the concept into usable products. Whereas discovery and invention tend to be discrete events, technical innovation is often a painfully slow process. In spite of overall gradual change, technologic progress in most fields, when viewed in retrospect, tends to reveal certain relatively homogeneous periods where little change is evident, separated by episodes of accelerated progress. Thus, open-pit mining over the past century has changed from predominately train haulage to truck haulage and is now experiencing a major increase in belt haulage. Ore reserve estimation is another field that fits the same pattern, and the history of mine evaluation lends itself to a similar analysis. Evaluating mine investment opportunities is a fascinating aspect of mining. The unique set of risks inherent to every mining project is particularly intriguing. Geologic risks are most obvious, since faulty ore grade and tonnage estimates are among the leading causes of mine failures. Wide swine&apos;s in mineral commodity prices are usually cited as another major risk in mining. Because any ore deposit is a finite resource and the miner has limited discretion in selecting a mining sequence, mines are generally at the mercy of notoriously fickle commodity markets. There is a tendency for many mine investment analysts to feel that mineral market uncertainties are unprecedented in severity. Of course, prices in other markets rise and fall also-in some cases as precipitously as with minerals. However, two other mining characteristics tend to compound this marketing risk. First, the preproduction development period for a new mine is characteristically long. Under extremely favorable conditions, a significant mine may be developed in as little as two years, but the norm is four to six years or more. Second, mining is among the most capital intensive industries, consistently ranking near the top among all industrial sectors in assets per employee, and near the bottom in annual sales dollars per dollar of assets. Thus, mine investors typically have large sums invested for a long time before the outcome of the venture is determined by notoriously unpredictable markets. This is not a business for the faint of heart, and the importance of sound investment decision making is obvious. The high risk and technical complexity of mining operations have combined to require greater attention to financial evaluation by mining engineers than by most engineers in other specialties. Nearly all early mining engineering textbooks dealt with problems in mine valuation in a detailed manner; and, today, the sophistication of capital investment analysis is high in the mineral industries. Traditional Mine Valuation Methods Although some evaluation process has no doubt accompanied nearly every mine development throughout history, a formalized quantitative approach first emerged in the last half of the 19th century with the establishment of academic programs in mining engineering. The philosophy and approach to mine valuation that evolved at this time were, with periodic minor refinements, considered the standard for nearly a century. Only after 1960 did major changes begin to occur. The traditional approach to mine valuation reflected the investment community&apos;s historic attitudes toward risk. Mines were generally considered too risky for debt financing, and virtually every new mine was financed from internally generated funds or new equity subscriptions. The investment evaluation methods that evolved focused on mining&apos;s higher risk relative to other

Jan 11, 1982