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By J. Dehais, W. A. Wallace

The pressures of urbanization are forcing producers of construction minerals either to transport their product greater distances or find new mineral sources. In areas with significant urban development near the coastal zone, offshore resources may prove to be an economically attractive alternative source. This paper addresses the economic viability of offshore mining of fine mineral aggregate. It proposes a model using a mathematical programming formulation based upon past research on both the onshore construction aggregate industry and the coal industry. The model is then used to assess offshore mining economics in the greater New York metropolitan area. Results show that in this region total consumer cost would be reduced by offshore mining of fine aggregate. In addition, increasing economies of scale could be realized by progressively larger mining operations. The distribution of these savings is also discussed.

Jan 1, 1982

By C. H. Lieb

ONE astounding fact in the production of petroleum is the comparatively recent realization by producers that flowing production is the cheapest crude produced. About 1910 or even later, operators actually endeavored to get a producing well to pumping as quickly as possible after completion. A well was not really considered to be completed until it was operating on the pump. Remarkable progress has been made since then. It was not until about 1920 that producers began to take a serious interest in pressures and to think a little about proper methods of handling oil wells. Pressure gauges were installed, and records of pressures maintained, which was quite an innovation. Desultory experiments were made with tubing of different sizes, as well as experiments with placing the bottom of the tubing string at different levels in the well. Probably the first important departure from customary procedure was about 1926, during the Seminole development, when gas lift

Jan 1, 1936

By C. Richard Tinsley

Like most minerals, coal is inherently a demand-limited commodity. The very sedimentary nature of its occurrence implies greater availability potential than demand. But this situation is overridden by economics among fuels, between coals, and within coal blends. Such considerations make coal forecasting a very hazardous profession indeed. THERMAL COAL If one thought that the lead times involved with a mining project were very long, one has obviously not been exposed to the planning process in the electric generation business - a process seriously confounded by shifts in load growth, environmental pressures, capital intensity, security of fuel sourcing, inter-fuel economics, and so on. But as a general rule, the near-term forecasts for thermal coal can reliably be based on a bottom-up, plant-by-plant analysis. Cement plant conversions can also be reasonably estimated next in order of reliability, although they have a much wider spectrum of coal qualities and fuel sources to choose from with a notably higher tolerance for sulfur and ash. Finally, industrial demand can be assembled from the estimates for conversions by pulp/paper plants, chemical plants, etc. The industrial sector is harder to estimate, since it may involve small boilers or dual-fired units. Assessing demand in the Pacific Rim is relatively a straightforward process in the near term because the major importing countries are all located on the Asian continent with either negligible or very minor (yet stable) indigenous coal production, (itself often operated on a subsidized basis). Furthermore, all imports are seaborne. These major importers are Japan, Korea, Taiwan, and Hong Kong with Thailand, Singapore, and Malaysia up-and-coming consumers. The suppliers to this market all have substantial reserves to back up decades of exports to these countries. Australia, the US, Canada, South Africa, China, and the USSR dominate the supply side. The second oil-shock of 1979/1980 has convinced the importers that reliance on oil can be expensive and eminently interruptible. Thus, they are determined to diversify away from oil' to nuclear and coal for generating electricity and for coal for other purposes where possible. This trend is seen to continue even in the face of the oil glut worldwide and oil-price reductions in early 1982. But the importers are also convinced that reliance on one coal source and, in particular, one infrastructure route for the coal chain from mine to consumer can be equally expensive and interruptible. Strikes in the US and Australia; excessive demurrage at certain ports; relegation of coal to a lower priority on multiple-use railroads in the USSR and China; and concern over escalation on high-infrastructure or high-freight coal chains are among the risks worrying the importers. As a consequence, Pacific Rim thermal coal purchases are being allocated among supplier nations, between ports, and within each country. An example of Japan's shift away from Australia and toward the US and Canada is shown in the estimates in Table 1. But the confidence of the import estimates deteriorates sharply beyond the plant conversion timetables and construction schedules in the near term. If part of the second generation of coal-fired power plants can handle lower-energy coals, the field of suppliers could widen to accept sizeable tonnages from Alaska, Wyoming, Alberta, or New Zealand resources. These supply sources generally have some infrastructure or freight advantage to compensate for their lower quality and to compete on a delivered energy-unit basis. These also offer diversification in sourcing. And the possibility of coal liquefaction in Japan further widens the sourcing network. A great number of Pacific Rim coal forecasts have been generated, especially for Japanese thermal-coal imports which are expected to grow strongly in the 1980's. Since the Japanese themselves have not yet settled their energy policy, the exact numbers are hard to call. Nevertheless, at 50 million tonnes of imports in 1990, Japan would consume 50-60% of the total Asian thermal coal imports as shown on Tables 2 and 6. The next most important consumers are the "island" nations of Korea, Taiwan, and Hong Kong (see Tables 3-5). All three are embarking on power plant developments usually with captive unloading facilities, capable of accepting more than 100,000-dwt vessels. Korea, with no-indigenous bituminous coal, is not especially enamoured with US coals, which are deemed too heavily loaded by freight and infrastructure costs -- up to 70% of the delivered price. Thermal coal contracts are presently split to Australia (70%) and to Canada (30%). Korea Electric Power Co. is already considering second-generation boilers capable of burning lower-quality coals than the present standard. Korea does burn domestic anthracite.

Jan 1, 1982

By Paul M. Tyler

MUCH information concerning pegmatites which was thought to be true a few years ago has been proved false, and what is now actually known about some pegmatites is not true of many others. The erratic and seemingly unpredictable structure and variable composition of this class of mineral deposits has been widely emphasized. Even parts of the same pegmatite body exhibit marked differences in texture, mineral composition, width, and attitude. Constructive geological thinking in respect to pegmatites now aims to establish general laws rather than to stress the confusing diversity of features having no special economic significance.

Jan 9, 1953

By W. E. Benton

The name Perlite applies to both a hydrated volcanic glass containing from 2% to 5% combined water and to the lightweight material that is produced from expanding the sized volcanic glass. Upon heating, Perlite expands to about twenty times its original volume which results in a material of low density, low thermal conductivity, and high sound absorpt'ion. Perlite ore is mined by open pit methods and is crushed and sized to provide specific gradations for expanding into products used in acoustical tile, built- up roofing, filtration, lightweight concrete and horticultural applications, among others. In 1983, the U.S. production of crude Perlite came from 12 mines and 6 western states, with apparent consumption and production estimated to be about 6% lower than 1982. The average price per ton was slightly higher than in 1982.

Jan 1, 1984

In those days no one worried - there were plenty of other things to do. But in'these days it is different. Everyone worries- and. because there is so much worry, emotion has entered the picture. And, worse than that, capital is being made in political circles. People who were quite unaware, five years ago, that any problem existed, have now become experts on the subject, and shout to high heaven that something should be done - and yet they go on using the leaded high octane petrol they deplore so much. And even scientists, who should know better, adduce only such evidence as fits the argument in hand. And the Press is not without blame - some of its reportings is open to serious question, whatever may be the excellence of its motives. The point is made that one should know what one is talking about. And make sure that the evidence quoted is fact - and make sure too, that all the evidence is used, not only that which suita the argument.

Jan 1, 1971

By Henry Hebley

IN preparing this paper it has been the aim of the writer to keep the problems of both producers and consumers in mind. Until now, no attempt has been made to familiarize each group with the other's practice and limitations. This paper is an effort to acquaint the readers with some of the factors pertaining to the problem and cost of mining and preparing steam coal, and also to the economics of producing steam with such coal. In recent years all lines of endeavor have turned to intensive mechani-zation in order to lower the unit cost of production. The average fuel consumption in steam electric generating stations has dropped in 20 years from 4.0 lb. to 1.4.1b. per kilowatt-hour; while the modern power station can generate 1 kw-hr. on a fraction under 1 lb., or 13,000 B.t.u. coal. Also, the amount produced per man has in that same period risen from 3.8 to 8.2 tons, owing to the use of modernized equipment below ground for coal cutting, drilling, shooting, loading, hauling and hoisting. Unfortunately, the rapid speed of 5 tons per minute of operation at which the coal is loaded mechanically precludes any appreciable removal of impurities at the coal face, so that the raw coal is hoisted containing a markedly higher percentage of impurities than the hand-loaded coal, which was subjected to the scrutiny of the miner during loading. Also, during the past 20 years, certain seams of coal lying close to the surface have been made economically available by the improved design of electrically operated shovels and draglines for the removal of overbur-den running as high as 56 ft. This strip coal frequently contains so much ash in the raw state (Table 1) that it would have no sales value. There-fore, coal preparation must be adopted to beneficiate the raw product. Some seams in the United States have a decreasing ash content with decreasing size, owing, in all probability, to the fact that the coal is friable while the impurities are hard, causing a concentration of the low-ash material in the fine sizes. Illinois No. 6 coal being rather hard, naturally the reverse is true.

Jan 1, 1937

By W J. Dyck

Past attempts to establish an integrated steel industry on the West Coast of Canada have been unsuccessful for at least three reasons: (a) insufficient reserves of a suit-able iron ore supply; (b) a relatively small local market for iron and steel; and (c) the non-availability of an economical process to produce primary iron on a small scale. Today, the reserves of economically mineable ore deposits are ample to support a steel production of 100,000 to 200,-000 tons per annum. The local market has increased so as to be able to absorb most of this capacity. With-in the next few years, a small integrated steel plant, including the "H-Iron" direct iron ore reduction process for electric furnace charge stock production, will be able to show a profitable operation. Introduction

Jan 1, 1963

By H. G. Fleshman

The economics of western sodium bentonite (also known as Wyoming Bentonite) is covered from exploration to delivery to the final user. Included are costs of exploration, evaluation of ore bodies, mine permitting, stripping, loading, hauling through stockpiling, blending, processing and shipping. Since western bentonite is one of the industrial minerals marketed throughout the world, the various markets and freight costs are included.

Jan 1, 1984

By J. C. Agarwal

Rare earth metal alloys are becoming increasingly important, particularly those of neodymium, because of their magnetic properties. This paper will present a generalized approach to the production economics of the metallic rare earth alloys. With appropriate regard for the chemistry of different rare earths and the large impact of economies of scale, it is possible to make fairly accurate estimates of the production costs of other rare earth alloys as well.

Jan 1, 1989

By Joseph Pogue

PRORATION in the petroleum industry has come to mean a method for curtailing the production of crude petroleum by artificial effort, and it is in this sense that the term is employed throughout this paper. Although a contrived curb on supply has been invoked at various times in the past in particular fields and to meet specific situations, it is not until the past few years that this procedure has become general and assumed a dominant role in the oil business. In the sense that we now understand it, proration had its inception in the Seminole area of Okla-homa in 1927, from which time and place the practice spread to include practically all the flush oil fields of the country, especially those of California, Kansas, Oklahoma and Texas. At present there is perhaps no phase of the oil business that commands more attention than proration, nor one that engages more time and effort on the part of executives in the business. The practice of proration, indeed, has not only become an integral part of the policy of most companies and operators, but it has also taken on the aspects of a "movement" involving two schools of thought with considerable feeling, and at times some bitterness, on both sides. In this atmosphere it is difficult to find calm, dispassionate consideration of proration, for most discussions are either vigorous exhortations by its proponents, or else sharp condemnations by its opponents; although it appears that the majority of the industry is clearly "in favor of" proration. It is hoped that this analysis will be taken as an attempt to appraise the movement as an economic force, without bias and without regard to the incidence of the conclusions upon any preconceptions that the industry may entertain.

Jan 1, 1932

By E. C. Wright

FOR many years the cost of making pig iron and steel in the Birmingham district has been about the lowest in the United States. The close proximity of the important raw materials such as coal, iron ore, limestone, and the large available scrap supply made it possible to assemble all of the important ingredients necessary for steel- making with only nominal costs for transportation. Both iron ore and coal were being mined in this district at one time for about $1 per ton from underground operations. At that time mining wages were low everywhere and the labor rate in the South was considerably below that of other mining districts. This situation persisted until the emergence of labor unions as an economic and political force, emigation of southern labor to northern plants, and continued growth of industry in the South in the years following the depression of 1932. Since that time union organizing of miners and steel workers throughout the nation has increased labor costs in mining and steelmaking. This influence has been felt particularly in underground mining operations since the proportion of labor cost to total cost is still high. The previous advantage in basic labor rate in the South has been almost entirely eliminated by the equalization of labor rates in basic industries by national unions. Since 1945 these influences have been especially noticeable in increasing the cost of mining coal and iron ore in the South. The northern steel districts are still being largely supplied with iron ore from the Minnesota open-pit mines and the cost of this ore has not increased nearly as much as the cost of ore obtained from underground mines in Birmingham. A similar situation exists in coal mining; the thinner seams in Alabama are not so amenable to mechanization as the northern mines and, as a result, the output per man-day in southern mines is only about three tons of coal as compared to five or six tons per man-day in the large captive mines of West Vir-

Jan 1, 1950

By Howard M. Graff, Sidney C. Bouwer

The economics of mining has traditionally been viewed quite apart from the economics of blast furnace operations. It was realized, of course, that blast furnaces would operate best with good raw materials, but the shipping grade of ore, for example, was decided by a sort of collective bargaining process between the ore producers and the blast furnace operators. The mine operators had to keep their costs down, and were usually successful in convincing management that the ore in any particular deposit was endowed by nature with a certain iron content and that the mine grade could not be raised beyond a certain economic limit. The blast furnace operators would have liked a better grade, but as long as they were able to make a fairly good showing it was more or less accepted that they had to take the ore as it came. The mine operators were able to ship to the nation's blast furnaces thousands of tons of iron ore that would be completely unacceptable by present-day standards. As late as the early 1950's, the major steel companies were witnessing an actual decline in the iron content of their incoming ore supply as the mining companies mined progressively leaner material and upgraded it only enough to pass competitive market requirements

Jan 8, 1965

By P. M. Sullivan

A physical beneficiation flowsheet was designed by the Bureau of Mines for reclaiming and recycling metal and mineral values contained in municipal incinerator residues, and a continuous processing plant was installed. Residue samples collected from incinerators located in various parts of the country were processed at a rate of 1/2 ton per hour. Continuous screening, shredding, grinding, magnetic separation, and gravity concentration techniques were applied to produce metallic iron concentrates, clean nonferrous metal composites, clean fine glass fractions, and tine carbonaceous ash tailings. Research to develop systems for refining and upgrading the reclaimed metals and glass into marketable products is also underway. From the engineering data developed in the continuous processing plant, evaluations of the capital and operating costs for plants with capacities of 250, 400, 670, and 1,000 tons of dry incinerator residues per day were made. Research on a parallel system to separate and recover the metals, minerals, glass, paper, and plastics from raw, unburned refuse it currently underway, as are studies on the use of air classification to separate the refuse into organic and inorganic fractions.

Jan 1, 1971

By L. Rodd, C. Walker, T. Koehler

"The energy content of slag represents approximately 80% of the total energy inputs to a laterite nickel electric smelting furnace. Conventional slag handling methods produce only low grade heat and the entire thermal content of the slag is wasted. A heat recovery system proven on BOF slag in the mid 1980's can be adapted to a laterite nickel rotary kiln electric furnace (RKEF) plant. Slag is granulated using a high velocity air jet inside a waste heat boiler to produce slag granules. Granules are cooled during flight via radiation to water-cooled boiler walls and by convection to the granulation air. This system has the potential to recover 80% of the total slag energy in the form of hot air and steam.Integration of the recovered slag energy into the RKEF smelter can be achieved by a number of methods, including the use of preheated air at the ore dryers, kiln or existing power plant. Energy from the slag boiler may be used to reheat boiler feed water from the power plant or to produce superheated steam and generate electricity. The heat recovery system can provide up to 25 - 30% of the total electrical requirement of each RKEF line and a reduction in CO2 emissions of 234,000 tonnes per year.The total cost of slag heat recovery, including CAPEX and OPEX, is $2.5/GJ, which is competitive with using coal when CO2 credits are $18 per tonne. With Clean Development Mechanism (CDM) carbon credits currently selling at €13 ($20 USD) per tonne CO2, there is considerable opportunity for slag producers in regions including South America, Korea, Indonesia and Africa. Increasing fuel costs and more wide-spread legislation for GHG emissions will likely create conditions in which slag heat recovery could generate a favourable return on investment."

Jan 1, 2010

By James W. Estep

The sulphur shortage that has occurred in the past two years has directed attention more and more toward sour natural gas reserves, Wellhead values of sour gas vary widely depending upon the acid gas composition, location, market conditions, and necessary processing charges. Preparation of a saleable residue gas is considerably more involved and expensive than that normally encountered in treating a sweet gas. Recent revisions in sales gas specifications have increased capital costs and processing charges. The presence of hydrogen sulphide and carbon dioxide in a natural gas contributes to shrinkage factors that may approach 50%. Fuel required by the gas sweetening process and sulphur slant tail gas incineration also contributes to a further reduction in the volume of residue gas available for sale. The additional processing facilities involving gas sweetening, mercaptan removal, expanded utilities, sulphur recovery and sulphur handling, all demand additional operating and maintenance staff. A favorable sulphur market under certain conditions may justify the processing of sour gas whereby sulphur is either a by-product or a co-product, Five typical cases involving different compositions of sour gas are presented for evaluation. Capital costs, operating problems, and operating costs are presented in detail for full economic evaluation

Jan 1, 1967

By D. D. Young

During the 1970's a number of covered storage facilities were constructed in North America to store and handle large quantities of bulk, solid materials. This trend, away from outdoor storage piles, will probably continue at a stronger pace in the 1980's. This paper attempts to answer some of the questions often raised about the economics of large covered storage facilities. The paper is in four parts: 1. Why Build a Storage Facility? 2. 2. Common Components of Storage Systems With Details of Six Storage Facilities 3. Results of a Study for 50,000 Mg Clinker Storage 4. Guidelines for Conducting a Study to Select a Storage System.

Jan 1, 1980

By D. B. Gillies

IN 1938 the Republic Steel Corp. announced that it had leased the ore mines and other property of the Witherbee Sherman Corp. at Port Henry, N. Y. The announcement brought forth an interesting reaction. Two questions were asked repeatedly: (1) Is the iron product high grade? (2) Is there a substantial reserve? The answer to both questions was and is a decided and emphatic "Yes."

Jan 1, 1943

By C. P. McCormack

THE Cuyuna manganiferous iron ores can be a principal source of manganese for the iron and steel industry in the United States, provided metallurgical methods as a whole are adjusted so as to use run-of-mine ore. The use of manganese in steelmaking is growing. Increasing amounts of impurities in raw materials call for more manganese, a constant cheap supply of which is wanted. There are few deposits of ore in the United States carrying over 35 per cent. manganese that can be mined and marketed at a profit in normal times. We are largely dependent on foreign ores. The small domestic deposits should rightly be held in reserve for an emergency, such as a war, when importation might cease. Even the production from lean ores, concentrated it may be, might not carry us through a protracted stringency. The Cuyuna district is, therefore, during normal times capable of supplying a large total of manganese. The ores are iron ores containing 5 to 25 per cent. of manganese with the inverse range of 52 to 28 per cent of iron. The manganese costs no more per unit in the ore than the iron, because cost of mining, largely by open-pit methods, is not affected by the manganese content. The manganese units should, perhaps, command a higher price, but as their value is contingent on metallurgical practice, a higher price may be justified only when a shortage in manganese occurs. Manganiferous iron ores can never entirely supplant straight manganese ores though methods are employed that will permit them to do so partly. For the manufacture of ferromanganese, ores carrying above 42 per cent. manganese are needed. Ores with manganese running between 20 and 42 per cent. are used for making spiegeleisen. But established practice in certain plants, based on the admixture of manganiferous iron ores to straight iron ores has greatly lessened the consumption of high-priced, scarce, manganese alloys with good results.

Jan 2, 1925

By D. P. Harris

The construction of a model to associate probability of occurrence of some measure of mineral wealth with the geology for each subdivision (cell) of the area is postulated. The questions (1) are the observations made in reconnaissance geology sufficiently related to mineral wealth to distinguish the cells of high value from those of low value, and (2) can this geology be related mathematically to mineral wealth and probability are answered in a case study of 97,000 square miles in Arizona and New Mexico. Measurements on mineral wealth and geologic variables of 243 cells were made. The geologic variables, valued in counts, percentages and lengths, quantified the theoretical concepts of the model. It was found that multiple discriminant analysis and classification analysis by Bayesian statistics and multivariate normal probability function constitute a two-phase probability model that associates probabilities with geologic information and mineral wealth. The cells of explored area must be allotted the value class indicated by their cumulative production and estimate reserves (given well-defined geological relationships in a mineral wealth area), and a discriminant and classification analysis must be performed in which probabilities of the cell belonging to each of the value groups are generated as a function of the geologic variables. This determines whether high value cells can be distinguished from low value cells by their geology as well as indicating those cells misclassified by the model into a higher value group than warranted by their known mineral wealth. The second use of the model is for extrapolation. It is demonstrated how geologic information on an explored area can be utilized in guiding exploration in an unexplored area. Exploration decisions can be predicted on explicitly determined measures of uncertainty (the probabilities). SUMMARY This study postulates the construction of a model to associate probability of occurrence of some measure of mineral wealth with the geology for each subdivision (cell) of the area. Such a model will distinguish those cells deserving further exploration on the basis of their geology: The basic postulates of this study are as follows: v = Q(R,S,F,A) P(V) = G(R,S,F,A,V), where V = a measure of mineral wealth P(V) = the probability of occurrence of V R = age and type of rock F = rock fracturing A =age of igneous activity and contact relationships. There are really two questions to be answered: 1) are the observations made in reconnaissance geology sufficiently related to mineral wealth to distinguish the cells of high value from those of low value, and 2) can this geology be related mathematically to mineral wealth and probability? In order to answer these questions, an area of about 97,000 square miles situated chiefly in Arizona and New Mexico was selected as a case study. This case study area was divided into 243 cells, each 20 miles square, and measurements were made on mineral wealth and geologic variables. Crude geologic variables valued in counts, percentages and lengths are constructed to reflect the above postulated variables. These measurement variables thus provide quantified values defining the theoretical concepts of the model. It was found that multiple discriminant analysis and classification analysis by Bayesian statistics and the multivariate normal probability function constitute a two-phase probability model that associates probabilities with geologic information and mineral wealth. Given the availability of an area that is well explored and upon which the relationships of mineral wealth to geology can be adequately defined, there are two ways in which the analysis outlined in this paper can prove beneficial. First, the cells of the explored area must be allotted the value class indicated by their cumulative production and estimated reserves, and a discriminant and classification analysis must be performed in which probabilities of the cell belonging to each of the value groups are generated as a function of the geologic variables. Such an analysis determines whether cells of high

Jan 1, 1967