Mining—Technological Achievements Mark the Decade

Another record year vas experienced by the mining industry as the value of nonfuel minerals production soared to $23.5 billion-up 15% from the previous year. Based on preliminary estimates by the Bureau of Mines, US mine output was the basis for about $225 billion worth of minerals-derived materials. Metal mining accounted for $8.5 billion, or 36%, of the total. Of the 22 metals produced in the US, 11 showed quantity increases, while 16 had value increases. Business Week's survey of 1200 companies (Mar. 17, 1980, pg. 81) revealed that 21 metals and mining companies had sales increases of 30% with earnings up 104%. Higher prices and increased demand for metals were primary factors behind the improved performance. The steel sector reported a 30% decrease in earnings for the year, but the slump was primarily the result of a $383-million loss for US Steel coupled with a 17% decrease in earnings at Inland Steel. Other firms did well in 1979, with earnings up 279% at Interlake and 269% at Kaiser Steel. Major obstacles facing the steel industry included substantial tonnages of dumped and subsidized imports, environmental expenditures, runaway inflation, and price controls. Turning to nonmetallic production, of the 49 commodities reported by the US Bureau of Mines, 29 had higher outputs and 39 had increased values. While production statistics may seem encouraging, government regulations continued to stifle industry efforts to develop needed new capacity. A case in point may be publication of the Environmental Protection Agency's simplified procedure to streamline five permit programs by consolidating them into one. The five included: hazardous waste management, national pollution discharge elimination, dredge and fill, underground injection control, and prevention of significant deterioration. The new procedure, published by EPA in the Federal Register, took 149 pages. AMC's J.A. Overton, Jr., noted that (MCJ, Nov. 1979, p. 39) to visually depict the complexity of the proposed regulations, Sell Oil Co. developed a flow chart mapping a path through one section. The chart required 10 days to map and two weeks for two draftsmen, using computerized drafting techniques, to plot the results. Overton said, "Perhaps the greatest service EPA has performed in preparing its proposal is to demonstrate again that federal regulations have become a complexity compounded by confu¬sion that culminates in a conundrum." While regulatory agencies promulgate new regulations, the lack of a cohesive government minerals policy remained a matter of significant importance to mine management. A non-fuel minerals study to provide input to the Administration for a national minerals policy program was a dismal shock, according to Rep. Jim D. Santini (D-NV). He said the first phase of the program, which was to identify industry problems, failed to come to grips with the hard decisions necessary regarding these problems, their impact, and their interrelationship. Santini said the report failed to acknowledge government's role in the process and absolved the government of any adverse influence on the domestic minerals industry. In response to the phase one report, eight senior mining executives testified before Santini's House Subcommittee on Mines and Mining concerning mineral supply, access to foreign sources, environmental protection, conservation and recycling, national security, and capital formation. By year's end, Rep. Santini promised to prepare a hard-hitting committee report on problems affecting the non-fuel minerals industry to provide a better base for subsequent policy recommendations (MCJ, Jan. 1980, p. 34). On the technological front, interest again centered on mechanization, automation, and scaleup to improve and expand production. Computer use increased for calculation of ore reserves, mine planning, operations research, and mineral processing.